CRA Updates Guidance on GST/HST Information for Charities
On October 4, 2016 Canada Revenue Agency (“CRA”) updated RC4082 GST/HST Information for Charities. The guide contains new information based on amendments to the Excise Tax Act and Regulations, some of which amendments are proposed and not law. Information updated includes harmonized sales tax (“HST”) rate changes for New Brunswick, Newfoundland and Labrador, and Prince Edward Island, a change in the public service bodies rebate for municipalities resident in Newfoundland and Labrador, changes to include purely cosmetic supplies in taxable supplies, and increased online services for businesses and representatives. Most significantly, CRA says that “the GST/HST treatment of charitable donations has changed where a charity makes a taxable supply of property or a service in exchange for a donation and when an income tax receipt may be issued for a portion of the donation.” Charities should ensure that they reference the new version for any changes that apply to them.
CRA also updated RC4058 Quick Method of Accounting for GST/HST the same day to reflect the HST rate changes and the increased online services noted above.
Reminder of the Political Activities Consultations
As reported in the September Charity Law Update, on September 27, 2016, Canada Revenue Agency (“CRA”) together with the Minister of National Revenue announced public consultations to “clarify the rules regarding the involvement of registered charities in political activities.”
In this regard, CRA is currently receiving comments online until November 25, 2016 in relation to the development of new guidance or educational resources for charities on the rules governing political activities. While the consultation is open to everyone, it provides an important opportunity for registered charities the comment on CRA’s existing policy guidance and address issues faced by registered charities in carrying out political activities.