Charity & NFP Law Bulletin No. 381, March 23, 2016
On March 22, 2016, federal Finance Minister Bill Morneau tabled the first budget of the Liberal majority Federal Government (“Budget 2016”). While Budget 2016 made good on the Liberal election platform to focus on economic growth, job creation and supporting a strong middle class, Budget 2016 does not include any new tax incentives for the charity and not-for-profit sector, as has been enjoyed in previous federal budgets. Budget 2016 also did not follow up on the 2014 Federal Budget announcement that there would be a review of the tax exemption status for non-profit organizations under paragraph 149(1)(l) of the Income Tax Act (“ITA”). The only development of significance is the Federal Government’s announcement that it will not be implementing a commitment made in last year’s federal budget to provide an exemption from capital gains tax related to certain dispositions of real estate and private corporate shares. Instead of incentives, Budget 2016 focuses on providing funding commitments to certain parts of the charity and not-for-profit sector, including international development, healthcare, arts and culture, and postsecondary education, as well as introducing some technical amendments to and cancellations of donation tax credits with respect to charities, non-profit organizations trusts, and HST/GST rules concerning certain charitable donations.
For the balance of the Bulletin, please see Charity & NFP Law Bulletin No. 381.