Précis: As most readers are aware the early 2000’s saw a raft of charitable donation in kind cases involving art, medicine, software, etc. Virtually all failed because the Courts held that the values attached to the gifts were inflated. This is one of the remnants of those lines of cases. One category of donation was of “Lotus Smart Suite” (“LSS”) from Systelligence Systems Inc. (“Systelligence”); the donation receipts claimed were for $600 per program. The Minister allowed $120 per program, i.e., what the participants in the donation plan had paid. The Court accepted the Crown’s evidence that the software was unlicensed and unauthorized by Lotus. Accordingly, the taxpayers had not adduced evidence to refute the donation amount used by CRA. In the case of the Blue and Purple Collection CD-ROMs donated in 2002 and 2003 the Court similarly found that the value was far less than the donation receipts claimed. Thus the Court dismissed all of the appeals.
The Court however declined to award costs against the taxpayers since they had followed the Informal Procedure process in launching and pursuing their appeals.
Abreo v. R. – TCC: One of the last software charitable donation cases fails based on the Court finding the software had very little valuePlus >