Jan 2019 Charity & NFP Law Update
Royal Assent Received for Bill C-86, Budget Implementation Act 2018, No.2
On December 13, 2018, the omnibus Bill C-86, Budget Implementation Act 2018, No. 2 received Royal Assent, making highly anticipated changes to the political activities rules for charities under the ITA. As indicated above, Bill C-86 amends section 149.1 of the ITA by repealing the term “political activity” under subsection 149.1(1) and introducing the concept of “public policy dialogue and development activities,” as a permitted charitable activity. These amendments are now in force, and may apply retroactively as far back as 2008. The CRA’s interpretation of public policy dialogue and development activities is discussed in more detail above in Charity & NFP Law Bulletin No. 438.
Bill C-86 will also amend the Trade-marks Act, although these amendments do not have a set coming into force date yet. Of particular interest to charities, these amendments include limiting enforcements without use in Canada, as well as simplifying the process by which official marks can be invalidated and removed from the Register. For further details on the Bill C-86 amendments to the Trade-marks Act, see More Changes to Trademark Law That Will Impact Charities and NFPs, below.
Proposed Amendments to Immigration and Refugee Protection Regulations, SOR/2002-227
On December 15, 2018, regulations proposing amendments to the Immigration and Refugee Protection Regulations, SOR/2002-227 (“Immigration Regulations”) were published in the Canada Gazette. These amendments are intended to provide protection for migrant workers, which may include charitable and religious workers under Canada’s International Mobility Program (“IMP”) who are experiencing abuse or are at risk of abuse by their employers. More specifically, migrant workers who are issued employer-specific work permits (“ESWP”), which restrict their ability to work in the country to the employer named on their permit, may be deterred from reporting employer abuse because investigations into abuse could lead to a ban on the employer from employing migrant workers, thereby resulting in migrant workers with ESWP’s facing financial burden and risk of deportation.
When the regulations come into force, the Immigration Regulations will be amended to allow “migration officers” to issue open work permits to migrant workers with ESWP’s and their families who are in Canada if there are reasonable ground to believe that the migrant worker is experiencing employer-abuse or is at risk of abuse. Providing an open work permit will allow the migrant worker to work for any employer in the country and therefore avoid the risk of deportation. Further, the regulations will amend the IPRP to provide an exemption from the $155 work permit processing fee.
British Columbia Speculation and Vacancy Tax Act and Regulation 275/2018
On November 27, 2018, British Columbia’s Speculation and Vacancy Tax Act received Royal Assent. In general terms, the Act requires the owner of a residential property to pay a yearly tax to the government in accordance with a provided formula, except in accordance with exemptions outlined in the Act. The Act defines “residential property” generally to include properties assessed as class 1 residential properties. Section 20 of the Act, in particular, exempts registered charities, as well as associations as defined under the Cooperative Association Act. Not-for-profits may also be exempt from the tax, provided that: 1) they hold the residential property “other than as a partner in a partnership or as a trustee of a trust” and 2) the property is “primarily used for a prescribed purpose.” Such purpose is prescribed in BC Regulation 275/2018, which came into effect on December 10, 2018, and provides that the property owned by the not-for-profit must be used for a charitable purpose.