The cartoonist Andrew Donato donated his cartoons and claimed a tax credit for the fair market value of them. The CRA didn’t dispute the amount of the credit he could claim, but it took the position that he had realized a capital gain on making the gift. The Tax Court agreed with the CRA in Donato v. The Queen, 2009 TCC 590.
Retail Loses Again
Taxpayers who participated in ‘retail’ donation tax shelters continue to fare poorly in the Tax Court. See Maréchaux v. The Queen, 2009 TCC 587.
Related Business
A charity cannot carry on a business unless it is a “related business”, which is a business that is related to the objects of the charity and that employs only volunteers. After the decision in Alberta Institute on Mental Retardation…
Webcasts
The CRA has produced a number of webcasts aimed at charities, to help them with their compliance burdens.
Fundraising
The CRA has issued new guidelines on fundraising for charities.
De-registered
The CRA has revoked the status of two more charities that had participated in tax shelters.
$2.5 billion
The CRA continues to talk tough on donation tax shelter schemes. And why shouldn’t it? Its boast that “In 2008, Canadian courts have continued to confirm the CRA’s position with respect to these schemes” is accurate. What I find disturbing…
Redeemer Unredeemed
The Supreme Court of Canada today issued its decision in Redeemer Foundation v. Canada (National Revenue), 2008 SCC 46. Four members of a seven-person panel rejected the charity’s appeal from the decision of the Federal Court of Appeal.
Not-for-profit
BBM Canada v. The Queen, 2008 TCC 341, is a surprise, not because of the result but because of the novel position advanced by the Crown in support of the assessment in question. The organization assessed had taken the position that it was exempt from tax under paragraph 149(1)(l) of the Income Tax Act because it was a not-for-profit. The CRA thought otherwise.
Another loss
Another tax shelter case, another loss for the taxpayer: see Norton v. The Queen, 2008 TCC 91. It’s clear that the courts have little patience for these schemes, which is a real problem for those trying to promote legitimate shelters.…