The Minister disallowed a number of the taxpayer's expenses allegedly connected to his dentistry practice so as to reduce the taxpayer's profit margin to the Canadian average. McArthur J. stated (at para. 35) that this was not acceptable because a reassessment cannot ignore the taxpayer's individual circumstances. He also stated (at para. 36):
The appellant clearly demolished [with documentary evidence] the Minister's assumptions , on which he had based himself in disallowing the expenses in issue. The appellant has prima facie shown that the majority of the expenses has been incurred for the purpose of earning an income and that they had not been claimed twice. The burden of proof has thus shifted to the respondent.
As the Minister had not introduced evidence to discharge that burden, the taxpayer's appeal was allowed.