Priest on the hook for $5.7K after CRA rejects donation receipts from his church

The rector of St. Patrick Basilica is heading to tax court after the Canada Revenue Agency (CRA) refused to accept thousands of dollars worth of receipts for donations he made to his own church.

Father Stephen Amesse said he donates a significant share of his salary to the basilica on Kent Street every year.

"I give a considerably amount of money," he said. "I believe, as a pastor, I have to give example."

He said CRA had never rejected his claims for tax credits for charitable donations before — until the 2022 tax year.

Amesse said CRA first asked for tax receipts, but when he provided them the agency still wanted proof of payment, so he sent church envelopes.

In his view, those envelopes confirmed the payments, made partly by cheque and partly in cash. He said he also sent a spreadsheet from the church's accountant to back them up.

"The next thing I hear is through email I get a bill for $5,600, without an explanation, and three days later they send an email explaining that they are not accepting my donations," he said.

That figure has now risen to about $5,700 with interest.

"I appealed, and it goes back and forth, four times sending copies of the envelopes, four times sending a copy of our receipts, and in August of this year I get a letter from the appeal division," Amesse said.

His objection was denied. The letter said his receipts did not have a registered charity number. Amesse found that absurd.

"Our receipt clearly has a charity number on it," he said.

He provided CBC with copies of the receipts, which include the registered charity number of the basilica.

"That's the frustrating part," said Amesse. "I can see it, everyone can see it, but for some reason they can't."

The CRA also pointed to a provision of the Income Tax Act stating that proof of payment is required when there is a "non-arm's length relationship between the taxpayer and the charitable organization." The letter claimed that the agency did not receive proof.