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.
December 5, 1984
The purpose of this letter is to obtain your opinion on United States tax laws governing donations made to Canada.
Article XXI(5) of the new Canada-United States Income Tax Convention sets out the conditions under which such deductions may be allowed for purposes of United States taxation.
The situation we have in mind deals with donations to the XXXX The Order-in-Council approving the incorporation of the Corporation, which incorporation took place June 21, 1982, provides that the Corporation shall be proclaimed an agent of Her Majesty. Accordingly, it is our conclusion that donations to the Corporation would be deductible under paragraph 110(1)(b) of the Income Tax Act as gifts to Her Majesty in right of Canada.
Sections 110 and 110(1)(b) read as follows:
Section 110 "For the purposes of computing the taxable income of a taxpayer for a taxation year there may be deducted such of the following amounts as are applicable:
Section 110(l)(b) the aggregate of gifts made by the taxpayer in the year (and in the five immediately preceding taxation years, to the extent of the amount thereof that was not deductible in computing the taxable income of the taxpayer for any preceding taxation year) to Her majesty in right of Canada and Her Majesty in right of the provinces, not exceeding the amount remaining, if any, when the amount deductible for the year under paragraph (a) is deducted from the income of the taxpayer for the year, if payment of the amounts given is proven by filing receipts with the Minister that contain prescribed information;
Accordingly, it would be appreciated if you could advise me, subject to the other restrictions of Article XXI(5), if the aforementioned organization could qualify in the United States to receive deductible contributions if it were resident in the United States".
Your assistance in this matter is greatly appreciated.
Yours sincerely,
Original Signed by
P. PINKUS P. Pinkus
Director Provincial and International Relations Division
PP/jb
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© Her Majesty the Queen in Right of Canada, 1984
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© Sa Majesté la Reine du Chef du Canada, 1984
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