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Ontario Superior Court Decision Highlights Importance of Properly Drafting By-laws
Esther S.J. Oh and Urshita Grover | December 11, 2024
The authors examine <em>Mississauga Majors v. Provincial Women’s Softball Association</em>, in which the Applicant, the Mississauga Majors Baseball Association, a not-for-profit corporation that offers baseball and softball leagues exclusively for youth and young adult females (the “Majors”), sought a declaration from the court directing the Respondent, the Provincial Women’s Softball Association, which is the governing body for women’s softball in Ontario, to comply with its by-laws.
Learn moreONCA Gives Courts Right to Review Election or Appointment of Director
Jennifer Leddy, partner, Carters | April 17, 2024
The case of Metmeke v Yigzaw is an interesting case about the authority given to a court under the ONCA to review the election or appointment of a director. In this case, a contested election for a church’s board of directors spiraled out of control, leading to a motion to overturn the results of that election.
Learn moreAmendments to the Ontario Not-for-Profit Corporations Act, 2010 effective Oct. 1, 2023
Katherine Carre and Victoria Prince | January 25, 2024
On April 3, 2023, the Ontario government introduced Bill 91 or the Less Red Tape, Stronger Economy Act, 2023 (Bill 91). Bill 91 amends various pieces of legislation including the Ontario Not-for-Profit Corporations Act, 2010. The amendments to Ontario Not-for-Profit Corporations Act, 2010 are effective Oct. 1, 2023.
Learn moreDraft Budget Implementation Legislation: Part I, Disbursement Quota
Terrance S. Carter, Theresa L.M. Man and Jacqueline M. Demczur | August 31, 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 – have been released. This article, which is Part I of a Three-Part series, will discuss the disbursement quota.
Learn moreDraft Budget Implementation Legislation: Part II, Updated Reporting Requirements for Trusts
Terrance S. Carter, Theresa L.M. Man and Jacqueline M. Demczur | August 31, 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 – have been released. This article, which is Part II of a Three-Part series, will updated reporting requirements for trusts.
Learn moreDraft Budget Implementation Legislation: Part III, Other Updates
Terrance S. Carter, Theresa L.M. Man and Jacqueline M. Demczur | August 31, 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 – have been released. This article, which is Part III of a Three-Part series, will discuss other updates contained in the draft legislation.
Learn moreCrowdfunded Donations to Result in Information being Reported to Federal Government
Terrance S. Carter, Nancy E. Claridge, Sean S. Carter | June 04, 2022
New regulations subject crowdfunding services to significant obligations, including keeping records of certain clients, fund raising purposes and some beneficiaries and verifying the identity donors giving more than $1000. Charities should take note that personal identifying information regarding crowdfunded donations will be provided to FINTRAC just like donations through the traditional banking system and may be shared with other agencies within the federal government.
Learn moreCorporation Fined, Director Imprisoned for Contempt in Copyright Infringement Decision
In a rare decision, the Federal Court of Canada found a party in contempt of court for breaching the terms of two previous judgments concerning copyright infringement, resulting in a severe fine and imprisonment of a director of the infringing. It serves as a reminder that courts take intellectual property protection seriously and will impose liability on both infringing corporations and on their directors when necessary and appropriate.
Learn moreCourt Finds County's Property Purchase to be a Breach of Trust
Jacqueline M. Demczur | April 04, 2022
A decision from the Ontario Superior Court of Justice emphasized that a tax-exempt organization that receives a gift from an individual’s estate cannot spend the funds as it wishes. Rather, funds must be used according to the terms of use set out in the will. The court, in its January 31, 2022 unreported decision of County of Bruce v Office of the Public Guardian and Trustee, ultimately concluded that the funds from the estate were misused and that there had been a breach of trust.
Learn moreInclusive Community Grants Application Now Open
Deina Warren | February 06, 2022
Do you work with or are you part of a community organization, an Indigenous Community or organization or a local government? Applications for Ontario’s 2022-2023 Inclusive Community Grants are now available. These grants provide up to $60,000 for a local project to help older residents and people with disabilities participate in community life. Priority projects are those that support under-served communities and that address COVID-19 related challenges. Applications are due March 3, 2022.
Learn moreMandate Letters Issued to Amend ITA Concerning the Charitable Status of Certain Organizations
Terrance S. Carter | January 31, 2022
Mandate letters issued by the Prime Minister include direction to introduce amendments to the ITA that would make certain organizations ineligible for charitable status. It remains to be seen what amendments may be introduced, but the proposal is concerning as it specifically targets an existing segment of the sector and it could have unintended long-term consequences for all charities. Any proposed amendments therefore need to be carefully monitored.
