CRA Updates T4063, Registering a Charity for Income Tax Purposes
On May 8, 2015, CRA released an updated T4063, Registering a Charity for Income Tax Purposes. This
guide is intended to help applicants for charitable registration complete Form 2050, Application to Register a Charity under the Income Tax Act, which was last updated in 2011.
CRA Releases Updated GST/HST Guidelines and Information for Charities
In May 2015, CRA released an updated GST/HST Info Sheet (GI-067) Basic GST/HST Guidelines for Charities and an additional GST/HST Info Sheet (GI-066) How a Charity Completes its GST/HST Return. These versions replace the previous versions from June 2011. The new Info Sheets reflect the changes regarding GST/HST that have occurred in some provinces since 2011. GI-067 explains when charities must comply with specific GST/HST rules, such as when a charity is required to register for GST/HST purposes, including when a charity qualifies as a small supplier. GI-066 outlines the specific steps a charity must take to complete its GST/HST return. GST10 Application or Revocation of the Authorization to File Separate GST/HST Returns and Rebate Applications for Branches or Divisions was also updated. This form can be used by public service bodies, charity, and qualifying non-profit organizations who want to file separate GST/HST returns and rebate applications as separate branches or divisions.
National Volunteer Week Speech Highlights First-Time Donor’s Super Credit
On May 6, 2015, CRA posted an April 15, 2015 speech given by the Honourable Kerry-Lynne D. Findlay,
the Minister of National Revenue (“Minister”), at an event hosted by the Vancouver Fire Fighters’
Charitable Society, a registered charity in honour of National Volunteer Week. The Minister drew
attention to three charities-related non-refundable tax credits, the First-Time Donor’s Super Credit, the
Volunteer Firefighters’ Tax Credit and the Search and Rescue Volunteers Tax Credit.
CRA Commencing Legal Action Against CBC for Disclosure of Donor Names
On May 15, 2015, CRA issued a statement that it has sent final notice to the CBC and will commence
legal action to recover confidential taxpayer information that CRA inadvertently sent to CBC on
November 24, 2014. CBC published the information, which, according to the CBC report, contained
details about donations of cultural property, including donors’ identities and donation values, on
November 25, 2014. On the day of publication, CRA released a statement characterizing the breach as an
accidental disclosure and reported it to the Privacy Commissioner of Canada. Both CRA statements
indicate CBC was aware the information was protected, but CBC continues to refuse to return it to CRA.
Under section 241 of the Income Tax Act, CRA has an obligation to keep taxpayer information, including
certain information from registered charities and donors, confidential. As a public broadcaster, it will be
interesting to see whether CBC’s officials and representatives fall under the jurisdiction of section 241, as
it also applies to government entities other than CRA.