by admin | May 26, 2016 | Charity & Not-for-Profit Law
On May 11, 2016, the Ontario Superior Court of Justice (the “Court”) released its decision in R v Mamoon, in which it found that Nuzhat Mamoon (the “Accused”) was guilty of committing fraud after hearing testimony from eight individuals, some of whom had approached the Accused believing that she was a wealthy, religious businessperson who ran a charitable organization. She received money from these individuals with respect to non-existent business operations and never reimbursed the investments she guaranteed.
In May 2012, the Accused claims to have started a not-for-profit organization called “Umme Rabab”. The Court, however, found that she used the organization to meet and interact with financially vulnerable individuals, holding herself out as a successful businessperson. Although the Accused plead not guilty and testified that she did not profit from the organization, eight Crown witnesses testified that she obtained amounts varying from $1,000 to $38,000 from them, promising profits of at least 100% within 30 days. Justice Edwards found the Crown witness testimony credible but did not find the Accused’s evidence to be either believable or consistent.
As a result of the evidence against the Accused, the Court found that all of the elements of the offence of fraud, pursuant to s. 380(1)(a) of the Criminal Code of Canada (the “Code”), had been met beyond a reasonable doubt. Specifically, the Accused (1) deprived the public of something of value; (2) that the Accused’s deceit, falsehood or other fraudulent means caused the deprivation; (3) the Accused intended to defraud the public; and (4) the value of the property exceeded $5,000.
In this case, the Accused was found guilty of one count of fraud and may be sentenced to up to 14 years pursuant to the Code. The case stands as a stark reminder of the importance of charitable registration and establishing charities and not-for-profit organizations for bona fide purposes. Fraudulent abuse of such vehicles will result in harsh criminal sanctions.
by admin | May 26, 2016 | Charity & Not-for-Profit Law
On April 15, 2016, the federal Department of Finance released draft legislative proposals to amend the Income Tax Act (“ITA”) and Income Tax Regulations (“Regulations”). The draft proposals are designed to “implement the [Organisation for Economic Co-operation and Development’s (“OECD”)] Common Reporting Standard (CRS), which will ensure tax fairness and improve Canada’s ability to detect and address tax evasion.”
The draft proposals were accompanied by explanatory notes, which clarify that the changes to the ITA and Regulations to implement the CRS, namely the addition of Part XIX to the ITA, will introduce “rules that require financial institutions to report certain information to the Canada Revenue Agency and to follow due diligence procedures as set out in” Part XIX and will come into force July 1, 2017. The public has until July 15, 2016 to provide the Department of Finance with feedback on the proposed amendments to the ITA and Regulations.
Stay tuned for our analysis of the draft legislation and its potential impact on registered charities and non-profit organizations in the June 2016 Charity & NFP Law Update.
by admin | May 26, 2016 | Charity & Not-for-Profit Law
On March 8, 2016, Chapter 11A “Extra-Provincial Registration”, was released for the Corporate and Practice Manual for Charitable and Not-for-Profit Corporations, published by Carswell. When not-for-profit corporations carry on activities in a province or territory different from the jurisdiction in which they were incorporated, there are often registration requirements in the jurisdictions in which they operate. These are generally referred to as “extra-provincial registrations.” There are three common types of extra-provincial registrations – corporate registrations, business name registrations, and charitable fund-raising registrations. Given the diverse nature of the registration requirements in each province and territory, not-for-profit corporations carrying on activities across Canada need to carefully review the applicable requirements in each province and territory to ensure that they are compliant. The new chapter provides an overview of the diverse approaches to registering a not-for-profit seeking to operate extra-provincially, as well as a description of the various registration requirements unique to each province or territory.
To read more, the Corporate and Practice Manual for Charitable and Not-for-Profit Corporations by the late Jane Burke-Robertson, Terrance S. Carter, and Theresa L.M. Man may be ordered at: http://carswell.com/product-detail/corporate-and-practice-manual-for-charities-and-not-for-profit-corporations.
by admin | May 26, 2016 | Charity & Not-for-Profit Law
On May 19, 2016, Nova Scotia Agriculture Minister Keith Colwell issued a press release outlining a new tax credit that will be available to farmers who donate food to food banks. The measure was first discussed in the Nova Scotia Budget 2016-2017 and is to be implemented as part of the Financial Measures (2016) Act (the “Act”), which passed first reading in the Nova Scotia legislature on May 3, 2016.
The Food bank tax credit for farmers (the “Credit”) will be available to “eligible persons” who make donations of fresh surplus produce to registered food banks and will amount to a tax credit of 25 percent of the fair market value of the donation. The Act defines “eligible person” as an individual or corporation that carries on the business of farming in Nova Scotia, whereas an “eligible food bank” is a person or entity that distributes food for the relief of poverty that is a federally registered charity and satisfies conditions prescribed by the regulations. The Credit will be retroactive to January 1, 2016 and, as the Minister points out, further details will be clarified with future regulations.
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.
by admin | May 26, 2016 | Charity & Not-for-Profit Law
On May 4, 2016, the Government of Quebec published draft regulations proposing various amendments to the Charter of the French Language which would “ensure the presence of French when a trade mark in a language other than French is displayed outside.” Charities and not-for-profits operating in Quebec should take notice of these proposed amendments, as they will impose new obligations on organizations that do not currently display French language signage.
When a trade mark is displayed “outside an immovable” in a language other than French, a “sufficient presence of French” must accompany the trade-mark. This requirement may be accomplished by including “(1) a generic term or a description of the products or services concerned; (2) a slogan; (3) any other term or indication, favouring the display of information pertaining to the products or services to the benefit of consumers or persons frequenting the site.” As currently drafted, the definition of “outside an immovable” would apply to several situations, including signs displayed inside a shopping mall, and signs that are located inside a storefront, but intended to be seen from the outside.
Further, with regard to the “sufficient presence of French” requirement, signs or posters must also give the French portion permanent visibility, similar to that of the non-French trade-mark displayed and ensure its legibility in the same visual field as that mainly covered by the trade-mark signs or posters. For example, if the non-French trade-mark is illuminated at night, the French addition must also be illuminated at the same time.
The draft regulations will be under public consultation for a period of 45 days, i.e, until June 18, 2016. If the amendments come into force, they will apply to new signage, as well as pre-existing signage. However, in certain circumstances, including where a trade-mark is used outside of Quebec as part of a franchise system, organizations will have three years to comply with the legislation. Therefore, charities and not-for-profits operating in Quebec that publicly display trade-marks will need to carefully monitor the new requirements.
