No. Here is CRA’s view on why such a payment cannot be receipted.
Policy Commentary
Release Date
June 23, 1993
Reference Number
CPC – 008
Subject
Gift – Whether the payment to a registered charity instead of paying union dues is voluntary and therefore considered a gift
Purpose
To clarify the Directorate’s policy regarding payments to a registered charity.
Commentary
1. A payment to a registered charity in lieu of paying union dues is not considered a gift. For example, a company employee, for religious reasons, objects to paying union dues. The collective agreement under which the employee works contains a provision allowing the employee to pay an equivalent amount to a registered charity in place of union dues. There is an expression of free will on the part of the payer only to the extent that the payment is directed to a registered charity rather than the union.
2. The payment of a sum to the union or to a charity in the context of adhering to a collective agreement can be seen as making a payment for consideration; that is, in return for paying the amount, the employee gets a job. The presence of a substantial consideration invalidates the payment as a gift.
References
• Income Tax Act, R.S.C. 1985 (5th supp.) c. 1, para. 8(1)(i).
Related Posts
April 14, 2021
If a charity official donation receipt does not have all mandatory elements then it can be invalid
In a recent Federal Court of Appeal case called Kueviakoe v. Canada, the court decided that an official donation receipt lacking certain basic or…
March 23, 2021
Upcoming Webinars for the Canadian Charity Law Association
The Canadian Charity Law Association is delivering some upcoming webinars. Registration is free but space is limited. Topics are subject to change.…
March 22, 2021
The Charities Directorate of CRA announces new webinars on gifting and receipting on March 30 and March 31.
Here is an announcement from CRA relating to new webinars dealing with gifting and receipting on March 30 and March 31, 2021. . Charities…