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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: A potential donor is seeking confirmation of the tax implications of a particular donation arrangement.
Position: Provided general comments on gifting arrangements.
Reasons: The confidentiality provisions of the Act preclude us from commenting on specific donations arrangements unless the request is received from the promoter of the arrangement.
2003-004733
November 12, 2003
Dear XXXXXXXXXX:
This is in reply to your e-mail of November 4, 2003 in which you requested our views with respect to a particular donation arrangement.
The confidentiality provisions of the Income Tax Act preclude us from commenting on the tax implications of specific donation arrangements unless the request is received from the promoter of the arrangement.
By way of general comment, recent amendments to the Income Tax Act require a promoter to register gifting arrangements as tax shelters in certain circumstances including those where it is held out that the tax credit will exceed the donor's cost of the property donated. Registration does not imply that the CCRA has reviewed the tax implications of the arrangement although such a review is likely to occur at a later date.
A potential donor should ensure that the donation arrangement is legally effective and therefore you may wish to obtain independent legal advice. In addition, valuation of the property donated is generally a key issue in determining whether the promised tax credit will be available to the donor.
Jenie Leigh
Senior Rulings Officer
Income Tax Rulings Directorate
Canada Customs and Revenue Agency
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2003
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2003
Email this Content