[Update August 23, 2024 – now CRA has released further explanatory notes including Explanatory Notes to Legislative Proposals and further Explanatory Notes to the Legislative Proposals Relating to the Income Tax Act and Regulations – August 2024 and I have added relevant pieces at the bottom of this note.]
The Dept. of Finance on August 12, 2024 released certain Legislative proposals and explanatory notes relating to various statutes, and this includes a large number of more technical changes relating to charities that were announced in the 2024 Federal Budget.
Here are the proposals:
Charities and Qualified Donees
1 (1) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:
registered foreign charity means a person described in subparagraph (a)(v) of the definition qualified donee in this subsection; (organisme de bienfaisance etranger enregistre)
(2) Subsection 149.1(6.3) of the Act is replaced by the following:
Designation as public foundation, etc.
(6.3) The Minister may, by notice sent by registered mail, or electronically if authorized in accordance with subsection 244(14.3), to a registered charity, on the Minister’s own initiative or on application made to the Minister in prescribed form, designate the charity to be a charitable organization, private foundation or public foundation and the charity shall be deemed to be registered as a charitable organization, private foundation or public foundation, as the case may be, for taxation years commencing after the day of mailing or sending of the notice unless and until it is otherwise designated under this subsection or its registration is revoked under subsection (2), (3), (4), (4.1) or 168(2).
(3) Section 149.1 of the Act is amended by adding the following after subsection (14.1):
Information returns
(14.2) Every registered foreign charity must, within six months from the end of each taxation year of the charity and without notice or demand, file with the Minister a public information return for the year in prescribed form and containing prescribed information.
(4) Paragraph 149.1(15)(a) of the Act is replaced by the following:
(a) the information contained in a public information return referred to in subsection (14), (14.1) or (14.2), and the filing status of information returns required by that subsection, must be communicated or otherwise made available to the public by the Minister in such manner as the Minister considers appropriate;
(5) Subsection 149.1(22) of the Act is replaced by the following:
Refusal to register
(22) The Minister may by mail, or electronically if authorized in accordance with subsection 244(14.3), give notice to a person that the application of the person for registration as a qualified donee referred to in subparagraph (a)(i) or (iii) or any of paragraphs (b) to (c) of the definition qualified donee in subsection (1) is refused.
(6) Subsection 149.1(23) of the Act is replaced by the following:
Annulment of registration
(23) The Minister may by registered mail, or electronically if authorized in accordance with subsection 244(14.3), give notice to a person that the registration of the person as a registered charity is annulled and deemed not to have been so registered, if the person was so registered by the Minister in error or the person has, solely as a result of a change in law, ceased to be a charity.
(7) The portion of subsection 149.1(26) of the Act before paragraph (a) is replaced by the following:
Foreign charities
(26) For the purposes of subparagraph (a)(v) of the definition qualified donee in subsection (1), the Minister may register, in consultation with the Minister of Finance, a foreign charity for a 36-month period that includes the time at which His Majesty in right of Canada has made a gift to the foreign charity, if
(8) Subsections (1) and (3) are deemed to have come into force on April 17, 2024 and apply to taxation years that begin on or after that day.
(9) Subsection (7) applies to registrations after April 16, 2024.
