By Arthur Drache C.M., Q.C. At the end of August, the CRA published a lengthy Guidance (36 printed pages) dealing with its views on who are ineligible individuals under the charity provisions of the Income Tax Act.1 The ineligible individual provisions in the Income Tax Act came into force on January 1, 2012. These provisions […]
Ontario Budget Would Hit Higher Income Donors
By Arthur B. C. Drache, C.M., Q.C. As most readers will be aware, Ontario recently underwent a provincial election when it became clear that the Budget brought down on May 1 would be defeated, causing Premier Kathleen Wynne to pull the plug and call for the vote on June 12. Her Liberal party came out […]
Another Cautionary Reminder
By Arthur B. C Drache Over the years, one of our themes has been the need to take steps to protect an organization’s assets even from the possible depredations of employees and volunteers. While no single step can offer complete protection, one of the most basic protective approaches is to require at least two signatures […]
Community Foundations as a Wind-Up Destination
By: Arthur B. C Drache C.M., Q.C. When the Income Tax Act was re-written back in 1976 to create a whole new regime for charities (what is now embodied in section 149.1) one of the most far-reaching changes was the requirement for all charities to file public information returns, though by today’s standards the forms […]
Submission on Incentives for Charitable Giving
Submitted to The Standing Committee on Finance View PDF
Who Signs the Organization’s Cheques?
Who Signs the Organization’s Cheques? By Arthur Drache, C.M. Q.C. A couple of months ago in the Ottawa area, there was a puzzling issue with regard to the disappearance of about $70,000 from the accounts of a parents’ council at a local primary school. The funds were primarily from monies paid by parents and were […]
Donation of Flow-Through Shares
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 […]
Loss Reduction Activities of a Non-Profit
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 […]
Non-Profits and Taxable Subsidiaries
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. […]
Tough Ruling in Non-Profit Distribution to Members
Tough Ruling in Non-Profit Distribution to Members By Arthur Drache C.M., Q.C. A recent ruling letter[1] from the CRA takes a fairly hard line on the distribution to members, a position which in our view can certainly be disputed. The following is the fact situation. A non-profit organization provides, among other services, internet services to […]