Donation of Flow-Through Shares By: Arthur Drache C.M., Q.C. A recent letter published by the CRA[1] offers a comprehensive view of the tax treatment of flow-through shares. By way of reminder, flow-through shares are special shares of mining and exploration companies designed to encourage investment in those sectors. Certain types of shares of qualifying companies […]
Continuing under the new Ontario Not-for-Profit Corporations Act Any readers involved with a not-for-profit that is incorporated under Ontario legislation should be aware that the law in this area is about to change. The current Ontario Corporations Act (OCA) hasn’t changed substantially in nearly 60 years, so the new Ontario Not-for-Profit Corporations Act (ONCA) that […]
By Adam Aptowitzer The name “Parklane Charitable Donation Program” will be familiar to those that follow the news in the charitable sector. Originally the Program, like others, involved an out of pocket expense and charitable donation tax receipt, the former being several times less than the latter. In the case of Parklane the receipt generally […]
Loss Reduction Activities of a Non-Profit By Arthur Drache, C.M. Q.C. A recent ruling letter[1] from the CRA came to grips with the issue of whether a non-profit organization can maintain its 149(1)(l) status while trying to recover its losses and continue to meet its objectives. The NPO is currently in a loss position; losses […]
Taking the Path Less Travelled – Continuing Provincially By: Brent Randall Last month, we looked at some reasons why an organization may not want to continue under the new Canada Not-for-profit Corporations Act (“the CNCA”). We also considered the option of reorganizing the corporation as a charitable trust as a means to avoid being subject […]
Tax Court Decision of Major Impact to Charity Directors and Tax Professionals Alike By: Adam Aptowitzer A recent decision of the Tax Court of Canada in the Guindon[1] matter has completely changed the way the CRA can assess people who provide advice, information or paperwork related to a filed income tax return. As a result […]
REVOCATIONS! Every once in a while the Charities Directorate of the Canada Revenue Agency sends out a news release with details about a Charity that has had its charitable status revoked. It is interesting to compare the revocations the CRA widely publicizes in this way and the ones they do not. A quick search of […]
Maiden Voyage for the New Political Communication Rules By: Brent Randall With the recent provincial election in Quebec, an upcoming election in British Columbia, and speculation that Ontario may do the same, charities across Canada may be considering the impact they can make in the political arena. While we previously wrote that Budget 2012 maintained […]
Non-Profits and Taxable Subsidiaries By Arthur B.C. Drache, C.M. Q.C. Tax planning for tax exempt entities often involves the creation of “sibling” or controlled taxable corporations. Properly executed, the created corporations can carry on activities which are either prohibited to the parent or carry some risk that the parent is not willing to undertake directly. […]
In Incentive Lies Behaviour – If You Understand the Incentive By: Adam Aptowitzer Most Canadians are aware of the effect that RRSP contributions have on their taxes, and are aware of the deadline for making contributions each year. This is mostly due to the educational efforts of the banks and others that ‘sell’ RRSPs make […]