Change For Good? – Ottawa Rethinks Canada’s Charity Rules

Overview

The Department of Finance and the Canada Revenue Agency (the “CRA”) launched a public consultation on modernizing the federal tax framework for registered charities. The review is broad. It considers how charities become registered, interact with the CRA, file annual information returns, undergo audits and compliance action, and deal with objections and revocation.

The consultation may result in changes to both the Income Tax Act rules governing registered charities and the CRA’s administration of those rules. In particular, the government is asking whether the current framework can reduce unnecessary administrative burdens and make better use of digital services while protecting the integrity of charitable tax incentives and maintaining public confidence in the sector.