Canada v. Spence, 2011 DTC 5111 [at at 5937], 2011 FCA 200 -- summary under Paragraph 6(1)(a)

The taxpayers enrolled their children at the Montessori school where they taught, and were charged tuition at a 50% discount to that charged to the other parents. The trial judge found that the resulting taxable benefit should be valued at the costs incurred by the school in connection with the taxpayers' children minus the tuition paid. The Court of Appeal agreed with the Minister that the appropriate valuation method, as per Schroter, should be based on the fair market value of the service, so that the taxable benefits were equal to the difference between the regular tuition and the discounted tuition charged to the taxpayers.