Over the last couple of years the media has been filled with stories and there has been much fretting in the voluntary sector about the Canada Revenue Agency (CRA)’s auditing of registered charities’ Political Activities. It is unclear as yet, however, how much regulatory compliance action will be taken based on isolated or individual acts […]
Independent Contractor or Employee
With business culture evolving, we see increasingly varied means to manage one of the most expensive and critical components of a business – human capital. Whether a business is motivated to reduce labour costs, streamline available skills, or minimize staff during slower periods, At first blush, it may appear easy to determine whether individuals are employees […]
A helpful Guidance on Ineligible Individuals, but questions remain
Andrew Coyne recently drew much attention when he mused in the National Post about the merit of abolishing the charitable tax credit so registered charities could have free rein to engage in political activities. However, the credit is arguably at far greater risk from the abusive tax shelters that have been seen over the last […]
Is Good Luck Taxable?
Easy Money There seem to be plenty of opportunities to win – big and small – in our lives, from lotteries to radio contests to a friendly wager with a friend. Whether it’s $10 on who wins the golf game, or $10 million from the lottery, does the tax man share in our good fortune? […]
Judging Guidance
It is trite law that guidance about registered charities issued by the Canada Revenue Agency (CRA), through its Charities Directorate, does not have the force of legislation or regulations. Courts can reject or ignore it when determining the permissibility or impermissibility of an organization’s conduct and the consequences flowing from that conduct. The Income Tax […]
Tax Issues for New Canadians
While there are many attractions to Canada, I cannot recall anyone attracted by a desire to experience our income tax system! Like most developed tax systems, ours can be extremely complex, and can impose results perceived as neither just nor equitable. Many tax issues are unique to new Canadians, while others are more likely to […]
Tax Problems
As I write this a controversy is playing out in the United States over apparent targeting of Tea Party and other conservative groups by local offices of the Internal Revenue Service (IRS) to determine if they met American statutory requirements for exemption from tax. Under U.S. law such groups must be constituted primarily for social […]
More Clarity on Program-Related Investment Rules in New CRA Guidance on Community Economic Development
Although the idea that charities ought to be more entrepreneurial is frequently lauded these days, the practical difficulties of doing so are easy to underestimate. One aspect of this is the suggestion that charities could or should engage in more revenue-generating activities as a means of advancing their mandates. More of such activity would not […]
The Taxpayer Bill of Rights
The Taxpayer Bill of Rights is a set of fifteen statutory and administrative rights outlining the service standards that Canadian taxpayers can expect in their dealings with the Canada Revenue Agency (CRA). The Bill was introduced in 2007 on the premise that increased accountability and transparency on the part of the CRA would, in turn, […]
2012 Federal Budget Features Tighter Reporting on Charities’ Political Activities
Now charities provisions in the 2012 federal Budget generated more attention than any measures relating to the sector have in a very long time. The government announced that it was tightening rules around charities’ political activities. The focus of the new requirements was mostly on enhanced reporting; however, embedded in the announcement was a crucial […]
