The Minister was incorrect in finding that the taxpayer's race-horse business was not a chief source of income for the purposes of s. 31. The taxpayer's only other major income source was a corporation in which he held 98% of all shares ("Fondatechnique"). Jorré J. stated (at para. 44):
The appellant's cash investment in the race-horse business was much greater than his investment in Fondatechnique. Although the sales figures for the horse business was between a quarter and a third of that of Fondatechnique, it is still an average of more than $230,000 per year. Over the three years in question, the appellant regularly spent time on the farming business throughout the year and this time, an average of around 30 hours a week, is significant.