Donation schemes

Summary policy

Date
September 3, 2003 (Revised November 23, 2005)

Reference number
CSP-S07

Key words

Schemes

Policy statement

Donation schemes are not supported by the Canadian tax system (for example, art donation schemes). Charities involved in these types of schemes can lose their status as registered charities. The Canada Revenue Agency may disallow part or all of a claim that a donor makes on an income tax return for a gift made in a donation scheme. Also, persons involved in a donation scheme may be subject to the third-party civil penalties.

References

• Summary policy CSP-R12, Revocation
• Information Circular IC 01-1, Third-Party Civil Penalties
• Cortbaoui v. The Queen, 2003-09-04
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 163.2 and 248(1)