Recently, the Tax Court of Canada provided a judgment in Richard John Nixon and His Majesty the King, which deals with a leveraged donation arrangement that occurred in 2002 and 2003. The judgment was dated August 22, 2023. Even though the taxpayer said that his facts differed from those in the Kossow case, the TCC did not agree that the differences would result in a different outcome.
The new Qualifying Disbursement rules will give some charities (with certain objects) some more flexibility when dealing with non-qualified donees in Canada and outside of Canada. At the same time, the anti-avoidance provision passed at the same time will make it more difficult in many cases for registered charities to deal with non-qualified donees.
The Ontario Superior Court of Justice recently heard its first case on donor advised funds in The Joseph Lebovic Charitable Foundation v. Jewish Foundation of Greater Toronto. (PDF) This is the first time a court in Canada has discussed donor advised funds at length, and it sheds light on the court’s treatment of this increasingly popular philanthropic vehicle.