By Adam Aptowitzer Typically, because charities are subject to so much regulation and not-for-profits comparatively little, most focus from the sector tends to fall on the former. However, there are changes both recent and expected that not-for-profits should be planning for. The first and most obvious change is the new suite of corporate laws that […]
Close Encounters of Special Act Corporations
By Joel Secter The Canada Not-for-profit Corporations Act (CNCA) establishes a new set of rules for not-for-profit corporations in Canada. These new rules replace the Canada Corporations Act (CCA). Part 19 of the CNCA applies to any corporation without share capital incorporated by a special act of Parliament and not continued under another act. For […]
Bylaws – Who Needs em
Bylaws: Who Needs ‘Em By: Adam Aptowitzer The ongoing changeover of Federal corporations to the Canada Not for Profit Corporations Act is raising interesting questions about the bylaws that may have been used by a corporation since its inception. (It bears mentioning that the same questions arise in the context of Ontario non share capital […]
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 […]
Accumulation of Profits in a Non-Profit Organization
Accumulation of Profits in a Non-Profit Organization By Arthur Drache A ruling letter released by the CRA at the end of 2012[1] offers some pithy comments on the situation where a non-profit organization has accumulated significant surpluses. The document has been so redacted vis a vis the factual background that details are sketchy but the […]
Non Profit Organizations and the Income Minefield
Non-Profit Organizations and the Income Accumulation Minefield By Alexandra Tzannidakis Under section 149(1)(l) of the Income Tax Act, entities that meet the definition of a “non-profit organization” (NPO) are exempt from paying federal income tax. The section defines an NPO as a club, society or association that is not a charity but is organized and […]
Residential Condos as Non-Profits
Residential Condos as Non-Profits By Arthur Drache, C.M. Q.C. In the past year or so there have been some concerns expressed as a result of some CRA Technical Interpretations[1] about whether certain corporations qualify as non-profit corporations under paragraph 149 (1)(l) of the Income Tax Act.the potential implication being that perhaps the might be taxable […]
Donations to a Non-Profit
Donations to a Non-Profit By Arthur Drache, C.M. Q.C. A recently published letter by the CRA[1] deals with the treatment of “donations” to a non-profit organization.clearly distinct from a donation to a registered charity. The discussion may be of particular interest to non-profits which are of considerable size and which have offices or other physical […]