The appellant contended that he had resigned as director in 2006, so that an assessment under s. 227.1(1) in 2010 was out of time. The Minister alleged that the appellant's notice of resignation was backdated. In the course of her decision, Campbell J rejected the taxpayer's argument that, because fraudulent backdating is an "improbable" or "grave" allegation, the Minister faced a heightened onus. The allegation was not especially improbable but, even if it were, the only burden of proof in the civil context is the balance of probabilities. There are various comments in the caselaw about exercising "greater care" where there are serious or dubious allegations. These comments do not establish a heightened onus, but rather acknowledge that improbable allegations will, by their very nature, need clearer proof in order to meet the balance of probabilities (para. 24).
However, the Minister had not pleaded backdating - only that the appellant had continued as a director – nor did she plead lack of due diligence. Accordingly, explanations of the appellant which were plausible were sufficient to demolish the Minister's assumptions notwithstanding that "in all likelihood, the Appellant backdated the Resignation" (para. 45).