(Another) Update on COVID-19 pandemic economic and tax measures for charities and not-for-profits
This topics in this article are changing rapidly as the COVID-19 crisis unfolds. As such, we encourage you to check with Miller Thomson LLP’s Social Impact group for timely updates. Canada’s federal government continues to announce new economic measures and...
COVID-19 pandemic economic and tax measures for charities and not-for-profits
Canada’s federal government continues to announce new economic measures to help stabilize the economy during the COVID-19 pandemic. Outlined below are the measures announced thus far by the federal government, along with expansions to existing programs, that are available to...
Robert Hayhoe and Jordyn Allan prepared an article entitled: “Cultural Property Eligibility Clarified by FCA and Parliament”, which was published in the Canadian Tax Highlights, July 2019 issue. Robert Hayhoe and Susan Manwaring were ranked in the L’expert Guide to...
Does the CRA Have the Right to Ask Questions on an Audit or Just Review Documents?
The Canada Revenue Agency (the “CRA”) has broad powers of investigation in the audit process. In the course of conducting an audit, the CRA frequently requests that taxpayers provide records, answer questions, and attend interviews. For the most part, taxpayers...
Robert Hayhoe spoke on February 8, 2019, as part of a panel on topic “ Critically Assessing Recent Developments” as part of The Past, Present and Future of Charities and Political Activities at the Bora Laskin Faculty of Law at...
Major Developments In Political Activities Rules For Canadian Charities
The Exempt Organization Tax Review, January 2019, 31-38
Robert Hayhoe and Natasha Smith author an article discussing current law governing Canadian charities’ political activities. Read the article (by subscription only)
From Charity to Social Impact
Lexpert Magazine February 2019 Issue
Canadian society has long viewed charities (and other non-profit) organizations as being a wholly different category from businesses, sometimes called the “third sector” However, recently, we have begun to focus more on social purpose and social impact as goals, and...
CRA Announces Project on Ineligible Individuals Serving on Charity Boards
The Canada Revenue Agency (“CRA”) has just released its Report on the Charities Program 2015-2016 (the “Report”) in which it reports to the Canadian public on what it has been engaged in during the 2015-2016 fiscal period. While the Report...
Social Impact group lead Susan Manwaring was invited by the Senate to appear before the Senate Special Committee on the Charitable Sector to present on the impact of federal and provincial laws and policies governing charities, nonprofit organizations, foundations, and other similar...
Charitable organisations in Canada: overview
Robert Hayhoe and Sarah Fitzpatrick authored the “Charitable organisations in Canada: overview” for the 2018 Charity Global Guide, published by Thomson Reuters. The Q&A style guide provides an overview of key practical issues concerning charity law in Canada.
Canadian Income Tax on US Charities
How does a US charity make sure that it does not pay Canadian tax? By applying for an exemption letter from the Canada Revenue Agency (CRA). In Canada, only a charity that is a Canadian registered charity is exempt generally...
30 Months in Jail for Facilitating False Donation Tax Scheme
The Court of Appeal for Ontario has just upheld the conviction and 30-month jail sentence of a tax return preparer who facilitated false charitable donation claims. The Court in R. v. Ajise considered a situation where Mr. Ajise prepared tax...
Gala Event Gone Bad – President’s Club Charitable Trust
I never thought that I would write an article on why sexual assault and harassment should not be used as a charitable fundraising technique. Then I read press reports from England about the President’s Club Charitable Trust (the “Trust”). The...
Susan Manwaring will be speaking at the ONN Connector Salon at the Foundation House as part of a panel on “Emerging Trends & Surprising Disruptions” on the topic “Our Changing Legal/Regulatory Systems” in Toronto, ON on March 22, 2018. Susan...
Tax Court Confirms Interpretation of Clergy Residence Deduction
The Tax Court of Canada has decided a recent trio of cases, each involving the entitlement to the clergy residence deduction by rabbis teaching at religious day schools. The Court, consistent with prior decisions, confirmed that these teachers were not entitled...
Law Society of Ontario Approves Charities and Non-Profits Providing Legal Services
On September 28, 2017, the Law Society of Ontario, the self-governing regulator for the legal profession, approved in principle, the provision of legal services by civil society organizations – charities and non-profits. These services will need to be provided for...