2 (1) The portion of subsection 168(1) of the Act before paragraph (a) is replaced by the following:
Notice of intention to revoke registration
168 (1) The Minister may by registered mail, or electronically if authorized in accordance with subsection 244(14.3), give notice to a person described in any of paragraphs (a) to (c) of the definition qualified donee in subsection 149.1(1) that the Minister proposes to revoke its registration if the person
(2) Paragraph 168(1)(c) of the Act is replaced by the following:
(c) in the case of a registered charity, registered foreign charity, registered Canadian amateur athletic association or registered journalism organization, fails to file an information return as and when required under this Act or a regulation;
(3) Subsection 168(2) of the Act is replaced by the following:
Revocation of registration
(2) If the Minister gives notice under subsection (1) to a registered charity, a registered Canadian amateur athletic association or a registered journalism organization,
- if it has applied to the Minister in writing for the revocation of its registration, the Minister shall, forthwith after the mailing or sending of the notice, publish a copy of the notice on an internet webpage of the Government of Canada, and on that publication of a copy of the notice, the registration is revoked;
- in any other case, the Minister may, after the expiration of 30 days from the day of mailing or sending of the notice, or after the expiration of such extended period from the day of mailing or sending of the notice as the Federal Court of Appeal or a judge of that Court, on application made at any time before the determination of any appeal pursuant to subsection 172(3) from the giving of the notice, may fix or allow, publish a copy of the notice on an internet webpage of the Government of Canada, and on that publication of a copy of the notice, the registration is revoked; and
- the Minister shall maintain a permanent record of the notice and make the notice available to the public in such manner as the Minister considers appropriate.
(4) The portion of subsection 168(4) of the Act before paragraph (a) is replaced by the following:
Objection to proposal or designation
(4) A person may, on or before the day that is 90 days after the day on which the notice was mailed or sent, serve on the Minister a written notice of objection in the manner authorized by the Minister, setting out the reasons for the objection and all the relevant facts, and the provisions of subsections 165(1), (1.1) and (3) to (7) and sections 166, 166.1 and 166.2 apply, with any modifications that the circumstances require, as if the notice were a notice of assessment made under section 152, if
3 Subsection 188.1(6) of the Act is replaced by the following:
Failure to file information returns
(6) Every registered charity, registered foreign charity, registered Canadian amateur athletic association and registered journalism organization that fails to file a return for a taxation year as and when required by subsection 149.1(14), (14.1) or (14.2) is liable to a penalty equal to $500.
4 (1) The portion of subsection 188.2(1) of the Act before paragraph (a) is replaced by the following:
Notice of suspension with assessment
188.2 (1) The Minister shall, with an assessment referred to in this subsection, give notice by registered mail, or electronically if authorized in accordance with subsection 244(14.3), to a registered charity, registered Canadian amateur athletic association or registered journalism organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the day on which the notice is mailed or sent, if the Minister has assessed the charity, association or organization for a taxation year for
(2) The portion of subsection 188.2(2) of the Act before paragraph (a) is replaced by the following:
Notice of suspension — general
(2) The Minister may give notice by registered mail, or electronically if authorized in accordance with subsection 244(14.3), to a person referred to in any of paragraphs (a) to (c) of the definition qualified donee in subsection 149.1(1) that the authority of the person to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the day on which the notice is mailed or sent
(3) Subsection 188.2(2.1) of the Act is replaced by the following:
Suspension – failure to report
(2.1) If a registered charity, a registered foreign charity, a registered Canadian amateur athletic association or a registered journalism organization fails to report information that is required to be included in a return filed under subsection 149.1(14), (14.1) or (14.2), the Minister may give notice by registered mail, or electronically if authorized in accordance with subsection 244(14.3), to the charity, association or organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended from the day that is seven days after the day on which the notice is mailed or sent until such time as the Minister notifies the charity, association or organization that the Minister has received the required information in prescribed form.
(4) Paragraph 188.2(3)(a) of the English version of the Act is replaced by the following:
(a) the qualified donee is deemed, in respect of gifts made and property transferred to the qualified donee within the one-year period that begins on the day that is seven days after the day on which the notice is mailed or sent, not to be a qualified donee for the purposes of subsections 110.1(1) and 118.1(1) and Part XXXV of the Income Tax Regulations;
and
5 Subsection 189(8) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:
(b) the reference in each of subsections 165(2) and 166.1(3) to the expression “Chief of Appeals in a District Office or a Taxation Centre” is to be read as a reference to the expression “Appeals Branch”; and
(c) despite subsections 165(2) and 166.1(3), a person may serve a notice of objection under subsection 165(1) or make an application under subsection 166.1(1) in any manner authorized by the Minister.
