Jun 2019 Charity & NFP Law Update
Electronic Filing System for Charities (CHAMP) Now Active
The Canada Revenue Agency (“CRA”) has been offering new digital services since June 1, 2019 to charities in order to lighten the administrative burden that many charities face with respect to their filings. These services are the product of the Charities IT Modernization Project (also known as “CHAMP”), made possible in 2014 as a result of the 2014 Federal Budget discussed in Charity Law Bulletin No 330, which allocated $23 million to the Charities Directorate for the purpose of modernizing its IT system over the next five years. The rollout of CHAMP is now complete and online services are available through ‘My Business Account’ (“MyBA”) to assist with handling a charity’s tax matters.
MyBA allows organizations to apply for charitable status by submitting the T2050 form and allows charities to complete and file their annual T3010 Registered Charity Information Return, as well as update their information, such as addresses, list of directors, representatives, and certain post-registration amendments. Further, MyBA allows charities to upload supporting documents, correspond with the Charities Directorate on certain matters, access payroll and GST accounts, file T4 slips and GST returns, and view their account balance, transactions, and remitting requirements.
Directors and trustees of registered charities who wish to use the online platform will need to use their CRA user ID and their business number to get access to these services. Multiple users may access the same account simultaneously, although only one user will be able to perform specific tasks on the platform at a time. The CRA webpage, ‘Registration process to access the CRA login services’ provides more information with respect to how to obtain access.
Authorized representatives, including accountants, employees and lawyers, may also file materials on behalf of charities. In order to register as a representative, the representative must first register him or herself as such using the ‘Represent a Client’ service, after which the representative will receive a “RepID.” Alternatively, a business representing a charity, such as an accounting or law firm, can also be registered as a representative through a group account (“GroupID”), through which that business can manage the access and roles of its employees. Any representatives associated with that GroupID will have online access to the client information, provided that authorization has been given by the charity. Charities then need to authorize the representative (using the representative’s RepID, GroupID, or business number), either online through MyBA or by mailing the RC 59 Business Consent for Offline Access form. Obtaining the charity’s authorization will require the representative to submit an online request, enter the authorization request information, print the certification for the director or trustee’s signature, and submit the document online. More information can be found on the CRA webpage, ‘Represent a Client Overview.’