The taxpayer sought to establish through testimony of a Canadian tax accountant who had advised in connection with the transactions under review that an arm's length vendor (Ford U.S.) of debt and shares to the taxpayer had engaged in preliminary transactions for U.S. tax reasons rather than to accommodate a Canadian tax advantage to the taxpayer. Bédard J stated (at para. 43) that he could not accept the testimony of the accountant as to the American tax consequences to Ford U.S.
In addition, following Léveque v. Comeau, [1970] S.C.R. 1010, at 1013, and citing R. v. Joliver, 2000 SCC 29, a negative inference was drawn from the failure to have a witness from Ford U.S. testify as to its reasons for structuring the preliminary transactions.
Bédard J proceeded to find abuse (see summary under s. 245(4)).