Reiss Estate v. Canada
A-205-98
Desjardins J.A.
17/6/99
9 pp.
Appeal from Tax Court decision allowing appellant's appeal from reassessment for 1990-Taxpayer, owner of 50% interest in 25.89 acres of vacant land situated in Halifax, died in 1990-Tax Court Judge determined, for purpose of establishing taxable capital gain realized from deemed disposition, value of land $246,000 on December 31, 1971 (Valuation Day or VDay) and $1,426,000 at time of death-Property originally consisting of 31 acres, 5.084 of which expropriated in 1975-Expropriated acres valued at $18,000 per acre in 1975-Tax Court erred in not considering expropriation award in establishing value of land in 1971-According to case law, should have considered award in light of all circumstances, and accepted it subject to its weight-Circumstances including dearth of comparable sales in years contemporaneous to V-Day; expropriation award for former portion of very land at issue-Tax Court ought to have verified if award had characteristics for minimizing this kind of evaluation, and if extraneous elements which falsified figure normally found in open market sale deemed to represent fair value of property-Ought to have considered fact expropriation award made by specialized tribunal pursuant to lengthy adversarial proceedings designed precisely to establish fair market value of portion of land-By rejecting such award outright, Tax Court ignored relevant evidence of specialized tribunal, misapplied law-Matter returned to Tax Court on this ground-Confusion as to whether Tax Court considering costs of extending sewer line to property in determination of value of land-For purpose of clarity, matter returned to Tax Court on this second ground of appeal as well to make sure such costs properly considered-Appeal allowed with costs.