CRA Posts a New Informational Gifting and Receipting Video
On October 26, 2016, Canada Revenue Agency (“CRA”) posted a new video series to assist registered charities and qualified donees make sense of donation receipts. The new video, “Gifting and Receipting 101,” explains what does and does not qualify as a gift, including both cash gifts and gifts in kind, as well as what conditions must be met in order for registered charities and qualified donees to issue donation receipts. These conditions include: 1) a transfer of property from a donor to a qualified donee; 2) the gift be made voluntarily; 3) the determination of the fair market value of the gift; and 4) that the benefit or advantage to the donor cannot be worth more than 80% of the value of the donation. This gifting and receipting video also explains how registered charities and qualified donees are to determine the amount to report on a donation receipt, and includes an explanation of the terms “fair market value”, “advantage” and the “de minimis rule”. Additionally, a reference tool, as well as a number of examples of gifting and receipting, are provided throughout the video for both illustrative purposes and to assist registered charities and qualified donees when issuing donation receipts.
Split-receipting and Deemed Fair Market Value
On November 8, 2016, CRA updated the Chapter History of S7-F1-C1, Split-receipting and Deemed Fair Market Value. In doing so, CRA indicated that Income Tax Folio S7-F1-C1, Split-receipting and Deemed Fair Market Value replaces and cancels Interpretation Bulletin IT-110R3, Gifts and Official Donation Receipts and Income Tax Technical News No. 26 (ITTN 26).
Aside from consolidating content and improving readability, the update also lists noteworthy substantive technical and interpretative changes to the Income Tax Act and Income Tax Act Regulations. CRA will be accepting comments on the Chapter until February 8, 2017.
Update to the Guide for the T3010 Registered Charity Information Return
On November 11, 2016, CRA updated the Guide for the T3010 Registered Charity Information Return to reflect the most recent amendments to the T3010 itself. Of note to registered charities that have invested in limited partnerships in accordance with recent amendments to the Income Tax Act, the Guide now reflects that a new reporting requirement related to such investments has been added to the T3010. Furthermore for these charities, specifically ones with fiscal periods ending on December 31, 2015, they will be required to answer a new question included on the insert 15-122: New reporting requirement concerning investments in limited partnerships.
Form T2081 will No Longer be Mailed to Affected Charities
The Form T2081 – Excess Corporate Holdings Worksheet for Private Foundations will no longer be mailed to affected charities. A saveable and printable version is available on the CRA website.
Reminder of the Political Activities Consultations – Extended Comment Period
As reported in the September and October 2016 Charity Law Updates, on September 27, 2016, CRA, together with the Minister of National Revenue, announced public consultations to “clarify the rules regarding the involvement of registered charities in political activities.”
In this regard, in relation to the development of new guidance or educational resources for charities on the rules governing political activities, CRA has extended the deadline to receive online comments until December 14, 2016. While the consultation is open to anyone to provide feedback, it provides an important opportunity for registered charities to be able to provide their comments on CRA’s existing policy guidance on political activities and address issues faced by registered charities in carrying out such activities. Also note that Ottawa has been added to the locations of in-person consultations as of
November 22, 2016.