by admin | Aug 25, 2016 | Charity & Not-for-Profit Law
On July 8, 2016, the Tax Court of Canada issued its decision in the informal procedure case of Duguay c La Reine (“Duguay”). The taxpayer appealed the Minister’s disallowance of a claim for a charitable tax credit in relation to a receipt issued in the amount of $10,000 by a registered charity. The Minister disallowed the claim because the taxpayer received an advantage in excess of the value of his gift. The Court upheld the Minister’s decision.
In particular, the taxpayer rented an apartment belonging to the charity, which he spent over $20,000 renovating. The charity reimbursed him $20,000. The taxpayer immediately donated $10,000 to the charity, pursuant to a verbal agreement with the charity. The agreement was to cover the cost of the renovations he would leave behind. However, because the taxpayer had the right to enjoy the renovations to his apartment at the time of the donation, the Court found that the donation was not given independently of the benefit of living in a newly renovated apartment and was caught by the Income Tax Act’s (“ITA”) rules relating to advantage. Subsection 248(31) of the ITA states that the amount of the gift is “the amount by which the fair market value of the property that is the subject of the gift or monetary contribution exceeds the amount of the advantage, if any, in respect of the gift or monetary contribution.” Because the taxpayer had the advantage of living in the renovated space which surpassed the eligible value of the gift, there is no tax credit. Although the decision has no precedential value, it is interesting to note the Court found that the future benefit to the charity was not pertinent to the determination of the taxpayer’s advantage.
by Dev User | Aug 25, 2016 | Charity & Not-for-Profit Law, Employment Law, Expertise
Charity & NFP Law Bulletin No. 389
On March 8, 2016, Sexual Violence and Harassment Action Plan Act (Supporting Survivors and Challenging Violence and Harassment), 2016 (“the Act”), formerly Bill 132, received Royal Assent. The Act amends various Ontario statutes, including the Compensation for Victims of Crime Act, Limitations Act, 2002, Ministry of Training, Colleges and Universities Act, Private Career Colleges Act, 2005 and the Residential Tenancies Act, 2006, as part of the Ontario government’s plans to address sexual harassment. For employers, the most significant changes are contained in Schedule 4 of the Act, as there are important amendments to the Occupational Health and Safety Act (“OHSA”) to specifically define and address sexual harassment in the workplace.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 389.
by admin | Aug 25, 2016 | Charity & Not-for-Profit Law, Faith-Based Organizations
For the last three years, the accreditation of the proposed law school at Trinity Western University (“TWU”) has been the focus of proceedings involving the Nova Scotia Barristers’ Society (“NSBS”), the Law Society of Upper Canada (“LSUC”) the Law Society of British Columbia (LSBC), before both the superior and appellate courts of those provinces.
TWU is a private evangelical Christian university. Students at TWU must sign a Community Covenant, based on their faith, which requires them to adhere to certain behavior, including abstaining from “sexual intimacy outside of marriage between a man and a woman.” On December 16, 2013, the Federation of Law Societies of Canada accredited the TWU Law School. On December 17, 2013, the B.C. Government approved the granting of degrees to graduates of the proposed TWU law school. In December 2014 the B.C. Government revoked its approval of the law school following the decisions of the NSBS, LSUC and LSBC not to accredit the TWU proposed law school on the basis that the Community Covenant was discriminatory.
The decisions of all three Law Societies were appealed and the decisions of the superior courts of the three provinces were given in 2015. The Nova Scotia Supreme Court released its decision first on January 28, 2015 overturning the NSBS decision. The Ontario Superior Court of Justice (Divisional Court) followed on July 2, 2015 with a decision that upheld the LSUC decision to deny accreditation and the British Columbia Supreme Court rounded out the year on December 12, 2015 quashing the decision of the LSBC to reject TWU’s proposed school as an approved faculty of law. All of these decisions were appealed.
The appeal courts of Ontario and Nova Scotia recently released their decisions, with the Ontario Court of Appeal upholding the LSUC decision not to approve the TWU proposed Law School on June 29, 2016 in Trinity Western University v The Law Society of Upper Canada and the Nova Scotia Court of Appeal affirming the lower court’s decision that the NSBS did not have the jurisdiction to refuse accreditation on July 26, 2016 in The Nova Scotia Barristers’ Society v Trinity Western University. The British Columbia Court of Appeal heard arguments on June 3, 2016 but has not yet released its decision.
