An Act to amend the Income Tax Act (donations involving private corporation shares or real estate)

Bill C-240 was a Conservative Private Member's Bill amending the Income Tax Act (R.S.C. 1985, c. 1, 5th Supp.) to provide an enhanced tax-credit framework for charitable donations involving private-corporation shares. Currently donations of private-corporation shares to registered charities receive a federal charitable-donations tax credit at the donor's marginal-tax rate but no exemption from capital-gains-inclusion (unlike public-traded securities, which receive a full capital-gains exemption under section 38.4 since 2006). The bill would have extended the public-traded-securities exemption to private-corporation shares donated to registered charities. Imagine Canada and the Canadian Association of Gift Planners supported the proposal. Did not pass second reading.