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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
PRINCIPAL ISSUE:
Whether an organization that is a Crown agent can issue official income tax receipts for gifts received.
Position TAKEN:
Receipts can be issued.
Reasons FOR POSITION TAKEN:
Given that the Crown only acts through servants and agents, the expression "Her Majesty in right of a province" includes agents of Her Majesty in right of the province. Since Her Majesty in right of a province can issue receipts, an agent of the provincial Crown can also issue receipts.
5-950041
XXXXXXXXXX C. Chouinard
Attention: XXXXXXXXXX
January 20, 1995
Dear Sir:
Re: Official Income Tax Receipts
We are writing to inform you that it has recently come to our attention that our response to your July 27, 1992 letter, wherein you requested confirmation that the XXXXXXXXXX can issue official income tax receipts for gifts received, was based upon a false assumption, namely, that the College was not an agent of the Crown.
We had occasion recently to review the College and Institute Act of British Columbia, the legislation under which the College was established. Section 53 of the College and Institute Act, R.S.B.C. 1979, c. 53, as amended, provides that an institution, which includes a provincial institute, is for all its purposes an agent of the Crown in right of the Province and its powers may be exercised only as an agent of the Crown in right of the Province. Since the College was designated as a provincial institute under the above-mentioned Act, it is an agent of the Crown.
Given that the Crown only acts through servants and agents, the expression "Her Majesty in right of a province", in paragraph 110.1(1)(b) and subsection 118.1(1) of the Income Tax Act (the "Act"), includes agents of Her Majesty in right of the province. Since the College is, by statute, an agent of Her Majesty in right of British Columbia, it can issue official income tax receipts in respect of gifts received to the same extent as Her Majesty in right of British Columbia.
Accordingly, in our opinion:
(i)gifts made by a donor which is a corporation to the XXXXXXXXXX in its capacity as agent of Her Majesty in right of British Columbia, will qualify for a deduction under paragraph 110.1(1)(b) of the Act, subject to the restrictions on deductibility provided for therein and provided official receipts, containing prescribed information as required by subsection 110.1(2) of the Act, are filed by donors with the Minister of National Revenue, that is, submitted with their tax returns, and
(ii)gifts made by a donor who is an individual to the XXXXXXXXXX in its capacity as agent of Her Majesty in right of British Columbia, will entitle the individual to a tax credit, calculated in the same manner provided in subsection 118.1(3) of the Act, on the basis that the full amount of the gift is included in calculating the individual's "total Crown gifts" pursuant to the definition of that term in subsection 118.1(1) of the Act, provided that the individual files a receipt for the gift containing prescribed information as required by subsection 118.1(2) of the Act.
In accordance with paragraph 21 of Information Circular 70-6R2, the above comments are not advance rulings and are not binding on the Department.
We trust this will be of assistance and we apologize for any inconvenience our mistaken assumption may have caused.
Yours truly,
R. Albert
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1995
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