Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Taxpayer requested clarification on the reporting and deductibility of federal political party contributions.
Position: General comments provided.
Reasons: See below.
XXXXXXXXXX
Bob Naufal
2013-051159
December 6, 2013
Dear XXXXXXXXXX:
Re: Federal political party contributions
We are writing in response to your letter to the Minister of National Revenue dated June 19, 2013 and the Minister's response dated October 28, 2013 regarding the reporting and deductibility of federal political party contributions.
Under subsection 127(3) of the Income Tax Act a taxpayer may deduct from Part I tax otherwise payable in a taxation year a percentage of the eligible amount of a monetary contribution made by the taxpayer in the year to a registered party, registered association or a candidate in a federal election or by-election. The maximum annual tax credit available is $650 per taxpayer.
As discussed with you on December 3, 2013 (Naufal/XXXXXXXXXX) lines 409 and 410 of the General Income Tax and Benefit Guide provide the following instructions to taxpayers regarding the reporting of federal political contributions:
Enter on line 409 the total you and your spouse or common-law partner contributed...to a registered federal political party or a candidate for election to the House of Commons.
In addition, Income Tax Information Circular, IC75-2R8 Contributions to a Registered Party, a Registered Association or to a Candidate at a Federal Election provides information for authorized agents with respect to the issuance of receipts. Each of these publications is available on our website at www.cra-arc.gc.ca.
As noted in the Minister's response of October 28, 2013, your comments about the clarity of the CRA's publications and frontline services have been forwarded to the responsible CRA officials for their review and consideration.
We trust our comments will be of assistance.
Yours truly,
Jenie Leigh
Section Manager
for Division Director
Financial Industries and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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