6 Section 244 of the Act is amended by adding the following after subsection (14.2):
Electronic notice — qualified donees
(14.3) Despite subsection (14.2), a notice issued under any of subsections 149.1(6.3), (22) or (23), subsection 168(1) or subsections 188.2(1), (2) or (2.1) that is made available in electronic format such that it can be read or perceived by an individual or a computer system or other similar device, and that refers to the business number, trust account number or registration number of a person, is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of a business number, trust account number or registration number of the person, if the person has authorized that notices may be made available in that manner and has not at least 30 days before that date revoked that authorization in a manner specified by the Minister.
7 Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
registered foreign charity has the meaning assigned by subsection 149.1(1). (organisme de bienfaisance etranger enregistre)
8 (1) Paragraph 3501(1)(d) of the Regulations is repealed.
(2) Paragraph 3501(1)(e.1) of the Regulations is amended by adding “and” at the end of subparagraph (i), by removing “and” at the end of subparagraph (ii) and by repealing subparagraph (iii).
(3) Paragraph 3501(1)(g) of the Regulations is replaced by the following:
(g) the name and address of the donor including, in the case of an individual, the individual’s first name;
(4) Paragraph 3501(1)(i) of the Regulations is replaced by the following:
(i) the signature, as provided in subsection (2), (3) or (3.2), of a responsible individual who has been authorized by the organization to acknowledge gifts; and
(5) Paragraph 3501(1)(j) of the Regulations is replaced by the following:
(j) the name and Internet webpage of the Canada Revenue Agency.
(6) Paragraph 3501(1.1)(c) of the Regulations is repealed.
(7) Paragraph 3501(1.1)(e) of the Regulations is amended by adding “and” at the end of subparagraph (i), by removing “and” at the end of subparagraph (ii) and by repealing subparagraph (iii).
(8) Paragraph 3501(1.1)(g) of the Regulations is replaced by the following:
(g) the name and address of the donor including, in the case of an individual, the individual’s first name;
(9) Paragraph 3501(1.1)(i) of the Regulations is replaced by the following:
(i) the signature, as provided in subsection (2), (3.1) or (3.2), of a responsible individual who has been authorized by the other recipient of the gift to acknowledge donations; and
(10) Paragraph 3501(1.1)(j) of the Regulations is replaced by the following:
(j) the name and Internet webpage of the Canada Revenue Agency.
(11) Subsection 3501(2) of the Regulations is replaced by the following:
(2) Except as provided in subsection (3), (3.1) or (3.2), every official receipt shall be signed personally by an individual referred to in paragraph (1)(i) or (1.1)(i).
(12) Section 3501 of the Regulations is amended by adding the following after subsection (3.1):
(3.2) Where an official receipt is electronically issued, it may contain a digital signature if
(a) it has a unique serial number; and
(b) it is issued and sent in a secure and non-editable format.
(13) Subsection 3501(5) of the Regulations is replaced by the following:
(5) A spoiled official receipt must be marked “cancelled” or “void” and such receipt must be retained by the registered organization or the other recipient of a gift as part of its records.
In addition, in Legislative Proposals Relating to the Income Tax Act and the Income Tax Regulations they provided:
33 Paragraph 149.1(1.1)(d) of the Act is replaced by the following:
- (d) expenditures on administration, management and fundraising of the charity.
