Advisory Committee on the Charitable Sector Releases Report #4
By Theresa L.M. Man, Jacqueline M. Demczur & Terrance S. Carter
The Advisory Committee on the Charitable Sector ("ACCS") released its Report #4, on October 9, 2024, subtitled "Towards a federal regulatory environment that enables and strengthens the charitable and non-profit sector" ("ACCS Report #4"). This is the fourth of a series of ongoing reports by the ACCS. In this ACCS Report #4, the ACCS makes 18 recommendations for action in several areas. This Bulletin provides an overview of the ACCS Report #4.
As previously discussed in earlier Charity & NFP Law Bulletins, the ACCS was established in 2019 to serve as a consultative forum between the Government of Canada and the charitable sector. Its purpose is to foster dialogue on emerging issues affecting charities and to ensure the regulatory framework supports the vital work charities undertake. Following the 2019 Senate Special Committee on the Charitable Sector's report, Catalyst for Change: A Roadmap to a Stronger Charitable Sector (the "Senate Committee Report"), the ACCS was tasked with considering its recommendations.
Report #4 provides insights into various issues affecting Canada's charitable sector. It sets out recommendations to better improve the charitable sector, including modernizing the regulatory framework for charities, improving transparency, increasing collaboration with Indigenous organizations, and simplifying the charitable registration process, among others. The report highlights the importance of ongoing consultations with stakeholders to ensure regulatory approaches align with the sector's needs, and stresses the importance of government-charity partnerships to address societal challenges.
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CRA News
CRA's Guidance on Filing Information Returns Electronically (Tax Slips and Summaries)
The Canada Revenue Agency's ("CRA") webpage on electronic filing, which was last updated on October 18, 2024, outlines how tax information returns can be filed electronically, such as T4, T4A, T5 and other types of returns, through online methods. It details options like Web Forms and Internet File Transfer (XML) for submitting original, amended, or cancelled returns securely. Benefits include quick confirmation of successful filing, flexibility to update filings, and the option for authorized representatives to file on a taxpayer's/organization's behalf. There is also guidance on making post-filing corrections.
The webpage covers the following four sections, hyperlinked to each page:
The CRA's instructions on electronic filing covers key steps for businesses, including steps to determine the filing due date, determine if an organization must file electronically, and using XML formatting specifications for valid submission. The page outlines penalties that apply for incorrect submission methods and provides resources for setting up compatible XML files, with specific instructions on encoding and schema validation for different tax forms. Compliance is crucial as of 2024, as more returns require digital filing.
The 2025 XML specifications and schema for the electronic filing of information returns are now available, and will be accepted for processing starting January 13, 2025.
b) How to file
The CRA outlines the steps for electronically filing information returns as follows:
- Prepare Documentation: Create an XML file for your return.
- Determine your filing method: Use either Web Forms for small volumes (up to 100 slips) or Internet file transfer for larger submissions. These can be accessed via My Business Account or Represent a Client. To access directly to the Web Forms or Internet file transfer applications, you will need your account number or web access code.
- Transfer the file to the CRA: Instructions are provided for filing with Web Forms or Internet file transfer. Send your file, and receive a confirmation to ensure it was successfully filed.
The CRA webpage currently notes that electronic filing will be temporarily unavailable from December 2, 2024, to January 13, 2025.
c) Make correction after filing
The CRA provides a clear process for amending or cancelling tax slips after an initial filing. Both Web Forms and Internet File Transfer (XML) can handle corrections, allowing users to adjust data while following the CRA's specific protocols.
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