Income Tax Act

Marginal note:Notice of suspension with assessment

• 188.2 (1) The Minister shall, with an assessment referred to in this subsection, give notice by registered mail to a registered charity that the authority of the charity to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the notice is mailed, if the Minister has assessed the charity for a taxation year for

  • (a) a penalty under subsection 188.1(2);

  • (b) a penalty under paragraph 188.1(4)(b) in respect of an undue benefit, other than an undue benefit conferred by the charity by way of a gift; or

  • (c) a penalty under subsection 188.1(9) if the total of all such penalties for the taxation year exceeds $25,000.

• Marginal note:Notice of suspension — general

  (2) The Minister may give notice by registered mail to a registered charity that the authority of the charity to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the notice is mailed

  • (a) if the charity contravenes any of sections 230 to 231.5; or

  • (b) if it may reasonably be considered that the charity has acted, in concert with another charity that is the subject of a suspension under this section, to accept a gift or transfer of property on behalf of that other charity.

• Marginal note:Effect of suspension

  (3) If the Minister has issued a notice to a registered charity under subsection (1) or (2), subject to subsection (4),

  • (a) the charity is deemed, in respect of gifts made and property transferred to the charity within the one-year period that begins on the day that is seven days after the notice is mailed, not to be a donee, described in paragraph 110.1(1)(a) or in the definition total charitable gifts in subsection 118.1(1), for the purposes of

    • (i) subsections 110.1(1) and 118.1(1),

    • (ii) the definitions qualified donee and registered charity in subsection 248(1), and

    • (iii) Part XXXV of the Income Tax Regulations; and

  • (b) if the charity is, during that period, offered a gift from any person, the charity shall, before accepting the gift, inform that person that

    • (i) it has received the notice,

    • (ii) no deduction under subsection 110.1(1) or credit under subsection 118.1(3) may be claimed in respect of a gift made to it in the period, and

    • (iii) a gift made in the period is not a gift to a qualified donee.

• Marginal note:Application for postponement

  (4) If a notice of objection to a suspension under subsection (1) or (2) has been filed by a registered charity, the charity may file an application to the Tax Court of Canada for a postponement of that portion of the period of suspension that has not elapsed until the time determined by the Court.

• Marginal note:Grounds for postponement

  (5) The Tax Court of Canada may grant an application for postponement only if it would be just and equitable to do so.