Budget News March 2007

New Measures Relating to Private Foundations

On Monday, March 19, 2007, the Department of Finance announced measures to encourage charitable giving to private foundations in Canada.

The Budget proposes that, effective March 19, 2007,

• Where a taxpayer donates publicly-listed securities to a private foundation, the associated capital gains will be reduced to zero.

• Additionally, where an employee, who deals at arms-length with his or her employer acquires stock options and donates these within 30 days to a private foundation, an additional deduction will be available to offset the related employment income.