Municipal or public bodies performing a function of government in Canada
Suspension and revocation
A municipal or public body may have its receipting privileges suspended or its qualified donee status revoked by the Canada Revenue Agency (CRA) if it does any of the following:
- 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 issuance of donation receipts
- accepts a gift or transfer of property on behalf of a suspended qualified donee
If a municipal or public body's receipting privileges are suspended, it cannot issue official donation receipts for one year. During that period, it is not eligible to receive gifts from registered charities. While under suspension, if offered a gift, the municipal or public body 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 municipal or public body's qualified donees status may also be revoked if it no longer meets the requirements for registration or if it asks for voluntary revocation.
A revoked municipal or public body no longer has qualified donee status.
An applicant that receives a notice refusing its registration for qualified donee status can object to the decision by filing a notice of objection.
A municipal or public body that is a qualified donee can also file an objection to a notice suspending its receipting privileges or proposing to revoke its registration.
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.
- Income Tax Act: tax exemption, 149(1)(c); 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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