Canada: Charitable Giving Tax Guide For Individual Canadian Donors

Last Updated: October 31 2000

The following commentary provides an overview of the income tax incentives available to Canadian residents who make charitable donations.

By highlighting income tax incentives, we hope to encourage charitable giving in our communities.

Contents:

  • Introduction

  • Provincial Issues

  • Overview
  • Annual Donation Limit
  • Annual Donation Limit at Death

  • Designating your RRSP, RRIF or Life Insurance Policy

  • Gifts of Capital Property
  • Donations at Death
  • Lifetime Giving
  • Innovative Donations

  • Gifts of Life Insurance
    Gifts of a Residual Interest in a Trust or Estate
    Donations of Employee Stock Option Shares
    Gifts of Canadian Cultural Property
    Ecological Gifts
    Private Foundations
    Public/Community Foundations

  • Corporate Donors
  • Conclusion
  • Appendix

  • Individual Marginal Rates - 2000

Introduction

Charitable giving offers many benefits to both the community and the donor. This commentary will help you - and your financial and legal advisors, as well as the charities you support - determine the most cost-effective way to structure your donations.

Like many other individuals, you may not have given much thought to developing a tax-effective strategy for charitable giving. In recent years, the federal government has created a more generous tax incentive program for individuals who make gifts to charities. As well, while many people make charitable bequests in their wills, other ways of giving are less costly.

The following pages provide several examples of the charitable donation tax credit system. The examples illustrate how you may be able to significantly increase the amount you put into the hands of your favourite charities.

Rules For Corporations

This commentary focuses on the rules for individuals. Similar tax incentives exist for corporations. These incentives are discussed briefly under the heading "Corporate Donors".

Keeping Up-To-Date

Tax rules change, and the information in this commentary will eventually become outdated. This commentary includes the proposals introduced in the February 2000 federal budget. Before proceeding with a transaction, be sure that you are relying on up-to-date law.

For further information, please call the PricewaterhouseCoopers office nearest you.

Overview

The Canadian income tax system encourages you to make gifts to charitable organizations through the granting of tax credits.

In general, the system is designed to grant a tax credit at the top marginal tax rate. For example, for annual donations in excess of $200, you will receive a tax credit of approximately $0.45 for each dollar donated. (A reduced credit applies to annual donations under $200.)

The actual tax credit will vary slightly depending on the province in which you reside. For illustrative purposes, the examples throughout this commentary assume a combined federal and provincial top marginal tax rate of 45%. A comprehensive list of the top marginal tax rates, by province, is presented in the Appendix.

The tax credit is available for donations to:

  • Registered charities (includes Canadian universities and colleges);
  • Registered Canadian amateur athletic associations;
  • Certain non-profit organizations;
  • The United Nations and related agencies;
  • Canadian or provincial governments, crown foundations, municipalities; and
  • Certain foreign universities.

In order to claim the tax credit, you must submit an official receipt with your personal income tax return. The receipt should show the date on which the donation was made and the charity's registration number.

All donations should be reported in the tax return in the year the gift is made, even if the total gift exceeds the annual claim limit. This will help you track carryforward amounts and minimize the risk of lost receipts. If you neglect to report a donation in the year it is made, you can report and claim it in any of the five subsequent years, subject to the annual donation claim limit.

Generally, the administrative position of the Canada Customs and Revenue Agency (formerly Revenue Canada) is to allow either spouse to claim the donation.

Provincial Issues

This commentary has been written with reference to the federal income tax rules. There are differences with respect to provincial income taxes in Quebec, which manages its own personal tax system.

Recent provincial budgets in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova Scotia made significant changes to their personal income tax systems. At the date of writing, not all the details that could affect charitable donations were known, but the overall principles discussed in this commentary are not likely to change. However, you should consult your local advisor if you reside in these provinces and are planning for a significant donation. Due to proposed income tax rate reductions, the actual timing of your donation may be critical to maximizing your tax benefit.

Annual Donation Limit

Your annual general donation claim limit is 75% of yearly net income (100% in the year of death and the year immediately preceding death).

