Receipting by Canadian Registered Charities

June 29, 2016

Canadian registered charities no longer required to register as a charity in Quebec

As a result of the 2016 Quebec Budget, Canadian registered charities are no longer required to complete a separate charitable registration in Quebec in order to be able to issue tax receipts to donors in Quebec.

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May 26, 2016

CRA letter on donation of capital property and donation receipt

CRA recently released a letter which discusses whether an official receipt issued for property donated in kind can include an amount less than the fair market value of the property.  CRA cited section 3501 of the Income Tax Act (Canada) Regulations to confirm that an official donation receipt should include the amount of the fair market value or the deemed fair market value of the property, in certain circumstances.  

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May 10, 2016

Application for leave to appeal denied by SCC in Ray Castro v. Her Majesty the Queen

We have previously blogged about the decision of the Tax Court of Canada in David, R. et al. v. the Queen (TCC) (herehere and here).  In the previous decision of Canada v. Castro, 2015 FCA 225, the Minister appealed the decision in David v. The Queen by asserting that the Tax Court of Canada erred in law.

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March 23, 2016

CAGP Advanced Canadian Gift Planning Course in Toronto

The CAGP will be offering an Advanced Canadian Gift Planning Course in Toronto from June 1-3, 2016.

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March 22, 2016

2016 Federal Budget and its impact on non-profits and charities

Today the new Liberal Government has delivered their first budget.  Here is our article 2016 Canadian Federal Budget - How will it affect the Canadian charitable sector?

March 16, 2016

Recent FCA decision French v. Canada, 2016 FCA 64

In a recent decision of the Federal Court of Appeal, French, it dealt with a technical issue of whether an argument should be struck, as it was by the Tax Court judge, "on the basis that it was doomed to fail" or there was not "a glimmer of a legal basis”.  The Federal Court of Appeal concluded in this case that "it is not plain and obvious that the impugned plea cannot succeed and that the appeal should accordingly be allowed."  It is a very high threshold for a party to have part of a pleading be struck and this did not meet that "no chance of success" line.   

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February 23, 2016

Should a registered charity issue an official donation receipt for gifts from a qualified donee

We get this question often.   If a registered charity receives funds from a qualified donee then it should not issue an official donation receipt.  For example a private foundation sends your registered charity a cheque for $10,000.00.   Do you issue them an official donation receipt?  The answer is no.

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February 12, 2016

National Post - ‘Can I get a tax receipt?’: Tax confusion muddles Syrian refugee sponsorship efforts

On February 11, 2016, the National Post had an article entitled "‘Can I get a tax receipt?’: Tax confusion muddles Syrian refugee sponsorship efforts".  The article discusses some of the complexity around the current receipting rules and how they have created confusion for registered charities in certain cases when fundraising for Syrian refugees in Canada.  The National Post references a proposal that I have made to provide greater clarity to the rules.

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February 03, 2016

R. v. Raza, -using criminal courts to crackdown on charity fraud

There was recent case of R. v. Raza, 2015 BCSC 2512 (CanLII).  The three accused were tax preparers who were charged with fraud for allegedly being involved with the issuance of false donation receipts. 

January 25, 2016

CRA adds guidance on “Assisting people affected by the conflict in Syria”

Many Canadian charities and donors wish to assist Syrian refugees and those affected by the conflict.  CRA has just released guidance to assist donors and charities understand their legal obligations.

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January 21, 2016

Canada v. Scheuer, - CRA not responsible for bad shelters that have tax shelter numbers

In the recent case of Canada v. Scheuer, 2016 FCA 7 the Federal Court of Appeal sided with CRA.  A number of people who had invested in abusive tax shelter arrangements sued CRA because CRA had issued a tax shelter number.  The FCA concluded that CRA had no alternative but to issue the tax shelter number and such number does not mean that the tax shelter works. CRA does not have a duty to warn "investors" that a scheme like GLGI is suspect.  Although I might add that CRA does warn people not to invest in these schemes. Also the FCA suggested "the plaintiffs acknowledge that they received independent legal opinions, opinions from accountants and valuation appraisals in respect of the tax shelter. The issuers of such opinions, who benefited financially from the provision of their professional advice, are better placed to indemnify the plaintiffs in the event of negligence in the exercise of their professional responsibilities."   In other words the FCA is encouraging those who invested in these schemes to sue the lawyers, accountants and valuators who provided opinions and appraisals if they were negligent. 

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January 19, 2016

Charity Village webinar “Top 20 Compliance Issues for Canadian Charities”

I will be presenting a webinar for Charity Village on January 28, 2016 on Top 20 Compliance Issues for Canadian Charities.

