Words and Phrases - "don"

a
86
b
44
c
76
d
50
e
38
f
31
g
18
h
14
i
73
j
2
k
2
l
32
m
56
n
25
o
38
p
80
q
3
r
76
s
89
t
46
u
15
v
9
w
23
y
2

16 April 2013 External T.I. 2013-0477981E5 F - Interpretation of Gift

Summary Under
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts
ability to opt out of a compulsory contribution to an employer-aligned charity would not necessarily establish a “gift”/Quebec “gift” is CCQ “donation”

A Quebec collective agreement requires each employee to annually pay a specified amount to a pre-established registered charity whose mission supports that of the employer, which also is charitable. In a variation (the second situation), an employee may opt out of the obligatory contribution by written notice. Would these contributions qualify as gifts?

After stating that

what constitutes a “donation” in civil law is a “don” for the purposes of the Act

CRA stated (respecting the first situation):

[T]he employees are subject, by virtue of the collective agreement, to an obligation to remit a predetermined annual amount to the foundation, which prevents the remitted amount from being a donation.

Respecting the option in the second situation:

[This] would not suffice, by itself, to be able to conclude that an employee who had not exercised the option had necessarily made a donation. … [One should] determine the reasons for not having made a written request and … if there was an intention to make a donation.

Words and Phrases
gift don