Generally, net income includes your total income received from all sources such as employment, pension, interest, dividends, capital gains, and business, less certain deductions such as Registered Retirement Savings Plan (RRSP) contributions, carrying charges and employment expenses.

Donations in excess of the annual general claim limit can be carried forward and claimed in any of the five succeeding years.

Example 1:

In 1999, Ms. Cooper has net income of $200,000. She donates $150,000, allowing herself the maximum charitable donation credit for the year (i.e. 75% of $200,000).

 

Without Donation

$

 

With Donation

$

Net income

Income tax*

Donation tax credit

200,000

80,000

0

 

200,000

80,000

(67,500)

Net tax liability

80,000

 

12,500

Charity receives

0

 

150,000

After-tax donation

(gift less donation tax credit)

0

 

82,500

* the $80,000 tax is less than 45% of $200,000 because the assumed 45% top marginal rate applies only to income above a certain level, which varies depending on the province or territory.

 

Example 2:

Ms. Cooper reports net income of $200,000 in each of 1999 and 2000. She donates $300,000 to her favourite charity in 1999.

How much can she claim, and when?

 

1999

$

 

2000

$

Net income

Donation made during the year

Limit (75% of net income)

200,000

300,000

150,000

 

200,000

0

150,000

Excess donation carried forward

Donation claimed

150,000

150,000

 

0

150,000

Charity receives

Donation tax credit

300,000

67,500

 

0

67,500

 

 

 

 

Total after-tax cost of donation

 

165,000

 

Annual Donation Limit At Death

The annual general donation claim limit increases from 75% of net income to 100% in the year of death.

Charitable donations made through your will are deemed to be made in the year of death, and can be claimed on your final tax return. Any excess donations can be carried back one year, and applied to the extent of 100% of your net income.

Example 3:

Mr. Price died on July 1, 2000. His net income at his death was $100,000; in 1999 his net income was $300,000. He made no other donations in 1999 and 2000. His will provided for a $300,000 donation to charity.

How much can his estate claim, and when?

 

1999

$

 

2000

$

Net income

Donation made during the year

300,000

0

 

100,000

300,000

Limit (100% of net income)

Excess donation carried back

Donation claimed

Donation tax credit

300,000

0

200,000

90,000

 

100,000

200,000

100,000

45,000

 

 

 

 

Charity receives

 

300,000

 

Total after-tax cost of donation

 

165,000

 

While the 100% limit may appear attractive, it may be to your advantage to consider a lifetime gift, taking advantage of the opportunity to claim the credit over six years (see "Lifetime Giving").

Designating Your RRSP, RRIF Or Life Insurance Policy

You may wish to designate a charity as a beneficiary of your RRSP, RRIF or insurance policy. Upon your death, the charity would receive the proceeds as the designated beneficiary of the plan. Prior to the February 2000 federal budget, this type of a donation did not qualify for a donation tax credit. Under the 2000 federal budget proposals, the charitable donation tax credit will apply to donations of RRSP, RRIF and insurance proceeds that are made as a result of direct beneficiary designations.

This rule will apply to deaths occurring after 1998.

Gifts Of Capital Property

It may be beneficial to donate capital property, rather than first selling the property and then donating the cash proceeds from the sale. This works particularly well for publicly-listed shares and mutual funds, because of the preferential capital gains treatment provided on certain listed securities, as set out below.

In general, the following rules apply for gifts of capital property:

Donation Receipt

A donation receipt is issued for an amount equal to the fair market value of the property. Be sure that you take due care to establish an appropriate fair market value for the donated property.

You may require the assistance of a valuations expert to determine an appropriate value for donated property. While this may not be an issue for small donations, for larger ones it may minimize subsequent disputes with the Canada Customs and Revenue Agency.

Taxable Disposition

The donation is viewed as a disposition for tax purposes, and if the property has an accrued gain the donation will trigger a capital gain.

The 2000 federal budget included a proposal to reduce the income inclusion rate for capital gains from 75% to 66.6% effective for capital gains realized after February 27, 2000 (50% after October 17, 2000). As a result, the effective top marginal tax rate on capital gains is approximately 30% (25% after October 17, 2000, varying depending on the province in which you reside). A comprehensive list of the top marginal rates, by province, is in the Appendix.

