1184369 B.C. – BC Court of Appeal finds that the taxpayer was required to disprove the Minister’s assumption as to a property’s FMV (based on its property assessment value)

The Crown pleadings in the appeal of the taxpayer (“118”) of a property tax assessment stated an assumption as to the property’s FMV (which had been determined as its assessed value as determined by BC Assessment), rather than the lower value inferred by the purchaser from a related share purchase agreement.

Skolrood JA referred with approval to the finding in Preston that tax assumptions containing statements of mixed fact and law will not be invalidated simply on that basis if the factual underpinnings are clearly stated, there is no dispute about the legal principles and no prejudice results, and further noted that Preston had found that “[f]air market value is predominantly factual”. He found that the chambers judge had erred in setting aside the Minister’s assumption of fair market value on the basis that this was a statement of mixed fact and law.

In this regard, after noting that “this Court has held that except in certain limited circumstances, the tax assessed value is not proper evidence of fair market value”, Skolrood JA went on to state that “the courts do not engage in a deep inquiry into the basis for the Minster’s assumptions; instead, the analysis goes to whether the assumption has been successfully disproven on a balance of probabilities”, which 118 did not do.

Neal Armstrong. Summaries of British Columbia v. 1184369 B.C. Ltd., 2024 BCCA 380 under General Concepts – Onus, FMV- land.