Update on Proposed Salary Cap Legislation

A. PRIVATE MEMBERS' BILL

You may have heard about the Private Members' Bill C-470, An Act to Amend the Income Tax Act. This Bill had two main components: a salary cap of $250,000 for any employee of a charity (with the possible consequence of revocation of charitable status if the cap was exceeded), and mandatory disclosure of compensation for a charity's five highest-paid employees. The Bill received a great deal of press and commentary within the charity sector, with many organizations making submissions to the government. (The Bill did not contain any exceptions for any specific entities and, therefore, caught organizations like hospitals and universities and independent schools.)