The appellant estate appealed a reassessment denying a charitable donation tax credit for the 2012 taxation year.
The deceased had implemented a tax plan transferring shares to a private foundation, which then disposed of them to the deceased's company in exchange for a promissory note.
The Tax Court of Canada held that the promissory note was a non-qualifying security and the only consideration received at the time of disposition.
Consequently, under paragraph 118.1(13)(c) of the Income Tax Act, the deemed value of the gift was nil.
The appeal was dismissed.
