Free parking for school employees was found to be a taxable benefit which should be valued at fair market value. The Minister's and taxpayers' valuations both used the direct comparison approach, which determines value by checking prices for similar products or services. Paris J. rejected comparisons to parking lots that were far away from the school, and ones that were close to busy streets. Of all parking places that experts compared, the only reasonable ones were in two nearby apartment buildings. Paris J. took the average of their prices, less 10%, to be the fair market value of the benefits; experts for both sides agreed that, being outdoors, the school parking was worth 10% less than otherwise comparable indoor parking.
On appeal, the Court rejected the taxpayer's further submission that fair market value is an appropriate basis for valuation only where there is an open market for the benefit in issue (para. 6).