by Terrance S. Carter
As reported in earlier Charity Law Updates (http://www.carters.ca/pub/update/charity/10/oct10.pdf), Private Members' Bill C-470, An Act to Amend the Income Tax Act (revocation of registration), which proposed a salary cap of $250,000 for any executive or employee of a charity, and mandatory disclosure of compensation for its five highest-paid executives or employees, had been referred to the Standing Committee on Finance for review in November 2010. In this regard, the Committee commenced hearings on November 29, 2010, at which time amendments to the Bill were introduced by Albina Guarnieri, MP for Mississauga East - Cooksville, the sponsor of the Bill. The amendments to Bill C-470 proposed by Ms. Guarnieri included the elimination of the $250,000 compensation cap, and the introduction of a threshold of $100,000 for compensation disclosure requirements.
On December 6, 2010, a further hearing commenced before the Standing Committee on Finance, at which time members of the charitable sector voiced strong opposition to the Bill. Nonetheless, the Committee reported an amended version of Bill C-470 to the House of Commons on December 10, 2010. The amended Bill C-470 no longer includes a compensation cap provision, and a disclosure floor of $100,000 has been added, as was proposed by Ms. Guarnieri. The Committee also made further amendments to the Bill, which were not recommended by Ms. Guarnieri. The amended Bill C-470 expands the compensation disclosure requirement to all executives or employees of a charity who receive $100,000 in compensation or more, rather than only the five highest-paid employees receiving $100,000 or more. The $100,000 disclosure floor is to be indexed, in respect of 2012 and following taxation years as if it were referred to in ss.117.1(1). The Committee also made it mandatory for the Minister to make salary disclosures available to the public, but added an allowance for Ministerial discretion not to do so where "it is otherwise justified."
Bill C-470, as amended by the Standing Committee on Finance, can be viewed online at http://www2.parl.gc.ca/HousePublications/Publication.aspx?Docid=4873932&file=4.