HOW ONTARIO TAX CREDITS WORK

Election Finances Act R.S.O. 1990
CHAPTER E.7: Value of goods and services

(Regulations changed in 2018)
(No Corporate, only Personal contributions now)
   

"Absolutely" says Brant M.P.P. Dave Levac to Tax Credits to feed poor 45sec video

Ontario helps political parties by giving a percentage of a donation back to contributors of cash, goods or services as a tax credit claimed on their yearly tax return:
- 75% of donations up to $400 to get back $300, $100 net donation; if goods and services.
The amount of credit depends on how much you give. The rate is:
75 per cent on the first $406 of donations in 2018 ($406*.75=$304.50) (only government could use weird numbers)
50 per cent on the portion of your donation between $406 and $1,354 in 2018 ($948*.5=$474)
33.33 per cent on the portion between $1,354 and $3,081 in 2018 ($1727*.33=$569.91)
So donate the whole $3,081 to get a Tax Credit of $1,348 (43.75%!)
An individual can only contribute $1,222 to 1) political party, 2) constituency association, candidate. Gets $304.50+408= $712.50 for $1,222, or 58%!
You receive a Temporary Tax Credit until an official Ontario Tax Credit Receipt is mailed by our Chief Financial Officer after the end of year for any sales slip donated with goods, services or Gift Certificate. You then accept Pauper Party Party Bucks until your Gift Certificate is redeemed.

"USE IT OR LOSE IT" SERVICE OR TIME RENTAL
Net $1,348 tax credit by donating a $3,081 Gift Certificate for:
- buckets of balls at your driving range on slow days;
- movie seats in your theatre on slow nights;
- empty hotel and motel rooms in slow season;
- frames in your bowling alley on slow days;
- video and DVD rentals;
- spare advertising space in your newspaper.

PRODUCTS WITH HIGH COSTS (round numbers)
If netting a 44% tax credit for $1,348 out of a donation of $3,081 that costs you $1,733 leaves too little to cover overhead costs, cut that 56% political loss in half by doubling the sales volume. Take half in cash and half in our Party Bucks! Same $1,727   political donation lost in doubled sales of $6,162.
Redeem 25% in Party Bucks and 75% in cash to get four times the sales of $12,324 for your $1,727 lost: 14% political donation.
Should your gas bar not be able to afford that, taking 10% Paper Party Bucks and 90% in cash cuts the 56% loss of to 5.6% of $30,810 in sales.
The chart below shows how the Party Bucks Redemption Rate cuts the political discount lost on gross sales (rounded to $3K) (double if owner) (actual loss due to increased volume is simply 2/3 of redemption rate!)

Election Finances Act R.S.O. 1990, CHAPTER E.7: Value of goods and services:
21.(1) The value of goods and services provided to a political party, constituency association, candidate or leadership contestant registered under this Act shall be,
(a) where the contributor is in the business of supplying such goods or services, the lowest amount charged by the contributor for an equivalent amount of similar goods and services at or about the time and in the market area in which the goods or services are provided;
(b) where the contributor is not in the business of supplying such goods or services, the lowest amount charged, at or about the time the goods or services are provided, by any other person or corporation providing similar goods on a commercial retail basis or similar services on a commercial basis in the market area in which the goods or services are provided.
http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90e07_e.htm#BK15  

To get an Ontario Tax Credit for your contribution, print out and sign the Gift Certificate for the goods or services donated and send it with sales slip before the end of business year if you want it on your next tax return to:
Pauper Party of Ontario,
50 Brant Ave. Brantford N3T 3G7
Tel/fax: 519-753-0645

Have any friends who could use a tax credit for excess capacity?

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