Tax Court of Canada


Income tax

Administration and enforcement

Donations in kind not supported by receipts not eligible as charitable deductions

Minister re-assessed taxpayer for 2003 to 2006 taxation years and disallowed charitable deductions claimed -- Taxpayer served notice of objection but Minister confirmed re-assessments -- Taxpayer appealed -- APPEAL DISMISSED -- Taxpayer gave donations to co-worker who also prepared his tax returns -- Donations were mostly in kind and taxpayer did not have receipts -- Co-worker later convicted of fraud in claiming charitable deductions for clients -- Several of charities had had their registrations revoked by Minister -- Amounts claimed by taxpayer were large percentage of taxpayer’s total income -- Highly unusual for taxpayer of his means to donate goods and/or cash of one-fifth to one-quarter of his gross income to charity -- Minister justified in re-assessing outside limitation period as taxpayer through his tax preparer had made misrepresentations -- At very least taxpayer neglectful in not reviewing his tax returns for 2003 and 2004 before preparer e-filed them on his behalf -- Taxpayer unable to produce single receipt supporting claim of charitable donations during taxation years 2003 to 2006 -- Section 118.1(2) of Income Tax Act mandatory and failure to comply fatal to any claim.

Zubeiru v. The Queen (2017), 2017 CarswellNat 5626, 2017 CarswellNat 5707, 2017 TCC 199, 2017 CCI 199, Rommel G. Masse D.J. (T.C.C. [Informal Procedure]).

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