Woods J. found that it was not reasonable for the taxpayer, a professional corporation belonging to Dr. Arlin, to claim credits on the basis that one fifth of Dr. Arlin's salary was in respect of scientific research. Dr. Arlin was a dental surgeon, who used specialized software to accumulate data over approximately fifteen years on the approximately 12,000 dental implants he administered in that time. His evidence was too vague to support a conclusion that he actually spent much time on these activities, and the convenient nature of the software suite also suggested that the time investment would have been minor.
Woods J. also stated (at para. 20):
It is the position of the respondent that there was insufficient evidence of systematic investigation because hypotheses were not determined prior to the data collection. This position is very narrow and I am reluctant to agree with it.