Articles 2018

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Mandate Letters Issued to Amend ITA Concerning the Charitable Status of Certain Organizations

  • January 31, 2022
  • Terrance S. Carter

Mandate letters issued by the Prime Minister include direction to introduce amendments to the ITA that would make certain organizations ineligible for charitable status. It remains to be seen what amendments may be introduced, but the proposal is concerning as it specifically targets an existing segment of the sector and it could have unintended long-term consequences for all charities. Any proposed amendments therefore need to be carefully monitored.

Charity and Not-For-Profit Law, Student Forum

New Resources about Community Investing

  • January 24, 2022
  • Ryan M. Prendergast

Are you looking for information about community impact investing? Two resources are now available for charities and not-for-profits in Ontario from the Cooperation Council of Ontario, Ontario Trillium Foundation and Canadian CED Network. There is a report to help you understand the current state of community investment organizations in Ontario and a guide that outlines the phases of development for community investment cooperatives.

Charity and Not-For-Profit Law, Student Forum

No Tax Rebate for Charity Housing Project's Market Rate Units

  • January 24, 2022
  • Nancy E. Claridge and Adriel N. Clayton

Charities that qualify as designated municipalities can be eligible for a rebate from the GST/HST paid on property and services, but does a supply of market rate units for moderate income households qualify? A recent CRA interpretation letter explains how section 259 of the Excise Tax Act and CRA’s info sheet Municipal Designation of Organizations Providing Rent Geared to Income Housing might apply in this situation, and why the charity’s market rate units would not qualify for the rebate.

Charity and Not-For-Profit Law, Student Forum

Annual General Meetings in the COVID-19 Pandemic

  • December 11, 2021
  • David A. van der Woerd, Derek A. Sheppard, Humza M. Khan, Ross & McBride

The COVID-19 pandemic has created unique situations for corporations, including social distancing orders. These orders are challenging in the regular course of business and particularly tricky if an annual general meeting (AGM) timeline fell in the midst of these orders. This paper outlines the most recent federal and provincial legislation relevant to AGMs and provides general guidance to corporations for holding restriction-compliant AGMs.

Charity and Not-For-Profit Law, Student Forum

CRA Considers if NPO Can Add a Secondary Source of Income

  • November 08, 2021
  • Theresa L.M. Man

Can a non-profit organization add a secondary business and use the net income to fund its non-profit objectives? Can it fund the business from a reserve accumulated from excess member contributions held for future capital expenditures? Can it provide services to non-members outside its geographical area? This article will explain CRA’s view on these questions, with reference to the Income Tax Act and Interpretation Bulletin IT-496R.

Charity and Not-For-Profit Law, Student Forum

$17 Million Gift to Private Foundation Ineligible for Tax Credit

  • November 08, 2021
  • Terrance S. Carter and Ryan M. Prendergast

The Tax Court of Canada decision in Odette (Estate) v the Queen serves as a warning that private foundations and their donors need to be sensitive to the complex rules that apply to them, and in particular to proceed very cautiously when considering making gifts of non-qualifying securities. In this case, the court dismissed an appeal from an assessment denying the taxpayer a charitable donation tax credit. Read the full article for the court’s analysis of s.118.1(13)(c) of the Income Tax Act.

Charity and Not-For-Profit Law, Student Forum

Federal Court Finds CRA Can Compel Taxpayers to Disclose Oral Agreements

  • November 08, 2021
  • Ryan M. Prendergast

The Federal Court case of Canada (National Revenue) v Miller examines the CRA’s extensive audit powers. It affirms that the CRA can compel the production of any information that should be documented in books and records, even if a transaction was originally an oral agreement. In an audit, charities and NFPs should be prepared to make reasonable efforts to accurately respond to requests for documents and information.

Charity and Not-For-Profit Law, Student Forum

Ontario Court Rules on Decade-Long Property and Membership Dispute

  • October 23, 2021
  • Esther S.J. Oh

After a lengthy and complicated dispute between members of the Hamilton branch of the Royal Yugoslav Army Combatants’ Association in Canada-Draza Mihailovic (the “RYACA”), the Ontario Superior Court of Justice released its September 1, 2021 decision concerning membership and decision-making rights concerning property owned by RYACA in Varjacic et al. v Radoja et al.

Charity and Not-For-Profit Law, Student Forum

Corporations Information Act (Ontario): Corporate Annual Return Filing Changes

  • June 21, 2021
  • Kimberley A. Cunnington-Taylor, B. Soc. Sc., LL.B., barrister, solicitor, notary public

If you are a business, not-for-profit, or charitable corporation incorporated in Ontario, or a foreign business corporation required to report Ontario income taxes, then you are required to file a corporate annual return under the rules of the Corporations Information Act (Ontario).

Charity and Not-For-Profit Law, Student Forum

Government Responds to Recommendations of Senate Report on Charities & NFP Sector

  • May 03, 2021
  • Terrance S. Carter and Esther S.J. Oh

The Federal Government published a detailed response letter on March 30, 2021 to the Senate’s special report on the charitable and non-profit sector. The 20-page letter from the Minister of National Revenue reviews and responds to all of the 42 Recommendations. This article provides an overview of the Government’s extensive response to the Report and highlights comments of particular interest.

Charity and Not-For-Profit Law, Student Forum