R18. What steps should a registered charity take when it issues a receipt with an incorrect amount?
CRA has indicated that the following four (4) point course of action is acceptable:
- A replacement tax donation receipt with covering letter explaining the change and reason for the error (eg. error in determining FMV) should be issued to the donor in the correct amount.
- A copy of the previously issued receipt for XXX, marked “cancelled” should be provided to the donor with instructions that the donor would need to re-file for the XXXX taxation year, if the receipt in question were then claimed by the donor.
- A copy of the letter to the donor, together with the cancelled original charitable receipt and revised charitable receipt should be copied to the Charities Directorate, along with the full particulars or the name and address of the donor.
- A copy of the cancelled receipt and the newly issued receipt should be kept in the records of the charity and the charity should file a revised annual information return, form T3010, for the year XXXX, to reflect the changes in the receipts issued.
Source: Policies and Technical Information – Information Letter CIL 2001-023