Summary Policy

Date
September 3, 2003 (Revised November 23, 2005)

Reference Number
CSP - S07

Key Words
Schemes

Policy Statement

Donation schemes are not supported by the Canadian tax system (e.g., art donation schemes). Charities involved in these types of schemes can lose their status as registered charities. The Canada Revenue Agency may disallow part or all of a claim that a donor makes on an income tax return for a gift made in a donation scheme. Also, persons involved in a donation scheme may be subject to the third-party civil penalties.

References

• Donor, CSP-D17.
• Gift (donation), CSP-G01.
• Revocation, CSP-R12.
• Skating on Thin Ice - Charitable Transactions that Draw the Tax Man's Attention, CES-013.
• Art Donation Schemes, or Art-flipping, Fact Sheet, November 2002.
• Be an Informed Donor, Fact Sheet, November 2005.
• Third-Party Civil Penalties, IC 01-1.
• Cortbaoui c. La Reine, 2003-09-04 (http://www.tcc-cci.gc.ca/main_f.htm).
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 163.2 and 248(1).