Explanatory notes related to the Income Tax Act (Charitable donations)

Preface

These explanatory notes describe proposed amendments to the Income Tax Act. These explanatory notes describe these proposed amendments, clause by clause, for the assistance of Members of Parliament, taxpayers and their professional advisors.

These notes are intended for information purposes only and should not be construed as an official interpretation of the provisions they describe.

2024 Extension

ITA
110.1(18)

Section 110.1 provides rules for calculating the deduction in computing the taxable income of a corporation in respect of gifts made by the corporation to qualified donees. 

In response to the 2024 postal strike that began on November 15, 2024, new subsection 110.1(18) extends the deadline for making donations eligible for deduction in the 2024 tax year, until February 28, 2025. This new subsection will provide that gifts made before March of 2025 are deemed to have been made in a taxation year of a taxpayer that ends after November 14, 2024, and before 2025 (the "donation year"), and not in the taxpayer's 2025 taxation year, if

• the gift would be deductible under section 110.1 in computing the taxpayer's taxable income under Part I for the year if it were made immediately before the end of the donation year;
• the taxpayer deducts the amount of the gift under this section for the taxpayer's donation year; and
• the gift was in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment.

2024 Extension

ITA
118.1(29)

Section 118.1 provides a tax credit to individuals in respect of certain gifts made to qualified donees. 

In response to the 2024 postal strike that began on November 15, 2024, new subsection 118.1(29) extends the deadline for making donations eligible for determining an individual's charitable donation tax credit for the 2024 tax year, until February 28, 2025. This new subsection will provide that gifts made before March of 2025 are deemed to have been made in a taxation year of an individual that ends after November 14, 2024, and before 2025 (the "donation year"), and not in the individual's 2025 taxation year, if

• a credit for the gift would be deductible under section 118.1 in computing the individual's tax payable under Part I for the year if it were made immediately before the end of the individual's donation year;
• the individual claims the amount of the gift under subsection 118.1(3) of the Act for the individual's donation year;
• the gift was a gift in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment; and
• the gift was not made
  • through a payroll deduction, or
  • if the individual died after 2024, by the individual's will.