Bitton – Court of Quebec computes the taxable benefit from personal use of a corporate jet at US$6500 per hour

The taxpayer used a mid-sized corporate jet owned by one of the subsidiaries in the group predominantly in relation to business travel. However, the aircraft was also used for the personal use of the taxpayer and his immediate family. It was agreed that the personal use hours of the aircraft for 2013 and 2014 were 19.53 and 39.39 hours, respectively, representing 20.78% and 23.46%, respectively, of the total hours of use.

In determining the quantum of the benefit on which the taxpayer was taxable under the Quebec equivalent of ITA s. 246(1)), Bourgeois JCQ rejected the taxpayer’s reliance on the CRA Communiqué AD-18-01 (also rejected by the ARQ) which, in its most favorable aspect, indicated that where an employee took a flight on the aircraft for business reasons, but there was a personal purpose for others taking the flight, the value of the taxable benefit for such personal use was based on the highest-priced ticket available on the marketplace for an equivalent commercial flight. He noted evidence that there was considerably more convenience, time efficiency and flexibility in using a private jet than in taking a commercial flight.

However, he also rejected the position of the ARQ that the benefits should be computed by taking into account, in addition to the aircraft operating costs, the CCA deductions taken on the aircraft.

Bourgeois JCQ concluded, based on the evidence presented, that the fair market value cost for chartering a mid-sized corporate jet was US$6,500 per hour. He computed the annual benefits by multiplying the annual hours of personal use by this figure and then converting that amount to Canadian dollars.

Neal Armstrong. Summary of Bitton v. Agence du revenu du Québec, 2026 QCCQ 312 under s. 246(1).