R19. What is the penalty for issuing receipts with false information?

R19. What is the penalty for issuing receipts with false information?


Short answer

A registered charity that issues an official donation receipt with incorrect or incomplete information can be subject to a penalty of five per cent of the eligible amount stated on the receipt. This penalty increases to 10 per cent if the violation is repeated within five years. A registered charity that issues an official donation receipt that includes deliberately false information is liable to a penalty equal to 125 per cent of the eligible amount stated on the receipt.

Long answer

If a charity is subject to more than $25,000 in penalties for having issued false receipts, that charity may have its charitable status suspended for one year.

A registered charity that disregards or continues to disregard the receipting requirements of the Income Tax Act could also have its registration revoked.