The taxpayers, spouses, bought a farm in 2003 to start a tree farming business. Hogan found that the farm was owned by the taxpayers rather than being partnership property. On that basis, their ability to claim the capital gains exemption on a sale of the farm turned on establishing that the property was used in a farming partnership rather than being used in a direct farming business of the taxpayers. The Minister argued that the taxpayers were instead engaged in activities as spouses acting for the common good of the couple.
In finding that there was a partnership, Hogan J noted that the authorities cited by the Minister to establish that the courts should be cautious in finding a business partnership between spouses were "almost exclusively dependent on their facts" (para. 45), whereas in the present case (para. 46):
[Both taxpayers] were fully engaged on a regular and continuous basis in the operation of the Tree Farm, and they pursued that venture with the plan of realizing significant annual profits when the trees were ready for harvesting.