gift

1 February 2023 External T.I. 2022-0945221E5 - Directed gift to a municipality -- summary under Qualifying Disbursement

Regarding the receipt of funds by a qualified donee that is a municipality from a registered charity where such funds would then be directed to a non-qualified donee, being a non-profit organization, CRA, after noting that qualifying disbursement of a charity was defined in s. 149.1(1) to include a gift to a qualified donee, such a municipality in Canada registered by the Minister, stated:

By services, 31 January, 2018

Fonds de solidarité des travailleurs du Québec (F.T.Q) v. The Queen, 2018 TCC 3, aff'd on s. 18(1)(a) grounds 2019 FCA 36 -- summary under Paragraph 110.1(1)(a)

The appellant was the limited partner of a partnership (“SEC”) that had become insolvent during efforts to relaunch a paper mill close to the City of Chandler. A Plan of Arrangement concluded after the commencement of CCAA proceedings contemplated that the mill would be sold to a corporation (SDEIC) formed by the City. The appellant and other creditors of SEC agreed to lend money to SDEIC to finance cost of acquiring and starting-up the mill.

By services, 18 September, 2017

Cassan v. The Queen, 2017 TCC 174 -- summary under Paragraph 69(1)(c)

In rejecting (at para. 296) a Crown submission (summarized at para. 249) that “gift” required “detached and disinterested generosity”) Owen J stated:

Donative intent does not require the transferor to have a particular motive for making the transfer. Rather, donative intent simply requires that the transferor intended to transfer the property gratuitously.

By services, 1 March, 2016

French v. Canada, 2016 FCA 64 -- summary under Total Charitable Gifts

In his 2000 to 2002 taxation years, the taxpayer made gifts to a registered charity that were funded from personal funds and from loans tied to the gifts. His Notice of Appeal stated that had he been a resident of Quebec, he would have been entitled to a deduction under s.

26 June 2013 External T.I. 2013-0490711E5 F - Disposition en contrepartie de 1$ -- summary under Paragraph 69(1)(c)

Could the acquisition of a property for consideration of one dollar qualify as an acquisition by gift for purposes of s. 69(1)(c)? The Directorate referred to the relevance of Quebec law per s. 8.1 of the Interpretation Act, and quoted the statement in s. 1806 of the Quebec Civil Code that:

Gift is a contract by which a person, the donor, transfers ownership of property by gratuitous title to another person, the donee.

16 April 2013 External T.I. 2013-0477981E5 F - Interpretation of Gift -- summary under Total Charitable Gifts

A Quebec collective agreement requires each employee to annually pay a specified amount to a pre-established registered charity whose mission supports that of the employer, which also is charitable. In a variation (the second situation), an employee may opt out of the obligatory contribution by written notice. Would these contributions qualify as gifts?

After stating that

what constitutes a “donation” in civil law is a “don” for the purposes of the Act

CRA stated (respecting the first situation):

By services, 28 November, 2015

The Queen v. Littler, 78 DTC 6179, [1978] CTC 235 (FCA) -- summary under Paragraph 69(1)(b)

A sale by the taxpayer to his sons of shares for their market price at a time when the taxpayer had insider knowledge that an offer would be made for the shares at a price substantially higher than that market price was not a transaction whereby the taxpayer "dispose[d] of property directly or indirectly by way of gift" within the meaning of a former gift-tax provision of the Act. "A contract of sale, which is, by definition, a transfer of property for a consideration, cannot be a gift, which is, by definition, a disposition of property without consideration."

gift