ARTICLE · 10 MAY 2024

CRA Releases View On Computing Donation Tax Credit

Carters Professional Corporation

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In its response, the CRA explained that the discretionary non-refundable tax credit set out in subsection 118.1(3) of the ITA is provided to individuals for a taxation year computed by reference ...

CanadaTax

Ryan M. Prendergast

The Canada Revenue Agency ("CRA") released CRA View 2023-1000021E5, dated January 23, 2024, a technical interpretation in which it considered the donation tax credit and the definition of "total charitable gifts" under subsection 118.1(3) of the Income Tax Act ("ITA"). More specifically, the CRA considered the scenario of where a taxpayer had made a $400 charitable gift to a qualified donee in the 2023 taxation year, and sought to claim a portion of the gift in the 2023 taxation year and claim the remainder in the 2024 taxation year.

In its response, the CRA explained that the discretionary non-refundable tax credit set out in subsection 118.1(3) of the ITA is provided to individuals for a taxation year computed by reference to the individual's total gifts for the year. Subsection 118.1(1) defines "total gifts" for a taxation year by reference to the individual's "total charitable gifts", "total cultural gifts" and "total ecological gifts", all as defined in

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