Draft Tax Legislative Proposals Released
On July 27, 2018, the Department of Finance Canada released draft legislative proposals for public consultation relating to several areas of tax. In particular, the Department released Legislative Proposals Relating to Income Tax and Other Legislation (“Draft Proposal”), along with accompanying explanatory notes. The Draft Proposal contains the amendments to the ITA that were announced in Budget 2018 and outlined in Charity & NFP Law Bulletin No. 417. Of interest to charities and not-for-profits, the Draft Proposal includes proposed changes to the reporting obligations under section 150 of the ITA, which outlines requirements for tax returns and filing dates for taxpayers, including trusts. Newly proposed subsection 150(1.2) would require express trusts that are resident in Canada to file a tax return, even where they are excepted from doing so under subsection 150(1.1), but would provide an exception for trusts that are registered charities or non-profit organizations from these requirements. These proposals are open for public comments until September 10, 2018. Those interested may send their comments to [email protected].
Amendments Passed for Immigration and Refugee Protection Regulations, SOR/2002-227
Amendments to the Immigration and Refugee Protection Regulations (“Regulations”) were published in the Canada Gazette on June 22, 2018. Of interest to charities is the expansion of parties who are exempt from paying fees for the collection of biometric information under subsection 315.1(2) of the Regulations for temporary resident visas, study permits, or work permits. Under these amendments, a person seeking to work in Canada for a religious or charitable organization will no longer be required to pay the biometric fees under section 10.01 of the Immigration and Refugee Protection Act (“IRPA”), as long as he or she will be working without remuneration. Section 10.01 of IRPA was introduced through the Economic Action Plan 2015 Act, No. 1 and is not currently in force, but will come into force on a day to be fixed by order of the Governor in Council. Likewise, the amendments to the Regulation will come into force on the same day that section 10.01 of IRPA comes into force, or if registered at a later date, on the date of registration.