Electronic Donation Receipts
The Canada Revenue Agency (”CRA”) will not accept the electronic payment as evidence of a donation and will require an official donation receipt with the organizations charitable number. When making an online donation, you should ensure you download the official receipt immediately where it is available.
In many cases the donation receipt is not issued immediately, but follows in the subsequent day or so, therefore you need to be diligent to ensure you obtain the official donation receipt. I suggest creating a file for electronic receipts and as you receive the official donation receipt, you destroy the electronic payment receipt or move it to a paid bills file. Then, every month or two, review the file, if you have not received the official receipt, follow up with the organization at that time. This way, you will not be scrambling for an official receipt when you file your tax return.
Hey Dalton, where is my Refund!
article on this issue.
Taxman Probes TFSAs in which he discusses how the CRA has begun mailing out questionnaires to individuals that the CRA believes have achieved significant TFSA growth through swap transactions. The CRA is looking at swap transactions in which smaller cap stocks that have a large bid and ask difference were swapped into TFSAs at the lower bid price and later sold at the higher ask price; effectively creating tax-free money on the bid-ask difference. It is interesting to note that these types of transactions were in theory outlawed in October, 2009 by the CRA.
There will be some people who will have grown their TFSA through astute stock purchases who may receive the questionnaire. However, if these were typical stock purchases at market and not swaps, you should not have an issue.
If you are interested, Thorsteinssons LLP has a copy of the questionnaire and discussion on this issue here.
The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.