The taxpayer reported successive business losses, arousing the Minister's suspicion as to how the taxpayer could support his family when he purportedly had essentially no income. Paris J. disallowed the assessment for the year outside the normal reassessment period, notwithstanding that the taxpayer was uncooperative with the reassessment. (Para. 17):
The allegation that the Appellant misrepresented his income is based on on a net worth audit in which the great majority of the figures used were not verified by the auditor because the [taxpayer] did not cooperate. ... The assumptions made by the auditor in reassessing cannot be relied on by the [Minister] for the purpose of meeting the onus to prove a misrepresentation. ... It may have been possible for the Minister, during the audit, to obtain such evidence, if it existed, by issuing requirements to the Appellant and third parties, but for whatever reason, this was not done.