The Minister's position, as revealed in the examinations for discovery, was that the taxpayers, who invested in what quickly became a profitable limited partnership, were not able to deduct losses that arose as a result of their debt financing of their purchase of units. In allowing the taxpayers' appeal, Bowman T.C.J. stated:
"Whatever else may be said about 99% financing of an investment, it certainly cannot be said that its result is that the vehicle in which the taxpayer has invested did not carry on a business ... . Where there is no personal element and a genuine business exists the NREOP doctrine has no application ... . To use it to restrict the deduction of interest that is specifically permitted by paragraph 20(1)(c) ignores not only the plain meaning of that paragraph, but the highest pronouncements as to the purpose of the interest deduction ..."