Summary Policy

Date
September 3, 2003

Reference Number
CSP - N04

Key Words
Non-qualified investment

Policy Statement

A non-qualified investment is a share, right to acquire a share or debt owing to a private foundation by a person who does not deal at arm's length with the foundation.

Non-qualified investments may give rise to tax payable by the debtor if the private foundation receives interest or dividends on them falling short of an amount based on the prescribed rate.

References

• Debt, CSP - D06.
• Prescribed Stock Exchange, CSP - P17.
• Share, CSP - S04.
• Tax, CSP - T01.
• Non-Qualified Investment, CIL-1998-007.
• Completing the Registered Charity Information Return, T4033A.
• Part V Tax Return - Tax on Non-Qualified Investments of a Registered Charity, T2140.
• Registered Charities and the Income Tax Act, RC4108.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 149.1(1) and 189(1).