Nicole D’Aoust and Natasha Smith presented at the AFP Congress 2017 on the topic: “You Can Donate That?! Non-traditional Gifts that can Make a Big Difference” in Toronto, ON on November 21, 2017. Kathryn Frelick and Karima Kanani presented a webcast...
NPO Tax Returns – Late Filing
Incorporated non-charitable not-for-profit organizations (“NPOs”) must file a T2 tax return with the Canada Revenue Agency (“CRA”) just like a taxable for-profit corporation. Additionally, each NPO, regardless of organizational form, that meets certain financial thresholds must file a T1044 Non-Profit...
Why Do We Need Members? We Have a Board…
Our incorporated charity and non-profit clients often wonder why they need members. Organizations with few governance participants, either because they are small or because they are controlled by a small group, sometimes wonder if they may operate with only a...
FCA Decisions on Charities
Canadian Tax Highlights, Volume 24, Number 5, May 2016
Courts Raise the Stakes on Tax Filings
The Canada Revenue Agency (“CRA“) and the Federal Court of Appeal have taken surprising positions recently that expose registered charities to revocation risk if they make mistakes on their T3010 – Registered Charity Information Return (“T3010“) and other tax filings....
Standing Committee on Finance releases report on terrorist financing in Canada: Charities pinpointed as funding sources
On June 18, 2015 Canada’s Standing Committee on Finance (the “Committee”) released its report entitled, Terrorist Financing in Canada and Abroad: Needed Federal Actions. The report summarized various presentations and submissions made to the Committee on topics such as the...
Intellectual Property Issues in Cross Border Arrangements
It is well-known that a Canadian registered charity ought not to transfer funds to a foreign or domestic entity that is not a qualified donee. However, it is also important to bear in mind the application of the Income Tax...
Considerations on Winding Up a Charity
We are asked from time to time to assist with the dissolution of an existing registered charity. However, often we suggest to our clients that it might be better for them to either amalgamate the existing charity into another charity...
Why the Absence of Global Charity Headquarters in Canada?
Canadians like to think of themselves as both internationally-minded people and as coming from a tradition of humanitarian action. However, few stop to ask why global charities are never headquartered in Canada. There is no major international charity with affiliated...
Ontario Court Comments on Executive Compensation
Earlier this year, the Ontario Court of Appeal decided Unique Broadband Systems, Inc. (Re), in which it overturned the trial judge’s decision to award the former CEO of Unique Broadband Systems (“Unique”) severance and upheld the lower court’s decision not...
CRA Sends CNCA Notices
As we hope you know from reading previous issues, the Canada Corporations Act has been repealed and replaced by the Canada Not-for-Profit Corporations Act (CNCA). All organizations incorporated under the Canada Corporations Act need to continue formally into the new...
Leave to Appeal Denied by Supreme Court of Canada in Neville v. National Foundation for Christian Leadership
The Supreme Court of Canada has denied leave to appeal from the decision of the British Columbia Court of Appeal in Neville v. National Foundation for Christian Leadership. The background to the case involves a prior decision of the Tax...
Supreme Court to Decide Scope of Charter Protections for Tax Penalties
The Supreme Court of Canada has granted leave in Guindon v. R., an appeal involving the question of whether tax civil penalties are criminal in nature and therefore whether they give rise to Charter protections. As reported on in our...
CRA Wins Another Tax Shelter Appeal in the Federal Court of Appeal
On December 6, 2013, the Federal Court of Appeal handed the CRA yet another victory in an appeal brought by a donor to a charitable donation tax shelter in Kossow v. The Queen. The Court of appeal denied Ms. Kossow’s...
CNCA – Continuance deadline approaches
In October of 2011, the Canada Not-for-Profit Corporations Act (CNCA) came into force. As a result, every charity or non-profit organization incorporated federally must file articles of continuance with Industry Canada before October 17, 2014 or risk being dissolved. As...
No Charter Protection in Tax Shelter Civil Penalties Case
In our December 2012 issue, we commented on the decision of the Tax Court in Guindon – that third party civil penalties were really criminal and therefore gave rise to Charter protection. That decision has now been overturned by the Federal...
