Comments on Certain Proposed Tax Rules Applicable to Charities: Gifts to Foreign Entities, Large Gifts and “Split Receipts”

Introduction On December 20, 2002, the Department of Finance made its annual Christmas gift to tax practitioners by transferring, without consideration, a 560-page tome containing detailed amendments to the Income Tax Act1 together with so-called “explanatory notes.”2 The December 20 Draft Legislation proposed to amend three subjects relevant to charities: it added an explicit prohibition…