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.
ISSUE SHEET
GIFTS TO A MUNICIPALITY
Issue
24(1)
Response
THE CONFIDENTIALITY PROVISIONS OF THE INCOME TAX ACT DO NOT ALLOW ME TO DISCUSS TRANSACTIONS INVOLVING SPECIFIC TAXPAYERS.
IN GENERAL, A GIFT IS A VOLUNTARY TRANSFER OF PROPERTY WITHOUT CONSIDERATION. THE DEPARTMENT'S POSITION IS THAT A DONATION MADE BY A VENDOR TO A PURCHASER MUST BE SEPARATE FROM AND UN___________________________
Background
24(1)
• Pursuant to subsection 118.1(1) individuals may deduct a gift made to a Canadian municipality. A donation receipt may not be issued by a municipality, however, where there has not been a bona fide gift.
* Legally, a gift is a voluntary transfer of real or personal property from a donor, who must freely dispose of his or her property, to a qualified donee who receives the property given. To qualify, the donation must be in the form of an outright gift. Any legal obligation on the payor would cause the transfer to lost its status as a gift. Further, in order for an expenditure or transfer of property to be considered a gift, it must be made without conditions, from detached and disinterested generosity, out of affection, respect, or charity or like impulses, and not from the constraining forces of any moral or legal duty.
| For Further Information: |
Approved by ADM ______ |
Name: Claude TremblayPhone #: 952-1361October 30, 1990
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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