The taxpayer argued that its renovated boat was qualified property even though it had, contrary to the definition of "qualified property" in s. 127(9), been used before "for any purpose whatever." The taxpayer was unsuccessful in relying on a cancelled bulletin to establish an exception. Apart from the fact that the bulletin was no longer in effect, Favreau J. stated (at para. 18):
The tax authorities are not bound by their own administrative positions and they may at any time decide to go against their administrative position in making an assessment. In such a case, the taxpayer has no recourse before the courts.