In the course of successfully demonstrating that a franchise agreement and related arrangements with a Barbados corporation reflected a genuine business (see summary under s. 3), the taxpayer argued that the Minister's failure to disclose her assumptions in the notice of assessment meant that she should not be entitled to rely on them.
Bédard J disagreed. The assumptions were not disclosed until 21 months later, in the Minister's reply to the taxpayer's notice of appeal. However, Orly Automobiles establishes that a delay is not a basis in itself for shifting the burden away for the taxpayer.
Moreover, there had been no prejudice to the taxpayer, who had correctly guessed the basis for reassessment and had filed his appeal accordingly.