Consequences of improper receipting

What are the consequences for charities that issue receipts with incorrect or false information?

A registered charity that issues an official donation receipt that includes incorrect information is liable to a penalty equal to 5% of the eligible amount stated on the receipt. This penalty increases to 10% for a repeat offence within five years.

A registered charity that issues an official donation receipt that includes deliberately false information is liable to a penalty equal to 125% of the eligible amount stated on the receipt.

• If the charity is liable for penalties in excess of $25,000 for issuing false receipts, that charity is also liable to one year's suspension of its charitable status.

A registered charity that contravenes or continues to contravene the receipting requirements of the Income Tax Act could also have its registration revoked.

Related Topics

• Guidelines for Applying Sanctions
• Penalties - Suspensions Chart