Learn moreNew Resources about Community Investing
Ryan M. Prendergast | January 24, 2022
Are you looking for information about community impact investing? Two resources are now available for charities and not-for-profits in Ontario from the Cooperation Council of Ontario, Ontario Trillium Foundation and Canadian CED Network. There is a report to help you understand the current state of community investment organizations in Ontario and a guide that outlines the phases of development for community investment cooperatives.
Learn moreNo Tax Rebate for Charity Housing Project's Market Rate Units
Nancy E. Claridge and Adriel N. Clayton | January 24, 2022
Charities that qualify as designated municipalities can be eligible for a rebate from the GST/HST paid on property and services, but does a supply of market rate units for moderate income households qualify? A recent CRA interpretation letter explains how section 259 of the Excise Tax Act and CRA’s info sheet Municipal Designation of Organizations Providing Rent Geared to Income Housing might apply in this situation, and why the charity’s market rate units would not qualify for the rebate.
Learn moreAnnual General Meetings in the COVID-19 Pandemic
David A. van der Woerd, Derek A. Sheppard, Humza M. Khan, Ross & McBride | December 11, 2021
The COVID-19 pandemic has created unique situations for corporations, including social distancing orders. These orders are challenging in the regular course of business and particularly tricky if an annual general meeting (AGM) timeline fell in the midst of these orders. This paper outlines the most recent federal and provincial legislation relevant to AGMs and provides general guidance to corporations for holding restriction-compliant AGMs.
Learn more$17 Million Gift to Private Foundation Ineligible for Tax Credit
Terrance S. Carter and Ryan M. Prendergast | November 08, 2021
The Tax Court of Canada decision in Odette (Estate) v the Queen serves as a warning that private foundations and their donors need to be sensitive to the complex rules that apply to them, and in particular to proceed very cautiously when considering making gifts of non-qualifying securities. In this case, the court dismissed an appeal from an assessment denying the taxpayer a charitable donation tax credit. Read the full article for the court’s analysis of s.118.1(13)(c) of the Income Tax Act.
Learn moreCRA Considers if NPO Can Add a Secondary Source of Income
Theresa L.M. Man | November 08, 2021
Can a non-profit organization add a secondary business and use the net income to fund its non-profit objectives? Can it fund the business from a reserve accumulated from excess member contributions held for future capital expenditures? Can it provide services to non-members outside its geographical area? This article will explain CRA’s view on these questions, with reference to the Income Tax Act and Interpretation Bulletin IT-496R.
Learn moreFederal Court Finds CRA Can Compel Taxpayers to Disclose Oral Agreements
Ryan M. Prendergast | November 08, 2021
The Federal Court case of Canada (National Revenue) v Miller examines the CRA’s extensive audit powers. It affirms that the CRA can compel the production of any information that should be documented in books and records, even if a transaction was originally an oral agreement. In an audit, charities and NFPs should be prepared to make reasonable efforts to accurately respond to requests for documents and information.
Learn moreOntario Court Rules on Decade-Long Property and Membership Dispute
Esther S.J. Oh | October 23, 2021
After a lengthy and complicated dispute between members of the Hamilton branch of the Royal Yugoslav Army Combatants’ Association in Canada-Draza Mihailovic (the “RYACA”), the Ontario Superior Court of Justice released its September 1, 2021 decision concerning membership and decision-making rights concerning property owned by RYACA in Varjacic et al. v Radoja et al.
Learn moreCorporations Information Act (Ontario): Corporate Annual Return Filing Changes
If you are a business, not-for-profit, or charitable corporation incorporated in Ontario, or a foreign business corporation required to report Ontario income taxes, then you are required to file a corporate annual return under the rules of the Corporations Information Act (Ontario).
Learn moreFederal Budget 2021: Impact On Charities and Not-For-Profits
Released 13 months into the pandemic, Budget 2021 is comprised of four parts focussing on various priorities: Finishing the Fight Against COVID-19; Creating Jobs and Growth; A Resilient and Inclusive Recovery; and Fair and Responsible Government. This article provides a summary and commentary on provisions proposed in Budget 2021 that impact the charitable and the not-for-profit sectors.
Learn moreGovernment Responds to Recommendations of Senate Report on Charities & NFP Sector
Terrance S. Carter and Esther S.J. Oh | May 03, 2021
The Federal Government published a detailed response letter on March 30, 2021 to the Senate’s special report on the charitable and non-profit sector. The 20-page letter from the Minister of National Revenue reviews and responds to all of the 42 Recommendations. This article provides an overview of the Government’s extensive response to the Report and highlights comments of particular interest.
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