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.
TO Charities Division FROM R.B. Day
' A.M. Smiley DE 957-2136
SUBJECT: Blocked Currency Donations FILE 7-4840
OBJET: DOSSIER
We are writing in reply to your memorandum of March 28, 1990, wherein you requested our views regarding the above mentioned subject relative to the questions posed in the March 2, 1990, letter from
Our understanding of the situation set out in letter is as follows:
Our Comments
We will respond to the questions posed in letter in the order in
which they appear.
- 1. The definition of property, as set out in subsection 248(1), states that unless a contrary intention is evident, property includes money. As a consequence it is our view that the blocked currency would be considered to be property and that paragraph 3501(1)(e.1) would be applicable to the blocked currency donation.
With respect to the second part of question, it would appear to
be an administrative matter that could best be answered by your
division. However, we note that official exchange rates for
countries such as an LDC frequently bear little relationship to the
fair market value of their currency. Accordingly, the proposed
procedure may substantially over-state the value of the gift to the
registered charity.
2. We are enclosing, for your information, copies of recent advance
income tax rulings regarding which dealt with the issue of
Unless you have some administrative concerns regarding paragraph 18
of IC-80-10R, the favourable rulings issued indicate that we are not
offended by this aspect of their proposed transactions.
- 3. This Branch has not developed any particular policies with respect to blocked currency donations. To the extent that this question involves and administrative matter, it would best be answered by your division.
We trust our comments will be of assistance to you.
B.W. Dath
Director
Business and General Division
Specialty Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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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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