Government Response to the Report of the Consultation Panel on the Political Activities of Charities


On March 7, 2019, the Minister of National Revenue responded to the Report of the Consultation Panel on the Political Activities of Charities and the following recommendations:

Recommendation 1: Revise the Canada Revenue Agency’s (CRA) administrative position and policy

The CRA has developed and published a draft guidance for public consultation to explain how it will administer the new rules on public policy dialogue and development activities of charities (see Recommendation 3 below). The CRA is accepting feedback on the draft guidance until April 23, 2019.

Recommendation 2: Implement changes to the CRA’s administration of the Income Tax Act (ITA)

The Government is providing up to $5.3 million in new funding over the 2018–2019 to 2023–2024 period for the CRA to enhance sector outreach and education. This will include reinstating in-person information sessions and introducing videoconference information sessions for charities across Canada.  The CRA will also strengthen its internal training for employees to ensure policies are implemented consistently, and will update relevant forms to reflect the new public policy dialogue and development rules.

The CRA has launched the Charities Education Program, conducting in-person visits with registered charities to provide them with support and guidance in meeting their obligations and maintaining their registered status.

The CRA will continue to make other administrative changes and to develop initiatives that align with the Panel Report, including:

Recommendation 3: Amend the Income Tax Act by deleting any reference to non-partisan political activities to explicitly allow charities to fully engage without limitation in public policy dialogue and development activities

Changes to the rules governing charities’ political activities were included in Bill C-86, Budget Implementation Act, 2018, No. 2, which received Royal Assent on December 13, 2018. These changes explicitly allow charities to fully engage without limitation in public policy dialogue and development activities, provided they are carried on in furtherance of a stated charitable purpose and do not support or oppose, either directly or indirectly, a political party or candidate for public office.

Now that the Government has responded to the Panel Report, the suspension of the remaining audits and objections that were part of the Political Activities Audit Program, initiated in 2012, is lifted. The CRA will contact the affected charities to discuss their outstanding audits and objections.

The Government has also decided to discontinue its appeal of the decision in Canada Without Poverty v. AG Canada because the legislative provisions at issue in the litigation are no longer applicable following the above mentioned changes.

Recommendation 4: Modernize the legislative framework governing the charitable sector

The Government is establishing a permanent Advisory Committee on the Charitable Sector (ACCS). The ACCS will provide recommendations to the Minister of National Revenue and the Commissioner of the CRA on important and emerging issues facing charities and qualified donees on an ongoing basis.

Hilary Pearson and Bruce MacDonald have accepted to be the ACCS’ first sector co-chairs. They will join the CRA co-chair, Geoff Trueman, Assistant Commissioner of the Legislative Policy and Regulatory Affairs Branch and 12 other members from the charitable sector and the Government.

The Government is providing $3.2 million in new funding over the 2018–2019 to 2023–2024 period to the CRA to support the ACCS to strengthen the relationship between the government and this important sector.

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