Castro - Federal Court of Appeal finds that an inflated charitable receipt was not a s. 248(32) “advantage” – but the wrong amount invalidated it

6 November 2015 - 9:51pm

Various individuals made cash contributions to a registered charity on the basis that the charity would issue charitable receipts to them for 10 times the amount of their contributions.

Scott JA agreed with Woods J below that the inflated charitable receipts did not constitute a benefit (so as to vitiate the cash amount of the contributions as "gifts" on general principles), and similarly found that the the inflated receipts were not "advantages"  so as to invalidate the contributions under s. 248(30)(a).  However, he denied a charitable credit for the cash contributions on the basis that the inflated amounts shown on the receipts rendered the receipts invalid.

He did not decide, on the Crown’s further argument that the taxpayers lacked donative intent, on procedural grounds.

Neal Armstrong.  Summaries of Castro v. The Queen, 2015 FCA 225, rev'g sub nom. David v. The Queen, 2014 DTC 1111 [at 3236], 2014 TCC 117, under s. 118.1(1) – total charitable gift, s. 248(32), Reg. 3501(6), and Interpretation Act, s. 32.