Summary Policy
Date
November 3, 2005
Reference Number
CSP - E09
Key Words
Eligible donee
Policy Statement
Under the Income Tax Act, an eligible donee is a registered charity:
- that is not subject to a suspension of tax-receipting privileges;
- that is not subject to a security certificate under the Charities Registration (Security Information) Act;
- that has no unpaid liabilities under the Act or Excise Tax Act;
- that has filed all of its information returns; and
- of which more than 50% of the members of the board of directors or trustees deal at arm's length with each member of the board of directors or trustees of the particular charity.
A charity that is liable for a tax or penalty under the Act that exceeds $1,000 may satisfy that liability by transferring the amount owing to an eligible donee.
References
- Arm's Length, CSP-A07.
- Return - Registered Charity Information Return, CSP-R10.
- Revocation, CSP-R12.
- Revocation Tax, CSP-R24.
- Sanctions, CSP-S17.
- Suspension, CSP-S18.
- Income Tax Act, R.S.C. 1985 (5th supp.) c. 1, ss. 188(1.3), 189(6.2) and (6.3).
- Charities Registration (Security Information) Act, S.C. 2001, c. 41, s. 113.
- Excise Tax Act, R.S. 1985, c. E-15.
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