Budget 2010 DQ Reform – Anti Avoidance
Provisions
•Non-Arm’s Length Inter-Charity
Gifts
–For non-arms-length
inter-charity gifts –recipient charity must expend 100% of
the gift in the year or in the following year
–Possible penalty of 110% of
amount of gift not expended and/or possible revocation of registered charity
status
–Can be avoided is gift is
declared to be a “designated gift”
–If a “designated gift”, it
cannot count toward satisfying DQ requirements of
transferor charity
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