- 34 (1) Paragraph 150(1.1)(a) of the Act is replaced by the following:
- (a) the taxpayer was a registered charity throughout the year; or
- (2) Paragraphs 150(1.2)(b) and (c) of the Act are replaced by the following:
- (b) holds assets with a total fair market value that does not exceed $50,000 throughout the year;
- (b.1) meets the following conditions:
- (i) each trustee is an individual,
- (ii) each beneficiary is an individual and is related to each trustee, and
- (iii) the total fair market value of the property of the trust does not exceed $250,000 throughout the year and the only assets held by the trust throughout the year are one or more of
- (A) money,
- (B) a guaranteed investment certificate issued by a Canadian bank or trust company incorporated under the laws of Canada or of a province,
- (C) a debt obligation described in paragraph (a) of the definition fully exempt interest in subsection 212(3),
- (D) debt obligations issued by
- (I) a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada,
- (II) a corporation the shares of which are listed on a designated stock exchange outside Canada, or
- (III) an authorized foreign bank that are payable at a branch in Canada of the bank,
- (E) a share, debt obligation or right listed on a designated stock exchange,
- (F) a share of the capital stock of a mutual fund corporation,
- (G) a unit of a mutual fund trust,
- (H) an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)),
- (I) an interest as a beneficiary under a trust, all the units of which are listed on a designated stock exchange,
- (J) personal-use property of the trust, or
- (K) a right to receive income on property described in clauses (A) to (J); and
- (c) is required under the relevant rules of professional conduct or the laws of Canada or a province to hold funds for the purposes of an activity that is regulated under those rules or laws, provided
- (i) the trust is not maintained as a separate trust for a particular client or clients, or
- (ii) the only assets held by the trust throughout the year are money with a value that does not exceed $250,000;
44 Paragraph (c) of the description of B in subsection 188(1.1) of the Act is replaced by the following:
- (c) an amount in respect of a property transferred by the charity during the winding-up period and not later than the latter of one year from the end of the taxation year and the day, if any, referred to in subparagraph (1.2)(b)(iii), to a person that was at the time of the transfer an eligible donee in respect of the charity, equal to the amount, if any, by which the fair market value of the property, when transferred, exceeds the consideration given by the person for the transfer.
Explanatory Notes 1:
Clause 44
Revocation tax
ITA
188(1.1)(c)
Subsection 188(1.1) imposes a tax payable in respect of the revocation of the charity’s registration. Consequential to the most recent amendment to subsection 188(1.2), paragraph 188(1.1)(c) is amended to replace the reference to “paragraph (1.2)(c)” with a reference to “subparagraph (1.2)(b)(iii)”.
Non-arm’s length transaction
ITA
248(36)
Subsection 248(35) deems the fair market value of a donated property under certain circumstances to be equal to certain amounts specified in subsection 248(36).
Subsection 248(36) is amended to clarify that, for the purpose of applying subsection 248(35) to the taxpayer, in the case of a life insurance policy in respect of which the taxpayer is a policyholder, the adjusted cost basis (as defined in subsection 148(9)) of the property immediately before it is donated is deemed to be the least of certain specified amounts which are determined in reference to adjusted cost basis (as defined in subsection 148(9)).
Explanatory Notes -2:
Charities and Qualified Donees
Clause 1
Qualified Donees
This clause makes a number of amendments to section 149.1 related to the administrative rules for qualified donees. Unless otherwise noted, these changes generally come into force on royal assent.
ITA
149.1(1) “registered foreign charity”
The new definition “registered foreign charity” refers to a foreign charity that has been registered by the Minister pursuant to subsection 149.1(26).
This amendment is consequential to amendments to subsection 149.1(14.2), paragraph 168(1)(c), and subsections 188.1(6) and 188.2(2.1) and applies to taxation years that begin after April 16, 2024.
ITA
149.1(6.3)
Subsection 149.1(6.3) authorizes the Minister to designate a charity as a charitable organization, private foundation or public foundation.
Currently, to make such a designation, the Minister must send a notice to the charity by registered mail.
Subsection 149.1(6.3) is amended to allow the Minister to send the notice electronically if the charity has given the Minister the authorization to do so in accordance with new subsection 244(14.3) and has not revoked the authorization at least 30 days before the notice is sent.
