After finding against the taxpayers on the grounds inter alia that two Barbados trusts were resident in Canada, Sharlow, J.A. found that if Barbados trusts were in fact entitled to a treaty exemption based on their residence in Barbados, this would not result in a misuse or abuse of that Convention given that the treaty exemption (para. 90):
...flows from the fact that in the Barbados Tax Treaty, Canada has agreed not to tax certain capital gains realized by a person who is a resident of Barbados. If the residence of the trust is Barbados for tax purposes, the trusts cannot misuse or abuse the Barbados Tax Treaty by claiming the exemption.