You may be required to indicate in a return if the donor of a gift or loan is the source of the gift or loan (see example below).
A donor is not the source of a gift (the ultimate gift) if they received a gift or loan from someone else who purposely gave the gift or loan to enable the donor to make the ultimate gift to the recipient.
Similarly, a donor is not the source of a loan (the ultimate loan) if they received a gift or loan from someone else who purposely gave the gift or loan to enable the donor to make the ultimate loan to the recipient.
For example:
John Smith gives Jane Doe $2,000, and tells Jane Doe to give half of the money to Bob White, a candidate in the upcoming election.
In this scenario, John Smith is the source of the gift and Jane Doe is not the source of the gift.
When Bob White goes to lodge a return for the gift of $1,000 received from Jane Doe, he will need to select ‘No’ when asked whether the donor is the source of the gift. He will then need to provide the relevant particulars for the true source of the gift, John Smith.