ITA
149.1(14.2)
New subsection 149.1(14.2) requires that each “registered foreign charity” file a public information return for the year in prescribed form and containing prescribed information. Information contained in a public information return will be disclosed to the public by the Minister pursuant to subsection 149.1(15).
The return must be filed within six months from the end of the organization’s taxation year. This change applies to taxations years that begin after April 16, 2024.
ITA
149.1(15)
Subsection 149.1(15) authorizes the Minister to communicate certain information in respect of charities.
Paragraph 149.1(15)(a) provides that, notwithstanding section 241, the Minister may share prescribed information that is required to be contained in the public information return under subsections 149.1(14) and (14.1).
Paragraph 149.1(15)(a) is amended to also refer to a public information return under new subsection 149.1(14.2).
ITA
149.1(22)
Subsection 149.1(22) provides that the Minister may send a notice to a person of the decision to refuse the application of the person for registration as a registered charity, registered Canadian amateur athletic association, registered journalism organization or qualified donee.
Currently, if the Minister sends such a notice to a person, the Minister must do so by registered mail.
Subsection 149.1(22) is amended to allow the Minister to send the notice by regular mail or electronically if the person has given the Minister the authorization to do so in accordance with new subsection 244(14.3) and has not revoked the authorization at least 30 days before the notice is sent.
Subsection 149.1(22) is also shortened by replacing the reference to “a registered charity, registered Canadian amateur athletic association, registered journalism organization or qualified donee referred to in subparagraph (a)(i) or (iii) of the definition qualified donee in subsection (1)” by a reference to “a qualified donee referred to in subparagraph (a)(i) or (iii) or any of paragraphs (b) to (c) of the definition qualified donee in subsection (1)”. This does not change its substance.
ITA
149.1(23)
Subsection 149.1(23) provides for notification that the registration of the person as a charity is annulled. The Minister may annul the registration of a charity if the person was registered in error or the person was a charity but has ceased to be a charity solely because of a change in law.
Currently, to make such a notification, the Minister must send a notice to the person by registered mail.
Subsection 149.1(23) is amended to allow the Minister to send the notice electronically if the person has given the Minister the authorization to do so in accordance with new subsection 244(14.3) and has not revoked the authorization at least 30 days before the notice is sent.
ITA
149.1(26)
Subsection 149.1(26) provides the criteria for the registration of a foreign organization for the purposes of the definition qualified donee in subsection 149.1(1).
Currently, the period for which a foreign charity may be registered is 24 months.
Subsection 149.1(26) is amended to increase that period to 36 months, applicable to foreign charities registered after April 16, 2024.
Clause 2
Revocation of Registration of Certain Organizations and Associations
ITA
168(1)
Subsection 168(1) describes the circumstances under which the Minister may give notice of the Minister’s intention to revoke the registration of certain qualified donees.
Currently, if the Minister gives such a notice, the Minister must do so by registered mail. Further, in respect of a failure to file an information return, the Minister may only give this notice to a qualified donee that is a registered charity, a registered Canadian amateur athletic association or registered journalism organization.
Subsection 168(1) is amended to allow the Minister to send the notice electronically if the person has given the Minister the authorization to do so in accordance with new subsection 244(14.3) and has not revoked the authorization at least 30 days before the notice is sent.
Also, paragraph 168(1)(c) is amended to permit the Minister to give notice to a registered foreign charity (as defined in amended subsection 149.1(1)) if it fails to file an information return.
ITA
168(2)
Where the Minister has notified a registered charity, Canadian amateur athletic association or registered journalism organization that the Minister proposes to revoke its registration, subsection 168(2) requires the Minister to publish a copy of the notice of revocation in the Canada Gazette.
Subsection 168(2) is amended to require that such publication now be made on an internet webpage of the Government of Canada and, consequential to the amendment of subsection 168(1), to also refer to the time of sending of the notice for the purpose of determining when the notice must be published.
