January 2009 Archives

SRED Tax Incentives - What's New

The Canada Revenue Agency has prepared a What's New page on its web site for information on the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program Support for scientific Research and Development (R&D) in Canada.

The SR&ED program is a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada. It is the largest single source of federal government support for industrial R&D.

The SR&ED program gives claimants cash refunds and/or tax credits for their expenditures on eligible R&D work done in Canada.

For information on what's new with the SRED program, please see:
http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html

CRA revokes the registered status of Little League Baseball Canada

In a news release on the Canada Revenue Agency (CRA) web site, the CRA has revoked the status of Little League Baseball Canada as a registered Canadian amateur athletic association (RCAAA), effective January 10, 2009. According to the web site, the following notice of revocation was published in the Canada Gazette:

"For issuing more than $82 million in donation receipts for abusive transactions arising from its role as a participant in a tax shelter arrangement that, in the opinion of the Minister, do not qualify as gifts, notice is hereby given, pursuant to paragraph 168(1)(d) of the Income Tax Act, that I propose to revoke the registration of the organization listed below. In accordance with subsection 168(2) of the Income Tax Act, the revocation of registration is effective on the date of publication of this notice."

For more information on this news release, please see the CRA web site at:
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m01/nr090112b-eng.html

Charitable status revoked for The Millennium Charitable Foundation

According to a news release published on the Canada Revenue Agency (CRA) website, the CRA has revoked the charitable registration of The Millennium Charitable Foundation, a Toronto-area charity, effective January 10, 2009.

In accordance with subsection 168(1) of the Income Tax Act, the notice of intent to revoke stated, in part, that:

"Our audit has concluded that from January 1, 2003 to December 31, 2006 The Millennium Charitable Foundation issued in excess of $169 million in receipts for cash and property received through tax shelter arrangements. The Charity, in turn, directed $114 million of the cash and property to two other registered charities also participating in these arrangements. The audit revealed that the vast majority of the cash sent to the other participant charities was subsequently paid to the promoters. Of the remainder, the Charity itself paid $33 million in fundraising fees to the tax shelter promoters and retained, but did not disburse, $21 million in net assets. In fact, it appears that beyond these transfers (i.e., those that the Charity is directed to make by the tax shelter promoters), the Charity has only made a single $2,200 gift to another qualified donee."

For more information on this or other CRA news release, please see the agency web site.