The appellants appealed reassessments regarding the valuation of a shareholder benefit for their personal use of a boat owned by their company.
The Tax Court of Canada found that the boat was acquired and used primarily for bona fide business marketing purposes, and that the appellants' personal use was minimal (around 5%).
The Court concluded that the $18,000 the appellants paid to the company each year was a reasonable fair market value for their personal use.
The appeals were allowed with costs.
