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 Issues:
Whether an anonymous donor may claim a deduction under subsection 118.1(3) in respect of donations to charitable organizations.
Position:
No
Reasons:
The official receipt would not contain the required prescribed information under paragraph 3501(1)(g) of the Income Tax Regulations.
953205
XXXXXXXXXX B. Kerr
Attention: XXXXXXXXXX
December 15, 1995
Re: Anonymous Charitable Gifts
This is in reply to your letter of December 6, 1995, concerning a proposed transaction involving anonymous charitable gifts.
The situation described in your letter involves a taxpayer that wishes to make gifts to several charitable organizations but does not wish to be identified. The taxpayer would appoint an agent to make the gift on his behalf. The donation receipt would be issued in the name of the agent. You have asked us whether the taxpayer would be able to deduct amounts in respect of the charitable gifts under subsection 118.1(3) of the Income Tax Act (the "Act").
The situation described in your letter involves actual proposed transactions with identifiable taxpayers. Assurance as to the tax consequences of actual proposed transactions will only be given in the context of an advance income tax ruling. The procedures for requesting an advance income tax ruling are outlined in Information Circular 70-6R2 dated September 28, 1990, and the Special Release thereto dated September 30, 1992, issued by Revenue Canada, Taxation. However, we can offer the following general comments.
For the purpose of these comments, we assume that the gifts are to "charitable organizations" as defined in subsection 149.1(1) of the Act. Therefore, each organization would also be considered to be a "registered organization" as defined in section 3500 of the Income Tax Regulations (the "Regulations") and a "registered charity" as defined in subsection 248(1) of the Act.
Subsection 118.1(3) of the Act provides that in computing tax payable under Part I of the Act for a taxation year, an individual may deduct an amount determined by formula in respect of the individual's total gifts for the year. The term "total gifts" of an individual is defined in subsection 118.1(1) of the Act to include, inter alia, an amount in respect of the individual's total charitable gifts for the year. However, by virtue of subsection 118.1(2) of the Act, a gift shall not be included in the total charitable gifts of an individual unless the making of the gift is proven by filing with the Minister a receipt therefor that contains prescribed information.
For the purposes of subsection 118.1(2) of the Act, paragraph 3501(1)(g) of the Regulations provides that an official receipt issued by a registered organization must contain the name and address of the donor including, in the case of an individual, his first name and initial.
Since the donor wishes to remain anonymous, the official receipt would not contain this prescribed information. Thus, in our view, the taxpayer would not be able to deduct any amount in respect of the gift.
In addition, as stated in paragraphs 32 and 46 of Information Circular 80-10R, we would caution that a registered charity that issues receipts that do not comply with the Regulations or that contain false information may cause the Department to revoke its registration under paragraph 168(1)(d) of the Act.
We trust that these comments will be of assistance.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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