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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Deductibility of gifts Made to a Canadian Municipality
This is in reply to your letter of January 18, 1993, requesting on opinion relating to Section 110.1 of the Income Tax Act (the "Act").
XXXXXXXXXX
As indicated in paragraph 16(f) of our Interpretation Bulletin 110R2, although gifts directed to a person designated by a donor are not eligible for income tax receipt, donations made to a Canadian municipality can be subject to a general direction but only in respect of the particular program in which the donations are to be used.
Decisions regarding the utilization of the donations within the program must remain the exclusive responsibility of the municipality.
Furthermore, in order to qualify for this administrative concession regarding general directions, it is necessary that the program being funded be operated under the authority of the municipality.
Provided that the program is in fact being operated under the authority of the XXXXXXXXXX donations made to the municipality would qualify as Charitable Gifts eligible for tax purposes by the donors.
We trust that we have been helpful.
Yours truly,
E. Wheeler for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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