by Dev User | May 26, 2016 | Charity & Not-for-Profit Law
Elena Hoffstein – Guest Contributor, Charity & NFP Law Bulletin No. 386, May 25, 2016
Editor’s Note: This Bulletin is an update of our Charity & NFP Law Bulletin No. 380 that was previously posted on February 25, 2016, and reflects changes introduced by the 2016 Federal Budget.
On December 16, 2014, Bill C-43 received Royal Assent. The new rules introduced by the Bill affect the manner in which testamentary trusts are taxed and, in addition, change significantly the manner in which testamentary charitable gifts will be dealt with under the Income Tax Act, RSC 1985, c.1 (5th Supp.) (“ITA”).
In order to better appreciate the significance of the changes and their impact on testamentary charitable giving, it is important to review briefly the law as it was prior to 2016.
In the past, income and capital gains retained in inter vivos trusts were taxed at a different rate than testamentary trusts. Inter vivos trusts have always been taxed at the top marginal rates of tax. On the other hand, testamentary trusts and certain pre-1971 inter vivos trusts have enjoyed access to progressive rates of tax and other benefits not available to inter vivos trusts. Bill C-43 has eliminated the various differences between inter vivos and testamentary trusts commencing in 2016. There are two exceptions to these new rules. Firstly, the progressive tax rates will continue to apply to the first thirty-six (36) months of an estate that arises as a consequence of the death of an individual and that is a testamentary trust. This type of trust has been given a new name, the graduated rate estate or GRE, as it is now affectionately named. The second exception is for trusts that qualify as qualified disability trusts or QDTs for disabled individuals. It is not intended to discuss QDTs in this Bulletin.
For the balance of the Bulletin, please see Charity and NFP Law Bulletin No. 386.
by Dev User | May 26, 2016 | Charity & Not-for-Profit Law, Employment Law, Expertise
Charity and NFP Law Bulletin No. 385, May 25, 2016
Two Bills were recently introduced in the Ontario Legislature, which, if passed, will grant new leave of absence provisions under the Employment Standards Act, 2000 (“ESA”). Bill 175, Jonathan’s Law (Employee Leave of Absence When Child Dies), 2016, (“Jonathan’s Law”) and Bill 177, Domestic and Sexual Violence Workplace Leave, Accommodation and Training Act, 2016 (“DSVL”) were introduced on March 8, 2016. While these Bills are in the early stages of the legislative process, charities and not-for-profits will want to follow their development given their potential impact should they become law. This Charity & NFP Bulletin explores each of these Bills in their current form and discusses the potential implications to charities and not-for-profits.
For the balance of the Bulletin, please see Charity and NFP Law Bulletin No. 385.
