Tax Receipting and Return of a Gift

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•Split receipting rules proposed in 2002

•Although draft amendments to the ITA have not yet been passed, the amendments are treated by CRA as being administratively in effect

•Proposed ITA changes create a new concept of “gift” for tax purposes - permits a donor to receive a benefit, provided that the value of the property donated exceeds the benefit received by the donor

(b) Basic mechanics of split-receipting rules

•Charitable donation receipts must reflect the following:

Eligible amount of gift = FMV less advantage

•Must have a voluntary transfer of property of “ascertainable value”