By Esther S.J. Oh and Lynne M. Westerhof

CRA Updates T3010, Introduces New Form T1441 to Report Qualifying Disbursements

The CRA has updated the T3010, Registered Charity Information Return, (“T3010”) to now require that registered charities report the grants that they make to non-qualified donees (grantees) under the new qualifying disbursement regime. Registered charities must now use this updated T3010 when filing their returns, although those charities that have already filed a return for their fiscal period end will not be required to refile with the updated form. The T3010 now features an updated section C which asks, among other things, whether the charity made “qualifying disbursements by way of grants to non-qualified donees (grantees) in the fiscal period?” (see line 5840).

The CRA also published a new form, Form T1441, entitled “Qualifying Disbursements: Grants to Non-Qualified Donees (Grantees)”, to allow charities to report detailed grant information, in accordance with applicable requirements under the Income Tax Act, and requirements set out in the updated Schedule C to the T3010. In general terms, when a charity makes grants totaling more than $5,000 to a grantee in a fiscal period, the updated Schedule C to the T3010 asks charities to report the name of the grantee, the purpose of the grant, the amount of cash and non-cash disbursements, and where the activities were carried on (if outside Canada) using the T1441 form.

The CRA has advised that in the near future, it expects to update the Guide T4033, “Completing Form T3010 Registered Charity Information Return” which provides instructions on how to complete the T3010 and the T1441.

CRA Updates Form P148 Regarding Taxpayer Objections and Appeal Rights

The CRA has made changes to Form P148 “Resolving your dispute: Objection and appeal rights under the Income Tax Act” as of May 8, 2023. Form P148 outlines what a taxpayer can do if they object to their income tax assessment or determination and would like to proceed with a formal dispute of the assessment or determination. Notably, the updated form features:

• an amended mandate for the Appeals Branch (which includes an updated focus on delivering “high quality, timely, and impartial recourse services for disputes”);
• a new reference which includes registered charities in the context of statements indicating that taxpayers have the right to object to “determinations or redeterminations such as the goods and services tax/harmonized sales tax (GST/HST) credit, the Canada Child Benefit (CCB), the disability tax credit (DTC), registered charities, and loss determinations”;
• a new list of situations in which an objection cannot be filed, such as for CPP/EI refunds and refund interest;
• a new list of objections which may be invalid, such as for late or early filed objections;
• a clarification that while objections can be submitted by various means, an objection submitted through one of the CRA’s secure portals “will ensure it is received and assigned to an appeals officer sooner”; and
• a commitment from the CRA that if a taxpayer’s objection is not considered valid, “the CRA will send [the taxpayer] an explanation of why [their] objection cannot be accepted”.

The CRA is encouraging all charities to file their information returns online through the My Business Account, since this digital service always uses the latest forms and guides to assist charities in completing their returns.

​Read the May 2023 Charity & NFP Law Update