Also, new paragraph 168(2)(c) requires that the Minister maintain a permanent record of the notice and make the notice available to the public.
ITA
168(4)
Subsection 168(4) provides that the objection process in respect of assessments under Part I also applies to certain notices of decisions of the Minister regarding certain qualified donees.
Consequential to the amendment to subsection 168(1), subsection 168(4) is amended to also refer to the day on which the notice was sent for the purpose of determining the deadline by which a person may serve on the Minister a written notice of objection.
Clause 3
Failure to file information returns
ITA
188.1(6)
Subsection 188.1(6) provides that a registered charity, registered Canadian amateur athletic association, or registered journalism organization is liable to a penalty equal to $500 if it fails to file a return for a taxation year as and when required by subsection 149.1(14) or (14.1).
Consequential to the enactment of new subsection 149.1(14.2), subsection 188.1(6) is amended to make liable to the penalty a registered foreign charity if it fails to file a return for a taxation year as and when required by new subsection 149.1(14.2).
Clause 4
Notice of suspension with assessment
ITA
188.2(1)
Subsection 188.2(1) provides for the suspension of a registered charity, registered Canadian amateur athletic association or registered journalism organization’s tax-receipting privileges under certain circumstances for one year from the time that is seven days after the day of mailing of the notice of suspension by registered mail by the Minister.
Subsection 188.2(1) is amended to allow the Minister to send the notice electronically if the person has given the Minister the authorization to do so in accordance with new subsection 244(14.3) and has not revoked the authorization at least 30 days before the date the notice is sent.
Consequently, subsection 188.2(1) is also amended to refer to the day of sending of the notice for the purpose of determining the time from which the suspension takes effect.
ITA
188.2(2)
Subsection 188.2(2) provides for the suspension of certain qualified donees’ tax-receipting privileges under certain circumstances for one year from the time that is seven days after the day of mailing of the notice of suspension by registered mail by the Minister.
Subsection 188.2(2) is amended to allow the Minister to send the notice electronically if the qualified donee has given the Minister the authorization to do so in accordance with new subsection 244(14.3) and has not revoked the authorization at least 30 days before the notice is sent.
Consequently, subsection 188.2(2) is also amended to refer to the day of sending of the notice for the purpose of determining the time from which the suspension takes effect.
ITA
188.2(2.1)
Subsection 188.2(2.1) provides for the suspension of certain qualified donees’ tax-receipting privileges for one year from the time that is seven days after the day of mailing of the notice of suspension by registered mail by the Minister if the qualified donee fails to report information that is required to be filed annually under subsection 149.1(14) or (14.1).
Subsection 188.2(2.1) is amended to allow the Minister to send the notice electronically if the qualified donee has given the Minister the authorization to do so in accordance with new subsection 244(14.3) and has not revoked the authorization at least 30 days before the notice is sent.
Consequently, subsection 188.2(2.1) is also amended to refer to the day of sending of the notice for the purpose of determining the time from which the suspension takes effect.
Further, subsection 188.2(2.1) is amended so that it also applies in respect of a registered foreign charity (as defined by amended subsection 149.1(1)) if it fails to report information that is required to be filed annually under new subsection 149.1(14.2).
ITA
188.2(3)
Subsection 188.2(3) sets out the consequences of a suspension under subsection 188.2(1), (2) or (2.1). One of those consequences is that the qualified donee is deemed not to be a qualified donee for the purposes of the Act and no charitable donations deduction or tax credit may be claimed by any person who makes a gift to the donee during that period.
Currently, this deeming rule takes effect seven days after the day on which the relevant notice is mailed.
Consequential to the amendment of subsections 188.2(1), (2), and (2.1), paragraph 188.2(3)(a) is amended to also refer to the date on which the notice is sent for the purpose of determining the time from which the deeming rule takes effect.
