Nash Quinn &
Tolley v. Queen
On November 21, 2005 the Federal Court of Appeal ruled
in favour of CRA (Canada Revenue Agency) and against the taxpayer Nash Tolley
and Quinn and reduced the Fair Market Value of the property which was donated
as part of their prior participation in a Gift in Kind Donation Program.
Originally, Nash Tolley and Quinn went to the Tax Court of Canada and
had won against the original reassessment. CRA had then appealed that decision
and went to the Federal Court of Appeal on September 12, 2005.
The
final decision had reduced the donated Fair Market Value down to the original
purchase price.
The average reduction was reduced from an average Fair
Market Value of $26,190.00 down to an average purchase price of $4,446.00. This
is an approximate reduction of 68%. This decision is FINAL. Now every
reassessed participant who participated along with Nash Tolley and Quinn in the
"buy low donate high" donation program will have to pay to CRA significant
additional taxes and interest thereon
Klotz v.
Queen
On August 17, 2004 the Tax Court of Canada ruled in favour of CRA
(Canada Revenue Agency) and against the taxpayer Klotz and reduced the Fair
Market Value of the property he donated as part of his prior participation in a
Gift in Kind Donation Program.
Klotz appealed the decision and on May
2, 2005 the case went before the Federal Court of Appeal and on that date the
Federal Court of Appeal dismissed his appeal with cost. As a result of this
dismissal the unfavorable decision dated August 17, 2004 that reduced the fair
market value of Klotz's charitable donation from $258,000 to $75,000 is now
FINAL. Now every reassessed participant who participated along with Klotz in
the "buy low donate high" donation program will have to pay to CRA significant
additional taxes and interest thereon.
