Consenting To Proposed Budget Amendments

Among the few technical tax measures affecting the charitable and non-profit sector proposed in the federal budget tabled on April 19, 2021 (the "2021 Budget"), one of the proposed budget amendments expands the ability for the Minister of National Revenue (the "Minister") to revoke a charity or other qualified donee's registration where an individual has certain connections to a terrorist entity.

To do so, the 2021 Budget proposes to expand the definition of an "Ineligible Individual" under the Income Tax Act  (Canada) (the "Act"). In light of these proposed amendments, we encourage charities to take this opportunity to review their director consent processes and practices and consider any updates that may be appropriate.