BLG's Charities and Not-for-Profit Group held its 15th
Annual Sector Update for Charities and Not-for-Profit Organizations
on November 17, 2014 in its Toronto office.
For the Tax Update, I presented on "A Changing
Landscape" for charities and not-for-profit
organizations. For charities, recent developments include the
Canada Revenue Agency's ("CRA's") increasing
scrutiny of political activities of charities with political
activities audits. Notably, both Canadian and international
media outlets are querying whether that scrutiny results from a
Harper government agenda against charities critical of that
government's policies, particularly with respect to natural
resource extraction. Regardless of the impetus behind the
audits, charities should be aware that the CRA is paying more
attention to political activities when engaging in advocacy.
Other 2014 developments with respect to charities include new rules
that provide more flexibility regarding gifts made by will, which
allow for allocation of a donation tax credit between the deceased
individual and the estate, and new CRA guidance on sanctions when a
charity has ineligible individuals in a position of power or
Regarding not-for-profit organizations ("NPOs"), 2014
was a year heralding potential significant changes. The
highly anticipated results of the CRA's Not-for-Profit
Organization Risk Identification Project were released in February
in a Project Report, which, unfortunately, didn't do much to
advance an understanding of the scope within which the CRA expects
NPOs to operate when generating revenue. Shortly before the
Report was released, the federal government announced a
consultation on NPOs with the tabling of the 2014 Budget, with a
view to determining whether the tax exemption for NPOs remains
"properly targeted". Though it is still an open
question as to whether the NPO tax exemption provision will be
amended, we recommend that NPOs ensure that their voices are heard
during the upcoming consultation process – or else risk being
stuck with the CRA's restrictive position on what NPOs can do
to generate revenue.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
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).