Clause 5
Tax regarding non-qualified investment
ITA
189(8)
Subsection 189(8) provides that certain provisions of Part I relating to returns, assessments, payments and appeals are applicable in respect of amounts assessed under Part V and to a notice of suspension issued under subsection 188.2(1), (2) or (2.1).
Paragraphs 189(8)(a) and (b) provide some qualifications to the application by reference of those Part I provisions, including a qualification that a notice or application sent or served under certain provisions be addressed to the “Assistant Commissioner, Appeals Branch”.
Paragraph 189(8)(b) is amended to replace the reference to “Assistant Commissioner, Appeals Branch” with a reference to “Appeals Branch”. This is being done to provide more flexibility.
New paragraph 189(8)(c) similarly qualifies the application by reference of those Part I provisions by providing that a person may serve a notice of objection or make an application for an extension of time to file such a notice in any manner authorized by the Minister.
Clause 6
Electronic notice — qualified donees
ITA
244(14.3)
New subsection 244(14.3) provides an alternative to the default method of delivering certain notices to qualified donees (or to a person who has been refused registration as a qualified donee) who use the CRA’s My Business Account or My Trust Account services.
New subsection 244(14.3) provides that certain notices that refer to the business number, trust account number or registration number of a person are presumed to be sent and received by the person on the date that they are posted in the secure electronic account (e.g., My Business Account or My Trust Account) in respect of the number.
This presumption only applies to the extent that the person has authorized that these notices be made available in that manner and has not revoked that authorization at least 30 days prior to the date the notice is posted in the account.
Clause 7
Definitions
ITA
248(1) “registered foreign charity”
Subsection 248(1) is amended to add the definition “registered foreign charity”, so that the definition of that term in amended subsection 149.1(1) applies for the purposes of the Act.
Clause 8
Contents of Receipts
ITR
3501(1)
Subsection 3501(1) sets out the requirements regarding the information that must be contained in an official receipt issued by a registered organization to enable a taxpayer to claim a credit under section 118.1 of the Act or a deduction under section 110.1 of the Act.
Subsection 3501(1) is amended to remove some of these information requirements by repealing paragraph 3501(1)(d) and subparagraph 3501(1)(e.1)(iii) and by amending paragraph 3501(1)(g) to remove the necessity to indicate an individual’s initial on a receipt.
Also, consequential to the enactment of new subsection 3501(3.2), paragraph 3501(1)(i) is amended to include a reference to that new subsection.
Finally, paragraph 3501(1)(j) is amended by replacing the reference to “website” with a reference to “webpage”.
ITR
3501(1.1)
Subsection 3501(1.1) sets out the requirements regarding the information that must be contained in an official receipt issued by a recipient other than a registered organization to enable a taxpayer to claim a credit under section 118.1 of the Act or a deduction under section 110.1 of the Act.
Subsection 3501(1.1) is amended to remove some of these information requirements by repealing paragraph 3501(1.1)(c) and subparagraph 3501(1.1)(e)(iii) and by amending paragraph 3501(1.1)(g) to remove the necessity to indicate an individual’s initial on a receipt.
Also, consequential to the enactment of new subsection 3501(3.2), paragraph 3501(1.1)(i) is amended to include a reference to that new subsection.
Finally, paragraph 3501(1.1)(j) is amended by replacing the reference to “website” with a reference to “webpage”.
ITR
3501(2)
Subsection 3501(2) provides that official receipts must be personally signed by certain individuals except as provided in subsections (3) and (3.1).
Consequential to the enactment of new subsection 3501(3.2), subsection 3501(2) is amended to include a reference to that new subsection.
ITR
3501(3.2)
New subsection 3501(3.2) sets out the circumstances under which an official receipt may be signed electronically.
ITR
3501(5)
Subsection 3501(5) requires a “spoiled official receipt form” to be marked “cancelled”.
Subsection 3501(5) is amended so that it applies to a “spoiled official receipt”.
Also, subsection 3501(5) is amended to provide that a spoiled official receipt may alternatively be marked “void”.