Posted under News | What's New from the Charities Directorate of CRA | Canadian Charity Law | Avoiding 'Charity' Scams
The Tax Court of Canada recently released a decision in Bandi v. The Queen which dismissed an appeal by a taxpayer who participated in a charitable giving program in 2003. The taxpayer claimed a charitable donation tax credit which was initially allowed but then disallowed after a reassessment by the Minister. The gift totaled $5,996 and consisted of a cash payment and four software licenses. The Court found that there was no evidence that the software licenses even existed which makes it impossible for the software licenses to have been gifted. The Court also found that the taxpayer could not receive a tax credit for the cash gift that was provided since the cash gift could not be considered in isolation from the overall plan which was not properly implemented.