A few years ago, a new tax incentive was introduced for qualifying gifts of appreciated marketable securities. (Qualifying gifts are discussed below.) The capital gains inclusion rate for such gifts was cut in half and the donation claim limit was increased. The net effect of these enhancements to the incentives is that you will not pay any tax on capital gains arising from qualifying gifts of appreciated marketable securities, and a greater portion of the gift will be available to shelter other income from tax.

The gift must be made before December 31, 2001. For gifts made on or before February 27, 2000, the income inclusion rate in respect of any capital gain realized on the gifted securities will be 37.5%. For gifts made after that date until October 17, 2000, the income inclusion rate will be 33.33%, with a 25% rate applying thereafter. As a result, the effective top marginal tax on these post-October 17, 2000 qualifying gifts is reduced to approximately 12.5% (one-half of the ordinary capital gains rate).

The reduction applies to gifts of:

  • Shares, bonds, warrants, and options listed on a prescribed exchange;
  • Mutual fund shares and units and segregated fund units; and
  • Prescribed debt obligations.

A prescribed exchange includes the Toronto, Montreal and Winnipeg exchanges, the former Alberta and Vancouver stock exchanges (now merged as the Canadian Venture Exchange), the NYSE, Nasdaq (excluding the Over-the-Counter Bulletin Board), and most other major foreign exchanges.

Example 4a: Donation of a Capital Property vs Cash

Mr. Price is considering a $100,000 donation to his favourite charity, and has sufficient net income to claim the full amount of the donation in the year in which it is made. Among his assets are a valuable art collection and 1,000 shares of Publico, a publicly listed corporation. The shares and the art each have a fair market value of $100,000 and an original cost of $1,000. The art in this example is not Canadian Cultural Property, which is treated differently for tax purposes.

Mr. Price is evaluating three alternatives: selling the Publico shares and giving the cash to charity; transferring the Publico shares to charity for the fair market value of $100,000; and donating the art.

What is the net tax benefit of the donation?

 

 

Sell shares and donate cash

$

 

Donate the shares

$

 

Donate the art

 

$

Proceeds of sale/donation

Cost

 

100,000

1,000

 

100,000

1,000

 

100,000

1,000

Capital gain (proceeds less cost)

 

99,000

 

99,000

 

99,000

Tax on capital gain

Donation tax credit

(30%)

29,700

(45,000)

(15%)

14,850

(45,000)

(30%)

29,700

(45,000)

Net tax benefit from donation

 

(15,300)

 

(30,150)

 

(15,300)

The actual securities must be transferred to the charity. The gift will not qualify for the reduced rate if the securities are sold and the cash is gifted. The gift must not be made to a private foundation.

Private Company Shares Or Debt

The tax benefits available on gifts of private company shares and debt are limited by recent changes in the income tax rules. A detailed discussion of these rules is beyond the scope of this publication. You should seek professional advice if you are considering this type of donation.

Donations At Death

Your estate may be in a better position if you make a bequest in the form of capital property rather than first selling the property and then donating the cash proceeds from the sale. This is because of the reduced capital gains tax rate as discussed under "Gifts of Capital Property".

Example 4b: Effect on Net Worth of Donation of Shares

Mr. Price has decided to dispose of the Publico shares and wants to evaluate the effect on his net worth of donating them to the charity. His current net worth is $1,000,000

What is the after-tax cost of making the donation?

 

Sell shares and keep the cash

$

 

Donate the shares

$

Net income before sale/donation

Donation

Net tax on sale

Net tax benefit on donation

1,000,000

0

(29,700)

n/a

 

1,000,000

(100,000)

n/a

30,150

Net worth after sale or donation

970,300

 

930,150

Charity receives

After-tax cost of donation

0

n/a

 

100,000

40,150

Example 5: Donations at Death

Ms. Cooper died March 1, 2000. At her death, the value of her estate before tax was $750,000: publicly listed shares worth $250,000 and $500,000 cash. Her net income for 2000 (before the gain on the shares) was $200,000. Her will provides for a $250,000 donation. The estate's executors are deciding whether to donate the shares (cost $2,500 and fair market value of $250,000) or cash.

