Canada Revenue Agency Releases Guidance Documents Related to Income Tax Act Amendments

Canada Revenue Agency (CRA) has released administrative guidance to the charitable sector on how it would implement proposed legislative changes to the Income Tax Act. CCVO recently announced when the Department of Canada Finance released the proposed legislative changes that would remove the quantitative limits (often referred to as the “10% rule”) on political activities for charities.

Guidance documents key points:

1. A charity can carry out a wide range of public policy advocacy activities

2. Charities must always be non-partisan

3. There are examples to the limits on public policy advocacy activities

4. CRA has a specific compliance approach

View the full guidance document here.

The CRA is currently accepting feedback on the draft guidance document. As the legislation progresses further, suggested changes will continue to be accepted by the CRA until new legislation is tabled by the Department of Finance.

You can send your feedback to consultation-policy-politique@cra-arc.gc.ca.

CCVO intends to provide feedback during this process and will continue to provide updates on any legislative changes to the Act.