23 June 2009 External T.I. 2009-0322551E5 F - Commission scolaire, Organisme public -- translation

Principal Issues: [TaxInterpretations translation] Can a school board qualify as a public body performing a function of government in Canada for the purposes of the definition of total charitable donations as proposed in Bill C-10.

Position: Yes,

Reasons: A school board is a public body performing a function of government in Canada

XXXXXXXXXX 							2009-032255
								Catherine Ayotte,
								Notary.

June 23, 2009

Dear Madam,

Subject: Definition of Total Charitable Donations

This is further to your email of May 12, 2009 asking for our views on the legislative proposal to add paragraph 118.1(1)(d.1) to the definition of "total charitable gifts".

Please note that unless otherwise indicated, all legislative references herein are to the legislative provisions of the Income Tax Act (the "Act") as they would have been amended had Bill C-10 1 (39th Parliament, 2nd Session) been assented to².

Question

You wish to know whether a school board governed by the Education Act (R.S.Q. c. I-13.3) could qualify as a municipal or public body performing a function of government in Canada for the purposes of paragraph 118.1(1)(d.1) of the definition of "total charitable donations".

Comments

The Canada Revenue Agency is of the view that a school board governed by the Education Act could be a public body performing a function of government in Canada and would then be an entity described in paragraph 118.1(1)(d.1) of the definition of "total charitable gifts" if that paragraph were adopted as proposed by subsection 107(3) of Bill C-10.

We hope that our comments are of assistance.

Best regards.

Ghislain Martineau
Manager
Financial Sector and Exempt Entities Section
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch.

ENDNOTES

1 An Act to amend the Income Tax Act, including with respect to foreign investment entities and non-resident trusts, and to provide for the bijural expression of certain provisions of that Act and related Acts,

2 Please note that this bill died on the order paper with the dissolution of Parliament in September 2008.