Court Criticises CRA for Delaying Assessment of Donation Shelter Donations
In a recent case, the Federal Court confirmed that the CRA is obliged to examine and assess a tax return with “all due dispatch” even if the taxpayer donated to a charitable donation shelter. In Ficek v. A.G. Canada...
CRA Releases New Resources on Political Activities
In late March, CRA released a number of new resources to assist charities in understanding CRA’s interpretation of the rules related to political activities by registered charities. CRA’s main official policy statement on political activities, CPS-022, was published in 2003....
Charities Taxation, Policy and Practice
Thomson Reuters Carswell, 2007-present
Ontario Court Confirms Costs Consequences of Litigation Positions
In our December 2011 issue we wrote on the decision of the Ontario Superior Court in VON Canada v. Greater Hamilton Wellness Foundation. The Court found that the Foundation, which had been established under the name of the Victorian Order of...
Federal Budget Review
View the Federal Budget Review
US Non-Profits Funding Advocacy in Canada
There have been a number of recent public statements criticizing “foreign” funding of environmental advocacy by Canadian charities and non profit organizations. This public discussion arises in the context of US and Canadian organizations engaged in environmental education and advocacy...
Turf Tussle Erupts in Charity Over Fiduciary Duty*
The Ontario Superior Court of Justice has released its decision in Victoria Order of Nurses for Canada v. Greater Hamilton Wellness Foundation, a case in which a parallel foundation sought to expend its assets contrary to its objects by refusing...
STEP Journal, London, UK, 78-79
The English Approach to Payments Made to a Foreign Charity – A Cause for Jealousy?
Canadian charities that spend money outside Canada will be well aware of the restrictive nature of the Canadian rules on foreign charitable expenditure. Interestingly, HMRC, the English tax authority, has just released its new and slightly more restrictive policy on...
Federal Court of Appeal Denies Registration to News Organization
In June, the Federal Court issued its decision in News To You Canada v. Minister of National Revenue in which it denied the organization’s appeal of the Canada Revenue Agency’s refusal to register it as a charitable organization. This decision,...
2011 Federal Budget: Provisions Regarding Charities and Other Qualified Donees
Charity Talk, Canadian Bar Association
Budget 2011 – Update
As described in detail in our March issue, the 2011 Budget included a number of charity tax changes. However, the government was then defeated and an election called. Despite these events, we suggest that prudent charities behave generally as if...
Impact of Budget 2011
The 2011 Federal Budget (the “Budget”) contains a number of anti-avoidance measures described below. It does not contain any measures designed to assist with charitable giving or to lessen the regulatory load on Canadian charities. Rather the changes proposed are...
Budget Gives Charity Governance Control to CRA
The Government believes that there is a pattern of the same individuals being involved in multiple abusive charities. However, the Budget materials admit that under the current rules the CRA may be unable to refuse registration even if there is...
Tax Court Charitable Jurisdiction Not In Budget
There have been a number of charity tax proposals put forward in the last year by the charitable sector as suggestions for change. One change that we thought had a real chance of success (because it had no real tax...
When Should Charities Indemnify Directors?
A recent decision of the Ontario Court of Appeal clarifies when a charity must indemnify its directors. Pandher v. Ontario Khalsa Darbar was an appeal of the costs portion of an Ontario Superior Court of Justice decision in what appears...
Breaking Down the Borders — Operating Charitable or Tax Exempt Organizations Across the Canada/US Border
The 2011 Lexpert®/American Lawyer Guide to the Leading 500 Lawyers in Canada
New Charity Tax Specific Graduate Degree
Osgoode Hall Law School at York University has launched a new part time Master of Laws (LL.M.) degree specializing in Charities and Not-for-Profit Tax Law. This degree, which we believe to be the first law degree of its kind anywhere...
New Charity Specific Graduate Degree
Osgoode Hall Law School at York University has launched a new part time Master of Laws (LL.M.) degree specializing in Charities and Not-for-Profit Law. This degree, which we believe to be the first law degree of its kind anywhere in...
New CRA Guidance on Foreign Activities
On July 8, 2010 CRA released an important new Guidance document: “Canadian Registered Charities Carrying Out Activities Outside Canada” (available at http://www.cra.gc.ca/tx/chrts/plcy/cgd/tsd-cnd-eng.html). This new Guidance replaces CRA Guide RC4106. It had been the subject of an extensive consultation process in...