With conflicting decisions in two courts of appeal and another court decision expected soon, this matter is likely headed to the Supreme Court of Canada (“SCC”). Important issues will no doubt be addressed, including freedom of religion of individuals as well as institutions, balancing of equality rights, administrative law issues and whether the Charter even applies to a private university. As well, attention will be paid to how the SCC will deal with its previous decision in 2001 Trinity Western University v British Columbia College of Teachers, which approved TWU’s Faculty of Education, notwithstanding the Community Covenant.
by Dev User | Aug 25, 2016 | Charity & Not-for-Profit Law, Counter Terrorism Law, Expertise
Ontario Court Rules on The Justice for Victims of Terrorism Act
On June 9, 2016, the Ontario Superior Court of Justice released its decision in Tracy v The Iranian Ministry of Information and Security (“Tracy”), in which it dismissed motions brought by the Iranian Ministry of Information and Security (“MOIS”) to stay previously issued orders from the court to seize Ontario-based assets. The property to be seized belonged to the Islamic Republic of Iran, MOIS, and the Islamic Revolutionary Guard Corps (“IRGC”), collectively identified by the court and here as “Iran” or “Iranian State Actors”. The orders enforce a U.S. foreign judgment that ordered the seizure of $7 million worth of property belonging to Iran as damages to be paid to victims of terrorist attacks supported by Iran. The enforcement of orders against these types of assets and actors, which to date has failed in the U.S., is made possible by new Canadian legislation, namely the Justice for Victims of Terrorism Act (“JVTA”), that lifts the protection of diplomatic immunity for certain state actors involved in terrorism-related offences under the Criminal Code. For the balance of this Alert, please see Anti-terrorism and Charity Law Alert No. 45.
New Regulations Expand Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime
On June 17, 2016 the Governor General in Council issued an order creating the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2016 (“the PCTFA Regulations”), which was later amended by the Regulations Amending the Regulation Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2016. The second set of regulations, among other things, corrected an issue with the dates for the PCTFA Regulations to come into force. Different amendments are set to come into force on different dates, ranging from June 30, 2016 to July 17, 2017.
The Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) is Canada’s financial intelligence unit which collects and disseminates information it receives from mandatory reporting entities and not only analyzes it, but shares it with domestic and law enforcement and intelligence agencies. FINTRAC has amended its guidelines to mirror and reflect the new PCTFA Regulations through bolstering identification requirements and other amendments.
In addition to the new FINTRAC guidelines and PCTFA Regulations, amendments have been made to the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations (“AMP Regulations”). The AMP Regulations are purportedly designed to improve compliance, monitoring, and enforcement efforts, for example expanding the authority of FINTRAC to impose administrative monetary penalties in addition to increasing the amount of information being shared. Both the AMP Regulations, FINTRAC guidelines and PCTFA Regulations have applicability to charities and not-for-profits, among others, for many reasons, including the increasing administrative penalties for non-compliance and strengthened regulations regarding the conduct of casino fundraisers by registered charities (as under the AMP Regulations).
In light of the burgeoning and robust regulatory regime and legislative initiatives to address terrorist financing and money laundering, charities and not-for-profits need to understand the extent of information which is being recorded, collected and shared regarding financial transactions and the implications that could have when that information is shared with law enforcement and regulatory agencies like Canada Revenue Agency.
by admin | Jun 30, 2016 | Charity & Not-for-Profit Law
Several partners of Carters Professional Corporation were recognized as leaders in the areas of Charity
and Not-for-Profit Law, in Canada by The Canadian Legal Lexpert® Directory 2016. Terrance S. Carter,
Managing Partner of the firm, has been recognized as one of the most frequently recommended
practitioners in the area of charities and not-for-profits in Canada since 2004. Theresa L.M. Man has been
recognized as consistently recommended practitioners in charity & not-for-profit law since 2011, and
Jacqueline M. Demczur and Esther S.J. Oh have been recognized as repeatedly recommended
practitioners, also since 2011.
by Dev User | Jun 30, 2016 | Charity & Not-for-Profit Law, Faith-Based Organizations
The Supreme Court Broadens the Scope of Solicitor-Client Privilege Under the Income Tax Act
CRA News
Legislation Update
Corporate Update
Tax Court Cases of Interest to Charities
Clarity Still Needed on Impact of OECD Common Reporting Standards on the Sector
Director General of the Charities Directorate Promoted
CRTC Signs MOU with International Agencies to Fight Spam
SCC Denies Leave to Appeal in Discriminatory Will Case
Court Limits Temporary Lay-off Rights
Ontario Court Rules that CRA Does Not Owe Duty of Care for Disallowed Tax Shelters
Affiliation Agreement Upheld by BC Court of Appeal
Proposal for Changes to Trademark Fees May Prompt Pre-emptive Registrations
Rowan’s Law Receives Royal Assent
Anti-Terrorism & Money-Laundering Update
Lexpert Rankings 2016
June 2016 Charity & NFP Law Update
