Summary

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Summary

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Taxation - Assessment - Fair Market Value - Charitable Gift Tax Credit - What is the fair market value of groups of limited edition prints purchased by the Applicant taxpayer and donated by him to a university - Taxpayer is entitled to a tax credit in respect of a donation based on the fair market value of the property donated - Whether the Federal Court of Appeal erred in holding that a fair market value determination is strictly a question of fact, reversible only if there has been a palpable and overriding error - Whether as a result of this error, the Federal Court of Appeal failed to properly apply the accepted judicial definition of "fair market value" to determine the fair market value of 250 limited edition original prints donated by the Applicant to a university.

The taxpayer, Mr. Klotz, purchased the 250 prints and then immediately donated to a university. The taxpayer made a claim for a charitable gift tax credit in an amount which was subsequently disallowed by the Minister. The Minister did allow a deduction in the amount at which the taxpayer had purchased the prints from the promoters. The Tax Court of Canada and the Federal Court of Appeal dismissed the appeals.

Lower Court Rulings