Excise and GST/HST News – No. 98
On March 3, 2016, Canada Revenue Agency (“CRA”) published Excise and GST/HST News – No. 98, its quarterly online newsletter (“Newsletter”), which “highlights recent developments in the administration of the goods and services tax (GST) and harmonized sales tax (HST)”. The Newsletter includes information about recent developments related to a proposed HST rate increase in New Brunswick, the public service bodies’ rebate, supplies of admissions to places of amusement by public service bodies, and Form GST523, Non-profit Organizations – Government Funding.
Updates to Publications
In the past month, CRA has updated a few of its publications with charity related content. For example, P113, Gifts and Income Tax 2015 has been revised to reflect the fact that now any “foreign charity (including a foreign charitable foundation) that applies for registration, may also be registered as a qualified donee provided that it meets all conditions for registration.” Guide 5000-G, General Income Tax and Benefit Guide 2015 – All Provinces Except Non-Residents now includes a reference to CRA’s web-based mobile app that individual taxpayers can access throughout the year to “confirm before you donate that the charity at your door is registered, and calculate the effect your donation will have on your taxes.” As well, publications RC191, Becoming a Prescribed University Outside Canada and T4063, Registering a Charity for Income Tax Purposes were also recently updated.
Humane Society of Canada Revoked
On March 19, 2016, the Humane Society of Canada for the Protection of Animals and the Environment, Toronto, Ont.’s (the “Society”) charitable registration was revoked. The following reasons for revocation were published on CRA’s website:
It is the Canada Revenue Agency’s (CRA) position that the Humane Society of Canada for the Protection of Animals and the Environment (the Organization) has not devoted all of its resources to charitable activities for which it was registered. The Organization has conferred an undue benefit on a member of its governing board, improperly completed its information return, and failed to maintain adequate books and records to support its activities. For all of these reasons, and for each of these reasons alone, it is the position of CRA that the Organization’s registration should be revoked.
The revocation followed the Supreme Court of Canada’s March 10, 2016, dismissal of the Society’s request for leave to appeal of the Federal Court of Appeal’s decision confirming the Minister of Revenue’s notice of intention to revoke. For more information about the Federal Court of Appeal case, see Charity & NFP Law Update for July/August 2015.