What is Ms. Cooper's income tax liability as reported in her final return? What is the after-tax value of her estate?

 

Donate cash

$

 

Donate shares

$

Other income (Jan. 1 - March 1)

Tax payable on other income

Tax payable on the capital gain resulting from the donation of shares

Tax payable on the capital gain resulting from the deemed disposition of shares*

200,000

80,000

0

74,250

 

200,000

80,000

37,125

0

Income liability in the year of death

154,250

 

117,125

Estate's value after tax

Cash

Shares

2000 tax liability

250,000

250,000

(154,250)

 

500,000

0

(117,125)

Value of estate after donation

345,750

 

382,875

 

 

 

 

* At the date of death, all property is deemed to be disposed of for proceeds of disposition equal to fair market value (unless property is transferred to a spouse). As such, if the shares are not donated, a capital gain of $247,500 ($250,000 - $2,500) will be triggered upon Ms. Cooper's death, resulting in a tax payable on the resulting capital gain of $74,250 (30% of $247,500).

Lifetime Giving

You may be better off making a donation in annual instalments during your lifetime rather than making a significant donation upon death, because you will be able to maximize the tax credit. As a result, you will leave a larger estate for other beneficiaries, or have more assets available for donation.

Example 6a: Donation Spread over Several Years

Mr. Price wants to donate $600,000 to his favourite charity. He plans to donate $150,000 in each of the next four years. He anticipates that he will earn $200,000 per year in each of the next four years.

What is his total tax liability over the next four years?

 

1999 to 2002

$

 

Net income (over 4 years)

Donation (over 4 years)

Tax on income

Donation tax credit

800,000

600,000

320,000

(270,000)

 

= $80,000 for each of four years

Net tax

50,000

 

 

 

 

Example 6b: Cash Donation in Year of Death

Mr. Price's will provides that a cash donation of $600,000 be made upon death. Mr. Price dies in 2002. His annual net income from 1999 to 2002 is $200,000. He made no other donations in that period.

What is his total tax liability for the 1999 through 2002 taxation years?

 

1999 and 2000

$

 

2001 and 2002

$

 

Total

 

$

Net income

Maximum donation*

Tax on income

Donation tax credit **

400,000

0

160,000

0

 

400,000

356,000

160,000

(160,000)

 

800,000

356,000

320,000

(160,000)

Net tax on liability

160,000

 

0

 

160,000

 

 

 

 

 

 

Comparing Mr. Price's cumulative after-tax positions for 1999 through 2002 highlights the tax effectiveness of making the donation in instalments:

 

Lifetime Giving

 

Bequest

 

 

Net income

Tax

800,000

(50,000)

 

800,000

(160,000)

 

 

After-tax income

750,000

 

640,000

 

 

Unused donation

Nil

 

244,000

 

 

* As noted above under Annual Donation Limit at Death, the donation claim limit is 100% of net income in the year of death. Excess donations made in the year of Mr. Price's death can be carried back to 2001 and applied against 100% of his net income. Mr. Price cannot obtain a donation tax credit in 1999 and 2000.

** Tax credits for 2001 and 2002 cannot exceed the total tax paid for the year. In this example, a claim on $356,000 of donations eliminates the tax liabilities in 2001 and 2002. As a result, the implicit tax benefit on $244,000 of unused donations ($600,000 - $356,000) is lost.

Innovative Donations

There are a number of other innovative ways in which you may be able to contribute to a charity.

Gifts Of Life Insurance

You may be eligible for a donation credit in respect of a donation of an insurance policy, provided the policy is absolutely assigned to a charity at the time of the gift. That is, the charity must be the owner and beneficiary of the policy and you cannot have any remaining right to the policy. The amount eligible for the credit is the cash surrender value of the policy and any accumulated dividends and interest at the time of the transfer. Your future premium payments will also qualify for a donation tax credit.

In some cases, it may make more sense to name your estate as the beneficiary of the policy and have the estate make the donation, or have the charity designated as the beneficiary of the policy. This way your estate may be eligible to claim a donation for the full amount of the insurance proceeds.

