Dutil v. The Queen, 95 DTC 281 (TCC)

After confirming the Minister's reassessment that had been made on the basis that a painting donated by the taxpayer to a gallery have been over-valued by a factor of approximately five times, Dussault TCJ. went on to indicate (at p. 287) in obiter dicta "it may be seriously doubted whether such a gift even exists in the true sense when the taxpayer's sole motivation is clearly to enrich himself, not impoverish himself".

In finding that the taxpayer, who purchased a painting and then immediately donated it to a gallery for an appraised value that was five times his purchase price, was subject to the penalty, Dussault, T.J.C. stated (at pp. 287-288):

"I do not think a reasonably intelligent and prudent person could seriously claim to have made an honest gain through a charitable donation ... . If the appellant did not know the exact amount of the valuation and the receipt until after he had agreed to his colleague's proposal, as he claimed, and despite the fact that his cheque was dated after both the valuation and the receipt, the value set in those documents at five times the amount spent should have alerted him. I do not accept the argument that in his former line of work, securities, it was ordinary that securities, for no apparent reason, quintuple in value in three days ..."