The Court found that the taxpayer was liable for penalties under s. 163.2 for participating in the making of false statements relating to 134 taxpayers' claims for charitable tax credits.
Stratas JA stated obiter dicta that it was unlikely that s. 163.2 penalties could ever amount to cruel and unusual punishment given that s. 163.2 penalties are based on a formula that attempts to "gauge the extent to which the impugned conduct may have affected the tax system" - in this case, 50% of the amount of tax that the 134 participants sought to avoid.