On January 20, 2016, the Honourable Diane Lebouthilier, Minister
of National Revenue (the "Minister"), announced that the
Canada Revenue Agency ("CRA") will commence winding down
its review of political activities of registered charities.
Minister Flaherty announced in the 2012 Budget that the
Government would be providing funding to the Charities Directorate
for two matters: enhanced audits of the political activity of
charities, and amendments to the T3010 to enhance reporting of
political activities by charities.
With this funding, CRA commenced a political activities audit
program proposing to audit 60 charities over a 4-year period. To
date, CRA has completed a total of 30 of the political activities
audits and confirmed that it will complete another 24 political
activities audits that are currently in process. Another six
charities were already selected to be audited, but the announcement
confirmed that CRA will not proceed to audit them under the
political activities audit program.
The audits that have been concluded revealed that charities were
substantially compliant with the rules on political activities. Of
the 30 completed audits, CRA decided to revoke the charitable
registration of only five charities. These revocations were
primarily as a result of factors that went beyond the involvement
of the charities in political activities. As a result of the
outcomes of the audits, the Minister has determined that the
political activities audit program should be terminated.
The Minister also stated that the Government of Canada
recognizes the role charities play in Canadian society and that
they provide valuable contributions to public policy and public
debate. The winding down of the political activities audit program
is assurance to charities that the Government respects the
contributions they make to these areas.
The Minister announced that, going forward, CRA will provide
further guidance to the sector to clarify the rules that govern
registered charities' involvement in political activities.
The Minister also announced that the Government of Canada's
commitment to openness and transparency requires the Government to
provide more information to the public on the regulation of the
sector. In order to meet this commitment, CRA will start publishing
an annual report on its activities and how it contributes to the
effective regulation of registered charities.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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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.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan 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.
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