Low cost housing corporations for the aged

Suspension and revocation

A low-cost housing corporation for the aged may have its qualified donee status suspended or revoked by the Canada Revenue Agency (CRA) if it:

  • fails to keep books and records supporting the official donation receipts it issues, or fails to provide these to the CRA on request
  • is involved in the improper issuing of donation receipts
  • accepts a gift or transfer of property on behalf of a suspended qualified donee

If a low-cost housing corporation for the aged has its qualified donee status suspended, it cannot issue official donation receipts for one year. During that period, registered charities cannot make gifts to it. While under suspension, if offered a gift, the low-cost housing corporation for the aged must inform the potential donor about its suspension as well as the fact that the donor cannot receive an official donation receipt at any time for a gift made during the suspension.

A low-cost housing corporation for the aged can also have its qualified donees status revoked if it no longer meets the requirements for registration, or if it asks for voluntary revocation.

A revoked low-cost housing corporation for the aged is no longer a qualified donee.

Objections

An applicant that does not meet the requirements for registration as a qualified donee will receive a letter from the CRA explaining why it does not qualify. If the applicant disagrees with the CRA’s decision, the applicant can object to the decision by filing a notice of objection.

A low-cost housing corporation for the aged that receives a notice suspending its qualified donee status or proposing to revoke its registration can also file an objection.

The time limit for filing an objection is 90 days from the date on the notice. The objection must be in writing and provide the reasons for the objection and all the relevant facts.

For more information about this process, go to Objections and appeals.

References

  • Income Tax Act: tax exemption, 149(1)(i); definitions, 149.1(1); revocation, 149.1(4.3); refusal to register, 149.1(22); notice of revocation, 168(1); penalties, 188.2; objection, 168(4) and 189(8)
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