Non Profit Tax Exempt Entities

29 mars 2012

( Disponible en anglais seulement )

Absent from the Budget is any proposal to alter the current regime that exempts non-profit organizations that are not charities, from tax on their income.

Organizations that do not otherwise qualify as charitable but are otherwise organized for social welfare, civic improvement, recreation or any purpose other than profit, are exempt from tax under paragraph 149(1)(l) of the Income Tax Act.  This long standing exemption from tax (it was originally enacted in 1917) has come under much
greater Canada Revenue Agency scrutiny in the past few years.

The Canada Revenue Agency is engaged currently in a program of auditing non-profits across Canada.  It is understood at this time that the audit initiative would target 1400 organizations and is an information gathering program to give the government a better understanding of the revenue generation activities pursued by tax exempt non-profit organizations.

Some in the sector were concerned that the Government would introduce changes to the non- profit tax exemption provisions in this Budget.  It did not.  We continue to encourage the Department of Finance and the Canada Revenue Agency to consider entering into a dialogue with sector organizations if they have concerns in this area before making ill-conceived changes to the current regime.

Those who are interested in reading about other sections of the Budget may wish to consult Miller Thomson’s general Budget Release.

Avis de non-responsabilité

Cette publication est fournie à titre informatif uniquement. Elle peut contenir des éléments provenant d'autres sources et nous ne garantissons pas son exactitude. Cette publication n'est ni un avis ni un conseil juridique.

Miller Thomson S.E.N.C.R.L., s.r.l. utilise vos coordonnées dans le but de vous envoyer des communications électroniques portant sur des questions juridiques, des séminaires ou des événements susceptibles de vous intéresser. Si vous avez des questions concernant nos pratiques d'information ou nos obligations en vertu de la Loi canadienne anti-pourriel, veuillez faire parvenir un courriel à privacy@millerthomson.com..

© 2020 Miller Thomson S.E.N.C.R.L., s.r.l. Cette publication peut être reproduite et distribuée intégralement sous réserve qu'aucune modification n'y soit apportée, que ce soit dans sa forme ou son contenu. Toute autre forme de reproduction ou de distribution nécessite le consentement écrit préalable de Miller Thomson S.E.N.C.R.L., s.r.l. qui peut être obtenu en faisant parvenir un courriel à newsletters@millerthomson.com.