Clergy Residence Deduction for Disabled Clergy
The Income Tax Act provides a tax deduction from the income of a member of the clergy from office or employment equal to the value of the individual’s housing if the individual meets a status and function test. The deduction...
Expedited CRA Charitable Registration
In the past we have been critical of the CRA Charities Directorate for slow decisions on applications for charitable registration. However, even when the general registration backlog has been significant, it has always been possible to request expedited service in appropriate circumstances....
A Sketch of the Income Tax Treatment of Endowments
The Philanthropist, 93-96
Canadian Government to Match Haiti Gifts
Federal Corporate Statute – A Problem for International Charities?
Update on the Charitable Registration Process
Guidance Released by The Canada Revenue Agency Charities Directorate on Fundraising by Registered Charities
CRA Publishes “Consultation on the Proposed Guidance in Activities Outside of Canada for Canadian Registered Charities”
Participating in a Donation Tax Shelter Can Be Very Costly
National Charity Law Symposium
CRA Publishes Helpful “Checklist for Charities on Avoiding Terrorist Abuse”
CRA Charity Audit Crackdown
Step Journal, 43-44
Football Canada RCAAA Status Revoked
The Tax Court of Canada: Charity Suspension Postponements Unavailable?
Canadian Tax Journal, 167-176
The Continuing Saga of Charitable Donation Tax Shelters in Canada
The Exempt Organization Tax Review, 159-161
CRA Policy Update – Volunteerism, Umbrella Organizations and Sport
Charity Tax Appeal Jurisdiction
Public Benefit and Canadian Public Hospitals
The Exempt Organization Tax Review, 149 - 152
Public Benefit and Canadian Public Hospitals
The Exempt Organization Tax Review, Vol. 59, No. 2
Charitable Building Projects Outside Canada
CRA Releases New List of Qualifying Foreign Charities
Tax Court Implies Split-Receipting Possible Prior to Amendments
Donations of Medicines for the Developing World
Quebec Changes Tax Treatment of Clergy
Department of Finance Releases Charity Tax Legislation
Charity Audit Crackdown
For Profit Philanthropy?
Tax Rules Prevent Charity Investments in Limited Partnerships
2006 Federal Budget Changes For Charities
Federal Court of Appeal on Foreign Activities
CRA Now Accepts Gifts to U.S. Religious Schools
Federal Court Reviews CRA Charity Audit Undertaking Letter
Gifts by Canadians to U.S. Religious Schools
New Compliance Obligations For Charities Issuing Large Receipts
Civil Marriage Act Includes Protection For Religious Charities
New Charity Tax Regime
Major New Study Compares Canadian Voluntary Sector to The World
U.S. Governance Reform Proposals
New CRA Guide on Taxation of Charitable Donations
Changes Recommended for Charity Tax Administration¹
Helpful New CRA Policy on Foreign Activities by Canadian Charities
The Private Giving Foundation Donor Advised Fund
Budget Legislation Released
Tax Court: Lawyer Participant in Charitable Donation Tax Shelter Escapes Penalties
CRA on Gifts in Kind of Software and Website Design
Budget Also Amends Revocation and Annulment of Registration Rules, Increases Information Disclosure
Tax Court Rejects Retail Value for Charitable Donation of Art
Charitable Donation Tax Shelters Closed December 5
New CCRA Policies Released
New CCRA Policy on Low-Income Housing Charities
Issuing Donation Receipts for Fundraising Events – Part 1
Federal Report Issued Recommending Better Charity Regulation*
CCRA Policy on Volunteer Expenses
CCRA Policy – Names on Receipts
CCRA Releases Policy Guidance
Federal Court of Appeal on Related Business
Tax Changes for Charities
Charities and Terrorism
Federal Court of Appeal on Canadian Charities Using Foreign Agents
Gifts By Will
New Proposals for Charities Regulation
Large Gifts Resulting in Private Foundation Status
New Clergy Residence Form
Withholding Tax on the Elvis Stojko Show
2001 Ontario Budget
New Ontario Charities Accounting Act Regulations
Ontario Budget Update – Tax Rate Reductions; New Provincial Individual Income Tax System