May 28, 1930 (16th Parliament, 4th Session)


William Daum Euler (Minister of National Revenue)



Subsection (j) of section 3
was allowed to stand in order that some decision might be arrived at to widen the exemptions from income tax. The government felt at the time that the exemptions allowed for donations to schools, hospitals, universities and churches went far enough, but during the discussion we realized that there was a great deal to be said for the arguments advanced that this clause might be broadened out in so far as the federated charities, the Red Cross and other organizations were concerned, and we decided that it would be desirable that this clause should be broadened out to that extent. We did not feel that there could be included in this clause definite reference to such organizations as the federated charities and the Red Cross, because we knew that protests would be coming in such as were presented yesterday. In casting about for some phrase which would make this clause as broad as possible, we decided on the phrase "charitable organization," and I propose to move the following amendment:
That section 3 (j) be amended by striking out the words "any church, university, college, school or hospital" in lines 24 and 25, and substituting therefor the words "any charitable organization."
Objections might be raised that the words "charitable organization" would not cover such institutions as churches, universities, schools and so on but I think the hon. leader of the

Income War Tax Act
opposition is familiar with Halsbury's Laws of England in which Charities are discussed as follows:
Only those purposes are charitable in the eye of the law which are of a public nature, whose object, that is to say, is to benefit the community or some part of it, not merely particular individuals pointed out by the donor.
Accordingly gifts which are directed to the abstract purposes of relieving poverty, advancing education or religion, are charitable.
A bequest for the relief of such poor persons as the testator's trustees may choose is charitable, but not where the choice is to be made from a number of named individuals.
"Charity" in its legal sense comprises four pricipal divisions: trusts for the relief of
poverty, trusts for the advancement of education, trusts for the advancement of religion, and trusts for other purposes beneficial to the community not falling under any of the preceding heads. Within one of these divisions all charities to be administered by the court must fall, though every object which might be brought within one of them is not necessarily a charity.
I submit that this phrase embraces every organization of this kind. The section will then read as follows:
not more than ten per centum of the net taxable income of any taxpayer which has been actually paid by way of donation within the taxation period to, and receipted for as such by any charitable organization in Canada operated exclusively as such and not operated for the benefit or private gain or profit of any person, member or shareholder thereof.

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