CRA Update
Non-Profit Organizations and Loss of Status CRA released a technical interpretation on the consequences to an organization that no longer qualifies as a non-profit. First, there is no formal notification process required. The Income Tax Act deems the organization to...
Gifts by Will – Section 118.1(5)
On October 7, 2009, Canada Revenue Agency (“CRA”) issued a technical interpretation on: “Whether a gift by will may be claimed in a particular situation, where an individual died and the individual’s will instructed that the residue of the estate...
HST Special Net Tax Calculation for Charities
Ontario Revenue recently released Prepare for Ontario’s HST Tax Tip #5. In addition to discussing HST for public service bodies, the tip sheet included the following information for charities: The GST/HST framework provides a separate special net tax calculation for...
Gifting New and In-force Insurance Policies to Charities – Issues That a Charity Must Take Into Consideration
Compensation Cap for Charity Employees
A recent private members bill introduced by Albina Guarnieri, Member of Parliament for Mississauga East, would give the Canada Revenue Agency the discretion to revoke the charitable status of a charity where it pays a single executive or employee annual...
What Counts as a Donor Benefit? A Recent Case on Scholarships
In January 2010, the Tax Court of Canada released its decision in Coleman v. M.N.R. The case provides guidance on the approach that courts will take in determining whether a benefit has been received by a donor in respect of...
HST Primer for Charities and Non-Profits
Ontario and British Columbia will be “harmonizing” their provincial sales tax with the GST, effective July 1, 2010. Instead of a 5% GST and 8% Retail Sales Tax (Ontario) or 7% Social Service Tax (B.C.), there will be a single...
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....
New Exemptions from Land Transfer Tax for Charities in Ontario and Manitoba
We have good news from two provinces regarding the application of land transfer tax to charities that are restructuring. Ontario The Ontario Budget 2010 proposes regulatory amendments to the Ontario Land Transfer Tax Act to exempt certain transfers of land...
NPO Status: The Requirement Not to be a Charity
CRA has recently provided guidance on one aspect of the requirements for tax-exempt status as a non-profit organization (“NPO”) under the Income Tax Act. Specifically, CRA commented on the requirement that, in order to qualify as an NPO, an organization...