Gifts Of A Residual Interest In A Trust Or Estate

You may transfer property to a trust, name a charity as the capital beneficiary, and claim a donation equal to the fair market value of the trust's residual interest. The residual interest is equal to the present value of the trust's capital.

This could be done during your lifetime, or upon death. The terms of the trust could be such that you, and/or another designated beneficiary ("income beneficiary"), would be entitled to receive the annual income earned by the trust. The capital of the trust ("residual interest") would be paid to the charity upon the death of the income beneficiary.

For example, you could transfer a bond to a trust. Under the terms of the trust, you would be entitled to receive the interest income. Upon maturity, the principal amount of the bond would be paid to the charity. As long as the trust is irrevocable, the charity can issue a receipt at the time the bond is transferred to the trust. The amount of the receipt will be a function of the present value of the principal amount of the bond.

In many cases, a valuation will be required in order to assign a value to the residual interest. The value will be a function of various factors, such as the nature of the underlying assets, the investment policy, and the anticipated timing of the distribution of the trust's assets. If a value cannot be reasonably determined (e.g. when the terms of the trust allow for the withdrawal of capital), no donation tax credit is allowed.

Donations Of Employee Stock Option Shares

Exercising an employee stock option may result in taxable employment income. On qualifying shares, this income is taxed like a capital gain. In accordance with the reduction in the capital gains inclusion rate, the 2000 federal budget also calls for a reduction in the income inclusion rate on the exercise of these stock options to 66.67% (50% after October 17, 2000).

The 2000 federal budget also provides that, under certain circumstances, the donation of such shares to charity will be subject to the lower income inclusion rate of 33.33% (25% after October 17, 2000). Assuming the shares qualify, to take advantage of the reduced capital gains inclusion rate, the shares must be:

  • Acquired after February 27, 2000 and donated before 2002;
  • Donated within the year they are acquired; and
  • Donated within 30 days after their acquisition.

Gifts Of Canadian Cultural Property

The fair market value of gifts of "Canadian Cultural Property" is to be determined by the Canadian Cultural Property Export Review Board. Donations of Canadian Cultural Property can be claimed to the extent of 100% of net income. Excess donations can be carried forward five years (and back one year, to the extent of 100% of net income, if made in the year of death).

In addition, capital gains arising on the deemed disposition of the property are not taxable.

Ecological Gifts

Encouraging gifts of ecologically sensitive land has been a government objective in recent years. The annual claim limit for gifts of such property to Canadian municipalities and certain registered charities is 100% of net income.

Effective for ecological gifts made after February 27, 2000, the income inclusion applicable in respect of capital gains arising from qualifying gifts of ecologically sensitive land and related easements, covenants and servitudes is reduced by one-half. Therefore, the income inclusion rate will now be only 33.33% of the gain (25% after October 17, 2000).

To qualify for this reduced rate, the following conditions must be met:

  • The land that is the subject of the gift must be certified by the Minister of the Environment to be ecologically sensitive land, the conservation and protection of which is important to the preservation of Canada's environmental heritage; and
  • The gift must be made to Her Majesty in right of Canada or a province or a municipality in Canada, or a registered charity (other than a private foundation), one of the main purposes of which is the conservation and protection of Canada's environmental heritage.

The 2000 federal budget also introduced a new requirement regarding the valuation of ecological gifts. Effective for gifts made after February 27, 2000, the value of all ecological gifts will be determined by a special process to be established by the Minister of the Environment. If there is a disagreement regarding the value, the donor has the right to appeal to the Tax Court of Canada. Once determined, the value will apply for two years.

Private Foundations

You may prefer to have greater control over your charitable contributions. One method of accomplishing this is to establish your own private charitable foundation.

Private foundations can be an effective tool for charitable giving, but changes to the Income Tax Act have severely limited the tax planning strategies available. For example, the reduced capital gains rate for the gift of publicly-listed securities is not available for gifts to private foundations (see "Gifts of Capital Property"). In addition, the Income Tax Act now contains various "anti-avoidance" provisions that may apply. In light of the changes, you should consider carefully any charitable planning strategies using private foundations.

