Dear Sirs:
Re: Technical Interpretation of Paragraph 118.1(6)(b) of the Income Tax Act Your file number 24(1)
This is in reply to your letter of June 12, 1991 in which you asked for additional information concerning the above.
As you noted in your letter, we have already provided you with a technical interpretation concerning the aforementioned (our file number 5-910441). We indicated that, in order for a donation to the 24(1) 24(1) to be accepted for tax purposes a letter from 24(1) should be include, inter alia, a description of the uses to which the property will be put in order to provide support for the determination that the donated property will be held in the "public interest", would be required. You have asked us, whether it would be sufficient to meet the condition outlined above, for the 24(1) to draft a letter with the above undertaking and annexe the organization's "mission statement". Our understanding is that this "mission statement" outlines the organization's objectives.
We are of the opinion that such documentation would be sufficient if the mission statement explicitly sets the organization's objectives which are clearly within the "public interest" and that it is binding with respect to the donation for which a non-refundable credit pursuant to paragraph 118.1(6)(b) of the Income Tax Act is being claimed. Without reviewing a copy of the documentation which you are proposing to file, we cannot regrettably confirm that a copy of the mission statement, by itself, would be sufficient.
The above comments are general in nature and may not be applicable to a specific fact situation. Further, as mentioned in paragraph 21 of Information Circular IC 70-6R2 (dated September 28, 1990), the above opinions are not advance income tax rulings, and consequently are not binding on the Department.
We trust the above comments will be of assistance to you.
for DirectorBilingual Services and Resource Industries DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch