15 April 2003 Ministerial Correspondence 2003-0011264 - RECEIPTS FOR POLITICAL CONTRIBUTIONS

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Does the Act impose a timing requirement on the issuance of receipts for political contributions?

Position: No

Reasons: No legislative provision imposing a timing requirement.

Signed on April 15, 2003

XXXXXXXXXX

Dear XXXXXXXXXX:

Mr. Rob Wright, Commissioner of the Canada Customs and Revenue Agency (CCRA), has asked me to respond to your letter of March 26, 2003, wherein you inquired whether the Income Tax Act contains any timing requirements applicable to the issuance of receipts for contributions to a registered political party.

Subsection 127(3) of the Act provides a graduated credit that reduces the federal income tax of contributors to registered political parties or to officially nominated candidates in a federal election. An official receipt for the contribution must be issued by a registered agent of the party or by an official agent of the candidate in order for the individual to be eligible for the tax credit.

The Act and the Income Tax Regulations contain various conditions pertaining to the issuance of receipts for political contributions. The subject is discussed in Information Circular IC 75-2R6, "Contributions to a Registered Political Party or to a Candidate at a Federal Election," which is available on our website at http://www.ccra-adrc.gc.ca/tax/technical/incometax/menu-e.html.

Subsection 230.1(2) of the Act requires a registered agent of a party or an official agent of a candidate to file an information return with the Minister of National Revenue. This information return must be filed within certain prescribed timeframes, and will indicate the total contributions received and the amount of contributions for which official receipts for income tax purposes have been issued. Where the amounts differ, a reconciliation must be attached to the information return. However, that being said, there is no explicit timing requirement in the Act or Regulations regarding the issuance of an official receipt to a contributor.

You have also asked whether it is legal for a political party to withhold a receipt for a contribution. As noted above, there is no requirement in the Act or Regulations compelling the issuance of an official receipt to a contributor. Accordingly, from an income tax law perspective, withholding such a receipt is not contrary to the law. We are not in a position, however, to comment on whether or not the withholding of such receipts contravenes any other legislation or contract law.

I trust the information I have provided will be of assistance.

		Yours sincerely,

		Bill McCloskey
		Assistant Commissioner
		Policy and Legislation Branch

Renée Shields
948-5273
2003-001126
April 15, 2003