[2011] 3 F.C.R. D-3
Income Tax
Reassessment
Consolidated appeals from Tax Court of Canada (T.C.C.) decision (2010 TCC 455) allowing respondents’ (Spence, Ratcliffe) appeals against reassessments under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1—Respondents sending their children to school where employed for half the tuition fees—Declaring as benefit difference between actual overhead cost per student incurred by school, employee tuition rate paid by respondents—Minister of National Revenue reassessing respondents on basis that benefit received was fair market value of education, minus tuition paid—T.C.C. following Detchon v. Canada, [1996] 1 C.T.C. 2475 wherein value of benefit determined to be actual cost of good or service incurred by employer—Appellant contending that T.C.C. should have held that value of benefits was fair market value—Appeal herein governed by Schroter v. Canada, 2010 FCA 98, 403 N.R. 83 wherein Court determining that equal treatment of taxpayers facilitated by valuing benefits at fair market value—At issue herein not cost for employer of granting benefit to employees, but value of benefit received by employees—Cost of benefit to employer wrong instrument to assess value of benefit—Respondents providing no evidence that valuation based on fair market value inappropriate—Value assessment based on cost incurred by employer unfair—Appeals allowed.
Spence v. Canada (A-363-10, A-364-10, 2011 FCA 200, Létourneau J.A., judgment dated June 13, 2011, 10 pp.)