Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
WHETHER SPECIFIC ENTITY AGENT OF HER MAJESTY IN RIGHT OF ONTARIO?
Position TAKEN:
QUESTION OF FACT. SPECIFIC ENTITY SHOULD OBTAIN AN OPINION FROM PROVINCIAL MINISTER OF JUSTICE.
Reasons FOR POSITION TAKEN:
MATTER TO BE DECIDED ON BASIS OF THE APPLICABLE COMMON LAW.
943216
XXXXXXXXXX Wm. P. Guglich
Attention: XXXXXXXXXX
May 31, 1995
Dear Sirs:
This is in reply to your letter of November 2, 1994 inquiring as to whether XXXXXXXXXX (the "College") is an agent of Her Majesty in the right of Ontario. We apologize for the delay in our response.
You informed us that the College is a community college in the Province of Ontario and is under the direction of the Ontario Ministry of Education and Training.
You also informed us that the College is registered as a charitable organization. Its registration number is XXXXXXXXXX
OUR VIEWS
In our opinion:
a)gifts made by a donor which is a corporation to the College in its capacity as a registered charity will qualify for a deduction under subparagraph 110.1(1)(a)(i) of the Act subject to the restrictions on deductibility provided for therein and provided official receipts, containing prescribed information as required by subsection 110.1(2) of the Act, are filed by donors with the Minister of National Revenue, that is, submitted with their tax returns, and
b)gifts made by a donor who is an individual to the College in its capacity as a registered charity will entitle the individual to a tax credit, calculated in the same manner provided in subsection 118.1(3) of the Act, provided that the individual files a receipt for the gift containing prescribed information as required by subsection 118.1(2) of the Act.
We are unable to express an opinion as to whether the College is an agent of Her Majesty in the right of Ontario. Without clear statutory authority, determination as to whether a specific entity is a crown agency is a question of fact to be resolved on the basis of the applicable common law. In cases where such a determination is required we request that the entity obtain from Justice Canada (in the case of Federal entities) or the relevant Provincial Minister of Justice (in the case of provincial entities) an opinion that the specific entity is an agent of Her Majesty. We could then issue an opinion or ruling regarding the deductibility of a Crown gift.
In your specific case, we suggest that you consult the Minister of Justice of Ontario as to the status of the College. The Ontario Crown Agency Act may be of assistance in this determination. Sections 1 and 2 of the Ontario Crown Agency Act provide:
"1. In this Act, "Crown agency" means a board, commission, railway, public utility, university, manufactory, company or agency, owned, controlled or operated by Her Majesty in the right of Ontario, or under the authority of the Legislature the Lieutenant Governor in Council.
2. A Crown agency is for all its purposes an agent of Her Majesty and its powers may be exercised only as an agent of Her Majesty."
We trust our comments will be of assistance to you.
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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