New Prescribed Donee Named
The Department of Finance has used an administrative power under the Income Tax Act to allow an American charity, the American Friends of Canadian Land Trusts, “prescribed donee” status. This designation allows U.S. residents to get domestic tax relief when...
Court Decisions Clarify Rights of Non-Profit Directors to Pay Legal Fees During Receivership
The December 2009 decision of the Ontario Court of Appeal in Peterborough (City) v. Kawartha Native Housing Society Inc. is significant in clarifying the right of the boards of directors of non-profit corporations in receivership to retain legal counsel and...
Accountants and Tax Preparers Beware: Zero Tolerance has Truly Arrived
The recent decision of the Ontario Court of Appeal in R. v. Leo-Mensah confirms that courts will take a strict approach when sentencing tax advisors found to have engaged in the preparation or provision of false donation receipts. Between the...
Director Indemnification for Unsuccessful Membership Dispute
A recent decision of the Court of Appeal for Ontario confirms that the directors of a charity are entitled to indemnification by the charity for costs where indemnification is provided for in the charity’s constitution. For more information on indemnification...
Transfer of Charitable Donation Tax Credits
The CRA has extended its administrative position with respect to the transfer of donation tax credits from one spouse or common law partner to the other. In a technical interpretation released by the CRA on September 13, 2010 (CRA document...
Federal Court of Appeal Confirms Pastoral Agents not Eligible for Clergy Residence Deduction
In the February 2009 edition of this newsletter we reported on the Tax Court of Canada decision in Proulx v. Her Majesty The Queen. That case was an appeal from an assessment denying Ms. Proulx’s clergy residence deduction claim pursuant...
Proposed Information Reporting Regime for Aggressive Tax Planning
Background With the release of the Federal Budget on March 4, 2010, the Department of Finance announced a public consultation process related to a new proposed information reporting regime for tax avoidance transactions. The stated purpose of the proposed information...
Upcoming Seminars in Southwestern Ontario and Toronto
Southwestern Ontario Miller Thomson’s Southwestern Ontario Charities and Not-for-Profit Group will be hosting a complimentary seminar on November 25, 2010 from 8:30-11 a.m. at the Hilton Garden Inn, 746 Old Hespler Road in Cambridge, Ontario. Speakers will include Blair Botsford,...
Thrift Shop Consignment Arrangements
A number of charities in Canada operate “thrift stores”, loosely defined as not-for-profit stores selling low-cost clothing or other items with the aim of providing affordable shopping alternatives to those in need. Inventory is often composed of donated previously used...
International Organizations Should Consider CIDA Funding
It may surprise international organizations to learn that the Canadian International Development Agency (“CIDA”) does not limit its funding to Canadian organizations. International organizations engaged in development work worldwide may be eligible for CIDA funding for their work abroad. CIDA’s...
