Vol. 139, No. 44 — October 29, 2005

Regulations Amending the Income Tax Regulations

Statutory authority

Income Tax Act

Sponsoring agency

Canada Customs and Revenue Agency

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

Section 600 of the Income Tax Regulations sets out those elections in the Income Tax Act and the Income Tax Regulations for which the Minister may grant an extension to file, amend or revoke. On June 29, 2005, amendments to section 600 were published in Part II of the Canada Gazette as SOR/2005-185. These amendments inadvertently repealed amendments to section 600 that were published in Part II of the Canada Gazette on May 3, 2005, as SOR/2005-123. This proposal corrects that error.

Schedule VIII to the Regulations lists universities outside Canada, the student body of which ordinarily includes students from Canada. Donations to these universities qualify as charitable donations for income tax purposes. These amendments add to that list the names of additional universities that have been found to qualify and change the address of a university currently on the list.

Alternatives

No alternatives were considered to correcting the previous error with respect to section 600.

No alternatives were considered to the amendments to Schedule VIII. Subparagraph 110.1(1)(a)(vi) and paragraph (f) of the definition of "total charitable gifts" in subsection 118.1(1) of the Income Tax Act require that the universities, the student body of which ordinarily includes students from Canada, be identified by regulation.

Benefits and costs

The amendments to section 600 correct a previous error. There are no costs to taxpayers or the Canada Customs and Revenue Agency (CCRA).

The amendments to Schedule VIII will permit corporate taxpayers who make donations to the universities added to the list by the amendments to deduct the donations in calculating their taxable income. Donations by an individual will be eligible for a tax credit, which will reduce the individual's tax liability.

Consultation

No consultation took place.

The error in section 600 must be corrected.

The list of qualifying universities is amended from time to time based on requests received from universities that they be considered for inclusion in the list.

Compliance and enforcement

There are no compliance or enforcement issues with the correction to section 600.

The CCRA ensures compliance by a review of deductions and tax credits claimed for donations to universities outside Canada.

Contact

Mr. Grant Wilkinson, Legislative Policy Directorate, CCRA, Place de Ville, Tower A, 22nd Floor, 320 Queen Street, Ottawa, Ontario K1A 0L5, (613) 957-2079, grant.wilkinson@ccra-adrc.gc.ca (email).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subparagraph 110.1(1)(a)(vi) (see footnote a), paragraph (f) (see footnote b) of the definition "total charitable gifts" in subsection 118.1(1) and section 221 (see footnote c) of the Income Tax Act (see footnote d), proposes to make the annexed Regulations Amending the Income Tax Regulations.

Interested persons may make representations with respect to the proposed Regulations within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Grant Wilkinson, Policy and Planning Branch, Canada Customs and Revenue Agency, 22nd Floor, Tower A, Place de Ville, 320 Queen Street, Ottawa, Ontario K1A 0L5.

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

Ottawa, October 24, 2005

DIANE LABELLE 
Acting Assistant Clerk of the Privy Council 

REGULATIONS AMENDING THE INCOME TAX REGULATIONS

AMENDMENTS

1. (1) Paragraphs 600(b) and (c) of the Income Tax Regulations (see footnote 1) are replaced by the following:

(b) subsections 7(10), 12.2(4), 13(4), (7.4) and (29), 14(6), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 70(6.2), (9), (9.1), (9.2) and (9.3), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(5.3) and (14), 143(2), 146.01(7), 164(6) and (6.1), 184(3) and 256(9) of the Act;

(c) paragraphs 12(2.2)(b), 56.3(4)(c), 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 86.1(2)(f) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act;

(2) Paragraph 600(b) of the Regulations is amended by adding, in numerical order, the reference "20(24),".

2. (1) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

California Institute of the Arts, Valencia, California

(2) Section 1 of Schedule VIII to the Regulations is amended by striking out the following:

Life Chiropractic College West, San Lorenzo, California

(3) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

D'Youville College, Buffalo, New York

Georgetown University, Washington, District of Columbia

Life Chiropractic College West, Hayward, California

University of St. Thomas, St. Paul, Minnesota

3. Section 2 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Heriot-Watt University, Edinburgh, Scotland

4. Section 9 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

American University of Beirut, Riad El Solh Beirut

5. Section 19 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

University of Cape Town, Rondebosch

6. Section 22 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

University of Auckland, The, Auckland

7. Schedule VIII to the Regulations is amended by adding the following after section 24:

25. The university situated in Estonia that is prescribed by section 3503 is the following:

University of Tartu, Tartu

COMING INTO FORCE

8. (1) Subsection 1(2) is deemed to have taken effect on January 1, 2001.

(2) Subsection 2(1) and sections 4 and 6 are deemed to have taken effect on January 1, 2003.

(3) Subsections 2(2) and (3) and sections 3, 5 and 7 are deemed to have taken effect on January 1, 2004.

(4) Subsection 1(1) is deemed to have taken effect on June 1, 2005.

[44-1-o]

Footnote a

S.C. 1998, c. 19, s. 20(1)

Footnote b

S.C. 1994, c. 7 (Sch. II, s. 88(1))

Footnote c

S.C. 2000, c. 12, s. 142 (Sch. 2, par. 1(z.34))

Footnote d

R.S., c. 1 (5th Supp.)

Footnote 1

C.R.C., c. 945

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with hypertext language (HTML). Its content is very similar except for the footnotes, the symbols and the tables.

	Top of page
Maintained by the Canada Gazette Directorate	Important notices