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.
| |
June 14, 1990 |
| Charities Division |
Business and General |
| Room 500 |
Division |
| 400 Cumberland |
C. Tremblay |
| |
957-2095 |
| |
File No. 900823 |
Subject: 24(1) as Agents of the Crown
This is in reply to your memorandum of May 17, 1990, wherein you request our opinion as to whether gifts made to the 24(1) a registered charity, are considered allowable deductions under section 118.1 or paragraph 110.1(1)(b) of the Income Tax Act (the "Act"). Specifically you wish to know if the 24(1) qualifies as an Agent of the Crown for the Province of Saskatchewan.
Our Comments
In order for the 24(1) to be able to treat donations received as being a gift to Her Majesty pursuant to section 118.1 or paragraph 110.1(1)(b) of the Act, the 24(1) would have to be an Agent of the Crown in right of Canada or a Province. Furthermore, in order for a particular entity to be considered such an Agent of the Crown, the law creating the entity must expressly make it an Agent of the Crown or it must be an Agent of the Crown at common law. From a review of the enabling documents, there is no statutory provision making the 24(1) a Crown agent for the Province of Saskatchewan. Thus we must look at common law. If the enabling legislation is not clear with respect to the status of an entity as an agent of Her Majesty in right of a Province, it is our policy to accept the opinion of the provincial Attorney General as regards the common law status.
Accordingly, we suggest that the 24(1) request the opinion of the Attorney General of Saskatchewan. If the 24(1) or Saskatchewan Justice were to provide you with a letter starting that, in the view of the Attorney General, the 24(1) is an Agent of Her Majesty in right of the province of Saskatchewan at common law, the Department would accept this for purposes of recognizing receipts issued for purposes of paragraph 110.1(1)(b) and subsection 118.1(1) of the Act.
In certain situations, a registered charity can be specially authorized to receive gifts in trust for Her Majesty in right of Canada or a province. As a result, gifts to such a registered charity will qualify as crown gifts and will not be subject to the 20% limitation. Accordingly, if the 24(1) is granted status as an Agent of the Crown in right of Saskatchewan, it could receive gifts in trust for Her Majesty and yet preserve its registered charity status.
We trust our comments will be of assistance.
for Director Business and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Sa Majesté la Reine du Chef du Canada, 1990
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