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December 16, 2015

V. Ross Morrison v. The Queen -deals with Canadian Humanitarian Trust and Canadian Gift Initiative

The Honourable Justice F.J. Pizzitelli of the Tax Court of Canada dealt with a motion in V. Ross Morrison v. The Queen. The court dismissed the motion with costs. The cases deals with the Canadian Humanitarian Trust (“CHT”) and Canadian Gift Initiative (“CGI”) which CRA would describe as abusive charity gifting tax schemes.   Mr. Morrison had wanted that the CRA to "disclose or produce for inspection the names and municipal and/or email addresses of all persons who have filed Objections to the Reassessments in the CHT and CGI Donation Programs and whose Objections have not been resolved (the “Outstanding Objectors”);" The court noted "I do not agree with any of the Appellant’s arguments. The Appellant has neither provided nor argued any legal precedent that supports his position on any of these issues. There is ample precedent against."

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December 04, 2015

CRA Revokes the Registration of Le Refuge des Rescapes for involvement in tax shelter scheme

Today the Canada Revenue Agency announced the revocation of the registration of of the Canadian registered charity Le Refuge des Rescapes for issuing over $2 million in official donation receipts connected with an abusive charity gifting tax scheme. 

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November 25, 2015

CRA initiative “Protect yourself against fraud”

It is interesting to see that CRA used to refer to "abusive charity gifting tax schemes" and they appear to be lumping them in with fraud.  "Meet Mary & William. Mary and William are a married couple with kids. They have fallen victim to a donation tax shelter scheme. Find out more about Mary and William’s story and how you can protect yourself against fraud."

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November 02, 2015

Successful appeal by CRA in Canada v. Castro, 2015 FCA 225

We have previously blogged about the decision of the Tax Court of Canada in David, R. et al. v. the Queen (TCC) (here and here). In this decision, the court allowed the appeals of the respondents relating to tax credits that had been previously disallowed by the Minister of National Revenue for gifts the respondents had made to CanAfrica International (CanAfrica), a registered charity, in 2006 (each of the respondents was issued an inflated tax receipt by CanAfrica).  

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October 26, 2015

GLGI abusive charitable gifting tax scheme slammed in Tax Court of Canada

In the case Mariano v. The Queen 2015 TCC 244 the Honourable Justice F.J. Pizzitelli reviewed in great detail the Global Learning Trust (2004) and the Global Learning Gift Initiative (GLGI) program.  These programs are what CRA calls abusive charity gifting tax schemes.  For those interested in the regulation of charities and the definition of gift this is a must read case.  It discusses gifts and donative intent, fair market value and valuation reports.  Mr. Justice F.J. Pizzitelli goes into great detail and analyzes the various positions, their expert witnesses and the conduct of the promoter's advisors.

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October 09, 2015

CRA letters to Trinity Global Support Foundation on reasons for revocation

The Trinity Global Support Foundation was recently revoked.   It received some media attention because of the involvement of the former mayor of London, Ontario in the charity.  Here are the letters from CRA explaining the detailed reasons for revocation of Trinity Global Support Foundation.  We blogged on this charity before at "CRA revokes Trinity Global Support Foundation as a charity" and "FCA case on Trinity Global Support Foundation - CRA wins again"

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October 09, 2015

CRA letters to Canadian Friends of Pearl Children about reasons for revocation

CRA recently revoked the registration of Canadian Friends of Pearl Children.   Here are the CRA letters to the charity.  According to CRA the organization issued over $167 million in inappropriate official donation receipts.  On July 20, 2015 I blogged about the revocation of Canadian Friends of Pearl Children.  

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October 08, 2015

Recent CRA letters of revocation for Canadian registered charities

Here are the CRA letters from a number of recent Canadian registered charity revocations, annulments and penalties.  These letters from CRA cover many different grounds for de-registration or the imposition of penalties.   

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September 14, 2015

Humber Fundraising Management Course “Ethical and Legal Issues”

Mark Blumberg will be team teaching, with Valerie Campbell and Sharilyn Hale, the Humber Fundraising Management Course "Ethical and Legal Issues".  It was previously taught by Ken Wyman so we will have big shoes to fill.    

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September 12, 2015

Another class action lawsuit launched for inflated receipts as part of tax shelter -Ideas Canada Fdn

A class action lawsuit was commenced on August 18, 2015 in Vancouver against numerous parties involved with a tax shelter scheme related to the Ideas Canada Foundation for the taxation years 2001, 2002 and 2003.   Those who invested in those schemes are upset that CRA did not accept the tax receipts and the "investors" lost their tax savings and/or out of pocket expenditures.  There are 8 defendants in the matter.

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July 31, 2015

Guindon v. Canada - SCC upholds third party civil penalties under the ITA

In the recent Supreme Court of Canada decision Guindon v. Canada - 2015 SCC 41 the SCC has upheld the third party civil penalties provided under the Income Tax Act.

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July 20, 2015

CRA revokes the registration of the Canadian Friends of Pearl Children

The CRA has revoked the Canadian Friends of Pearl Children for involvement with what CRA would term an abusive charity gifting tax scheme.  

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July 03, 2015

“Top 20 Charity Law Issues for Canadian Registered Charities” in Ottawa July 15

On July 15, 2015 Mark Blumberg will be delivering a 2 hour presentation entitled "Top 20 Charity Law Issues for Canadian Registered Charities" in Ottawa.  The presentation is complimentary but if you are interested in attending you should register here.

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Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

mark@blumbergs.ca
416.361.1982
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