Draft Budget Implementation Legislation Will Increase DQ and Affect Trust Reporting
August 2022 Charity & NFP Law Update
Published on August 24, 2022

By Terrance S. Carter, Theresa L.M. Man & Jacqueline M. Demczur

The disbursement quota is expected to soon be increased, as first announced in Budget 2022. Two pieces of draft legislation – one to make technical amendments to the Income Tax Act (“ITA”) and Income Tax Regulations (“Regulations”), and one to implement parts of Budget 2022, among other proposals, by amending the ITA and Regulations – has been released. In particular, the draft legislation proposes changes to the disbursement quota (“DQ”), trust reporting, technical updates regarding filing returns, as well as listing of prescribed donees. The draft legislation was released by the Department of Finance on August 9, 2022, together with explanatory notes. It is expected that the proposed changes will appear in budget implementation legislation to be introduced in the House of Commons when Parliament resumes in September 2022.

For full details on the draft legislation and its impact on charities, please see Charity & NFP Law Bulletin No. 515


​​Read the August 2022 Charity & NFP Law Update