Public/Community Foundations

Many Canadian communities have established "community foundations" that accept gifts from donors.

A community foundation is a public foundation, typically established to build a permanent endowment to support a designated geographic area and support all sectors of the community (arts, social services, education, environment and health).

A community foundation is not subject to the same restrictions and anti-avoidance rules as a private foundation. Depending on your specific philanthropic objectives, your local community foundation may be an appropriate alternative to establishing a private foundation.

Corporate Donors

Tax incentives similar to those for individuals are available to corporations. Corporations, however, receive tax deductions rather than tax credits.

Specifically, a corporation:

  • Can deduct an amount up to 75% of its annual net income, and can carry forward excess donations for five years;
  • Is eligible for the reduced capital gains rate on gifts of certain capital property (see "Gifts of Capital Property"); and
  • Is eligible for an additional donation limit of 25% of any taxable capital gains triggered on the donation of capital property (see Gifts of Capital Property).

You may hold investments in a private holding corporation. The income tax rules are intended to leave you indifferent as to whether it is you or your holding corporation that makes a donation. This, however, is not always the case. If you are contemplating a large gift from a holding corporation, you should consult your tax advisor.

Conclusion

The examples presented in this commentary show how tax planning can result in significant savings for the donor. We emphasize that tax is only one consideration in developing your donation strategy. A variety of innovative and creative methods are available, which should allow you the flexibility to develop a plan that meets all your objectives.

This guide provides general information but is no substitute for professional advice. We welcome your enquiries and will be delighted to help you pursue effective charitable giving options.

Appendix

Individual Marginal Rates - 2000

Throughout this commentary the examples have assumed that you will receive a tax credit equal to 45% of your donation (or $0.45 for each dollar donated). In fact, for annual donations in excess of $200, the system is designed to grant a tax credit at the top marginal tax rate. A lesser credit will apply to the first $200 of donations made during the year ($2,000 for Quebec tax).

Your top marginal tax rate depends on the province in which you reside at the end of the year.

The following table shows the top marginal combined federal and provincial tax rates (including all surtaxes and flat taxes) for each dollar of income earned in the top marginal tax bracket. It will help you determine the actual amount of your donation tax credit. For example, if you reside in British Columbia, you will receive a tax credit of approximately $0.51 for each dollar donated.

2000 Top Combined Marginal Tax Rates (%)

(in declining order of rates on ordinary income)

 

Interest & ordinary income

 

Capital gains*

Canadian dividends

Newfoundland

British Columbia

Quebec

Saskatchewan

Prince Edward Island

Nova Scotia

New Brunswick

Manitoba

Ontario

Yukon

Non-resident

Alberta

Northwest Territories

Nunavut

Federal only

51.31

51.26

50.67

49.73

48.79

48.79

48.77

48.08

47.86

45.37

44.37

43.71

43.50

43.50

30.45

34.20

34.17

33.78

33.15

32.53

32.52

32.51

32.05

31.91

30.25

29.58

29.14

29.00

29.00

20.30

34.65

34.61

35.04

34.66

32.95

32.95

32.93

34.77

32.32

30.64

29.96

29.80

29.38

29.38

20.56

* 50% of ordinary income rate for disposition after October 17, 2000

The information provided herein is for general guidance on matters of interest only. The application and impact of laws, regulations and administrative practices can vary widely, based on the specific facts involved. In addition, laws, regulations and administrative practices are continually being revised. Accordingly, this information is not intended to constitute legal, accounting, tax, investment or other professional advice or service.

While every effort has been made to ensure the information provided herein is accurate and timely, no decision should be made or action taken on the basis of this information without first consulting a PricewaterhouseCoopers LLP professional. Should you have any questions concerning the information provided herein or require specific advice, please contact your PricewaterhouseCoopers LLP advisor, or:

PricewaterhouseCoopers refers to the Canadian firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organization.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement

    Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of www.mondaq.com

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

    Disclaimer

    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

    Registration

    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

    Cookies

    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

    Links

    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

    Mail-A-Friend

    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

    Emails

    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

    Security

    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at enquiries@mondaq.com.

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions