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This enactment amends the Income Tax Act in relation to gifts of food products made by corporations to food banks.
Available on the Parliament of Canada Web Site at the following address:
R.S., c.1 (5th Supp.)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1 (1) The portion of paragraph 110.1(1)(a) of the Income Tax Act before the formula is replaced by the following:
(a) the total of all amounts each of which is the eligible amount of a gift (other than a gift described in paragraph (c), (c.1) or (d)) made by the corporation in the year or in any of the five preceding taxation years to a qualified donee, not exceeding the lesser of the corporation’s income for the year and the amount determined by the formula
(2) Subsection 110.1(1) of the Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after that paragraph:
Gifts to food banks
(c.1) the total of all amounts each of which is the amount of a gift made by the corporation, in the year or in any of the five preceding taxation years, of property that is a food product to a qualified donee that is a registered charity, one of the main purposes of which is, in the opinion of the Minister, to provide food products free of charge to persons in need, which amount is equal to the lesser of
(i) twice the cost to the corporation of the property, and
(ii) the amount determined by the formula
A + (B x 0.5)
(3) Section 110.1 of the Act is amended by adding the following after subsection (4):
Food product gifts
(4.1) For the purposes of applying subparagraph 69(1)(b)(ii) in respect of a gift described in paragraph (1)(c.1), the fair market value of the gift at the time the gift was made is deemed to be the cost to the corporation of the gift.
(4) Subsections (1) to (3) apply to gifts made after December 31, 2018.
Published under authority of the Speaker of the House of Commons