As reported in our April 2017 Charity & NFP Law Update, the double registration process for charities wishing to operate in Québec was eliminated as of January 1, 2016 as a result of an amendment to Québec’s Taxation Act brought about by Regulation to amend the Regulation respecting the Taxation Act, that was introduced by Regulation to amend various regulations of a fiscal nature on April 12, 2017. While the elimination was originally proposed in the 2016 Québec Budget, the budget did not clarify whether charities are still required to file the separate information return.
As a result of the elimination of double registration, charities registered under the ITA will no longer need to file a separate application for charitable registration in Québec (TP-985.5-V form). Instead, they are deemed to have also been registered in Québec, subject to the power of the Québec Minister of Revenue to refuse, cancel or revoke a registration or to modify the charitable designation. However, even though charities wishing to operate in Québec are no longer required to obtain charitable registration in that province, all charities carrying on activities in Québec are still required to file the separate information return (TP-985.22-V form) within six months after year end.