Sweeping Changes Recommended In Report On Political Activities

On May 4, 2017, the Canada Revenue Agency (“CRA”) published on its website the excellent and very
readable Report of the Consultation Panel on the Political Activities of Charities (the “Report”), prepared
after the CRA’s consultation with the charitable sector that was launched in September 2016 and
concluded in December 2016 (the “Consultation”). In conjunction with the release of the Report, the
Minister of National Revenue announced on the same day the Liberal government’s suspension of all
remaining CRA audits of charities for political activities originally initiated through the 2012 Federal
Budget. The suspension is to remain in place pending the implementation of the Report’s
recommendation.
The Report, states that the “legislative framework for regulating charities is out-dated and overly
restrictive” and calls for changes to the current administrative and legislative framework governing
“political activities” by charities. In doing so, the Report provides four recommendations, including the
immediate suspension of the political activity audits that was acted upon by the Minister of National
Revenue. The CRA has committed to providing a formal response to the Consultation Panel’s
recommendations by the end of June 2017.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 403.