Recent Tax Developments

Interpretation Bulletin IT-244R3, Gifts by Individuals of Life Insurance Policies as Charitable Donations, dated September 6, 1991 was issued to cancel and replace IT-244R2, dated March 3, 1986. The Bulletin discusses the income tax implications of the donation by an individual of a life insurance policy to a registered charitable organization or a charitable foundation,…

Recent Tax Developments

The Tax Editors are indebted to Holly MacLachlan-Toonders of Peat Marwick Thorne for this explanation of complex but crucial problems affecting many charitable organizations. Fund-Raising Events and the GST Because of the importance of fund raising to charitable organizations, this column is devoted entirely to the goods and services tax implications arising from fund-raising events….

Recent Tax Developments

The 1990 Report of the Auditor-General: A Comment The 1990 Report of the Auditor General of Canada to the House of Commons devoted an entire chapter to the tax treatment of charities and nonprofit organizations. The chapter provides an interesting and comprehensive overview of the financial relationship of charities to Canadian society, complete with statistics….

Recent Tax Developments

On November 20th at the Eleventh Annual Canadian Conference for Charities and Not-For-Profit Organizations sponsored by The Canadian Centre for Philanthropy, the Minister of Revenue, the Honourable Otto Jelinek announced details of proposed changes in the administration of the income tax rules as they relate to registered charities. The Discussion Paper entitled A Better Tax…

Recent Tax Developments

Rumack v. M.N.R., 90 DTC 6271 FCTD Charities that have used “Cash for Life” lotteries as a method of fund raising will be pleased with the recent decision of the Federal Court in Rumack. In that case, Miriam Rumack won $1000 a month for life, guaranteed for 20 years, in a Cash for Life lottery…

Recent Tax Developments

Budget Proposal Affects Prospective Donors On February 20, 1990 the Honourable Michael Wilson, Minister of Finance, presented his 1990 budget. In the recent past, tax practitioners have grown used to countless resolutions relating to income tax and sales and excise tax legislation.This budget was an exception as there were only seven resolutions relating to the…

Recent Tax Developments

Two recent cases will be of interest to charities. Centenary Hospital Association In an application by Centenary Hospital Association (the “Hospital”) to the Supreme Court of Ontario, heard: May 23, 24 and 25, 1989 (unĀ­reported), Osler J. considered issues involving charities and business. While this was not a tax case, it will be of interest…