Trust reporting rule – A new (and unnecessary) compliance burden for registered charities?
As part of seeking to prevent inappropriate tax avoidance using trusts, the Federal Department of Finance recently introduced new trust reporting rules that will apply beginning at the end of 2023. These rules are designed to increase transparency by requiring...
Distributing dividends to members? Your non-profit’s tax-exempt status may be at risk
The Canada Revenue Agency (“CRA”) reminds certain non-profit organizations (“NPOs”) that distributing funds received by them as taxable dividends will jeopardize their tax-exempt status. In CRA View 2018-0776681E5 (dated March 30, 2023) (“CRA View”), the CRA clarified the tax implications...
Summary of proposed changes to Ontario’s Corporations Act for share capital social clubs
Background Currently, Share Capital Social Clubs (“Social Clubs”) incorporated under Ontario’s Corporations Act (“OCA”) are required to continue under one of three (3) specified acts to avoid dissolution before October 19, 2026. The specified acts are as follows: Business Corporations...
Administrative dissolution of charities and not-for-profits introduced by Corporations Canada
This July, Corporations Canada will begin issuing administrative dissolutions to not-for-profit (“NFP”) corporations governed by the Canada Not-for-profit Corporations Act (“CNCA”), that have not filed their annual returns for three (3) or more consecutive years. Corporations Canada requires every active...
Social purpose real estate projects
Social purpose real estate projects: The goals Social purpose real estate development is an endeavor that seeks to address challenging and pressing issues such as affordability of suitable housing and access to rental space in communities across Canada. The goals...
Charitable donations by an estate and “substituted property”
In a previous article,[1] we discussed amendments to the Income Tax Act (Canada) (the “Act”), enacted in 2015, that significantly changed the rules for testamentary charitable gifts made in 2016 and future tax years. One of the requirements introduced as...
Alberta’s revised Trustee Act: Implications for charities and non-profits
Alberta’s Trustee Act was recently overhauled and revised. Bill 12, which revised the original act, received Royal Assent on April 29, 2022 and came into force on February 1, 2023 (the “Act” or the “New Act”). The Act attempts to...
Important changes for BC societies taking effect in May 2023
This past weekend, parts of British Columbia were as hot as 27 degrees—a first for 2023. But springlike weather wasn’t the only change greeting British Columbians at the end of a dreary April. The Government of BC announced that new...
Testamentary charitable giving and the graduated rate estate: A refresher
Forms of testamentary charitable giving Charitable gifts made by testators through their wills can take many forms: outright legacies or bequests; a gift of all or part of the residue of the estate; a contingent gift to be made in the...
Birhane v. Medhanie Alem Eritrean Orthodox Tewahdo Church preaches important lessons for Ontario charities and not-for-profit organizations and their directors
Introduction The recent Ontario Superior Court of Justice (the “Court”) decision in Birhane v. Medhanie Alem Eritrean Orthodox Tewahdo Church (“Birhane”) reflects the importance of organizations upholding their electoral procedural requirements as required by corporate law and governing documents. This...
