Hershfield J. evaluated the appeals of six employees of an Indian employee leasing service situated on a reserve. Three taxpayers lived on a reserve and worked for a company that produced housing, predominantly for members of their Nation who moved back onto the reserve when the housing was completed. The company also had the taxpayers constructing temporary off-reserve housing, necessitated by short-term on-reserve housing shortages. Hershfield J. granted these taxpayers' exemption, stating (at para. 118) that "the location of the work is off-reserve, is a disconnecting factor but not a fatal one." The work was (para. 117) "linked to [the taxpayers'] reserve as a physical location".
One taxpayer lived in Toronto and worked at a Toronto print shop, and one lived on a reserve and worked for a Hamilton sod producer. They did not qualify for a s. 87(1) exemption because they worked (paras. 107-08) "off-reserve in a mainstream off-reserve commercial operation." The remaining taxpayer lived in Brantford and worked for an off-reserve organization that assisted people on-reserve. Hershfield J. found that the taxpayer did not demonstrate sufficient connection to the reserve for the years in question.