Contributions and tax credits (From Elections Canada website: www.elections.ca )
No candidate or registered party may accept contributions from an individual who is not a Canadian citizen or permanent resident of Canada; a corporation or an association not carrying on business in Canada; a union that does not hold bargaining rights for employees in Canada; or a foreign political party, a foreign state or an agent of a foreign state.
Although contributions may be made in the form of money, goods or services, only a monetary contribution qualifies for an income tax credit. The Canada Elections Act sets no limits on the amount that may be contributed to a candidate or registered political party, but a $500 maximum tax credit is established by the Income Tax Act.
The Income Tax Act provides tax credits for financial contributions to candidates and registered political parties as follows:
Contribution Amount |
Corresponding Tax Credit |
$0.01 to $200.00 |
75% of contributions |
$200.01 to $550.00 |
$150 plus 50% of contributions exceeding $200 |
$550.01 to $1 075.00 |
$325 plus 33.3% of contributions exceeding $550 |
$1 075.01 or more |
maximum credit of $500 |
The maximum credit allowed is $500 on contributions of more than $1 075 in any one calendar year.
To obtain an income tax credit, contributors must obtain an official receipt and submit it when filing their tax return. Only the official agent of a confirmed candidate or a registered agent of a registered political party may issue receipts for contributions.