Arthur S. Donovan v. Her Majesty the Queen, [1996] 1 CTC 264, [1996] DTC 6085

By services, 16 April, 2024
Is tax content
Tax Content (confirmed)
Citation
Citation name
[1996] 1 CTC 264
Citation name
[1996] DTC 6085
Decision date
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
791156
Extra import data
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Style of cause
Arthur S. Donovan v. Her Majesty the Queen
Main text

McDonald J.A.: — We are all of the view that the Tax Court Judge committed no error in law in deciding the issues before him as he did. We agree with him that a benefit was received by the shareholder and was therefore properly taxable in his hands.

In our view he was also correct in concluding that the value of the benefit was not reduced by credit balances in the shareholders loan accounts for the years in question as there was no connection between the loan and the costs incurred in acquiring the property.

For the reasons given in the Youngman decision by this Court, the use of a cost computation based on the interest applicable to the cost of the property was in our view an appropriate method of calculating the value of this benefit as opposed to a market value assessment.

The appeal will be dismissed with costs.

Appeal dismissed.

Docket
A-48-94