Penalties for False Information on Donation Receipts

Summary Policy

Date
October 25, 2002 (Revised June 14, 2007)

Reference number
CSP-R02

Key words

Receipt - Official donation receipt - Sanctions - Revocation

Policy statement

Under the Income Tax Act, a qualified donee (for example, a registered charity) can issue official donation receipts for income tax purposes for donations that legally qualify as gifts.

A registered charity that issues an official donation receipt that includes incorrect information is liable to a penalty equal to 5% of the eligible amount stated on the receipt. This penalty increases to 10% for a repeat infraction within 5 years.

A registered charity that issues an official donation receipt that includes false information is liable to a penalty equal to 125% of the eligible amount stated on the receipt, where the total does not exceed $25,000. Where the total exceeds $25,000, the charity is liable to a penalty equal to 125% and the suspension of tax-receipting privileges.

A registered charity that contravenes or continues to contravene the Act could also have its registration revoked.

References

• Summary Policy CSP-F17, Penalties
• Summary Policy CSP-R12, Revocation
• Summary Policy CSP-S17, Sanctions
• Summary Policy CSP-S18, Suspensions
• Policy Statement CPS-014, Computer-Generated Official Donation Receipts
• Guidance CG-007, Donation of gift certificates or gift cards
• Policy Commentary CPC-006, Fair Market Value of Donated Item and Taxes
• Policy Commentary CPC-008, Union Dues - Payment to a Registered Charity
• Policy Commentary CPC-009, Official Donation Receipts by a Newly Registered Charity
• Policy Commentary CPC-010, Issuing a Receipt in a Name Other than the Donor's
• Policy Commentary CPC-012, Out-of-Pocket Expenses
• Policy Commentary CPC-015, Charity's Address
• Policy Commentary CPC-017, Gifts of Services
• Policy Commentary CPC-018, Gifts Out of Inventory
• Policy Commentary CPC-019, Payment for Participation in a Youth Band or Choir
• Income Tax Technical News, Issue 26
• Registered Charities Newsletter, Issue No. 23
• Registered Charities Newsletter, Issue No. 25
• Registered Charities Newsletter, Issue No. 27
• Sample receipts
• College rabbinique de Montreal Oir Hachaim D'Tash v. Canada (Minister of the Customs and Revenue Agency) (2004 FCA 101), 2004-03-09.
• Income Tax Act, R.S.C. 1985 (5th supp.) c. 1, ss. 188.1(7) to (10) and 188.2(1).
• Income Tax Regulations, C.R.C. 1978, c. 945, ss. 3500, 3501(1) and (1.1).