The trial judge had lifted the corporate veil by treating the taxpayer and a corporation of which the taxpayer was the sole shareholder and director, as one and the same in denying the taxpayer a credit under s. 122.3(1). Malone J.A. stated (at p. 7192):
"Lifting the corporate veil is contrary to the long-established principles of corporate law. Absent an allegation that the corporation constitutes a 'sham' or a vehicle for wrongdoing on the part of putative shareholders, or statutory authorization to do so, a court must respect the legal relationships created by a taxpayer ... . A court cannot re-characterize the bona fide relationships on the basis of what it deems to be the economic realities underlying those relationships ... ."