On April 12, 2017, O.C. 321-2017, the Regulation to amend various regulations of a fiscal nature, was published in the Québec Gazette. O.C. 321-2017 is a document discussing various provincial and legislative tax issues in Québec, including, amongst others, the Regulation to amend the Regulation respecting the Taxation Act. Of particular importance to charities wishing to operate in Québec is the implementation of the elimination of the double registration process for registered charities, as proposed in the 2016 Québec Budget. For more information on the original proposal, see “Quebec Ends Duplicate Registration Process for Registered Charities” in the April 2016 Charity Law Update.
In this regard, the registration requirements under subparagraph (b) of section 985.5R1 of the Regulation respecting the Taxation Act have now been removed. Accordingly, section 985.5R1(b) now states that, subject to the Minister’s power to refuse or revoke a registration or change a designation, a charitable organization, private foundation or public foundation is deemed to be registered in Québec where “(b) it possesses a valid registration as such under the Income Tax Act.” This amendment thereby eliminates the need for a registered charity which possesses a valid registration under the ITA to provide the Minister with confirmation of registration under the ITA, together with true copies of the documents they submitted to support their application for registration and proof of registration within 30 days of confirmation of the said registration, in order to qualify as a registered charity operating within the province of Québec. As indicated in the 2016 Québec Budget, this amendment came into effect January 1, 2016.