Income Tax Act (Canada) — Part I.1 Registered Charities

Summary

The Income Tax Act's provisions on registered charities govern registration, ongoing compliance, political activities (now liberalised by 2019 Budget amendment), and the consequences of registration including the charitable remainder tax credit for donors. Registered charities must operate for exclusively charitable purposes. The 'terrorism financing' provisions restrict registration of charities linked to listed entities.

Relevance to the diaspora

Tamil-Canadian charitable organisations must navigate both CRA registration requirements and anti-terrorism provisions; several Tamil organisations were de-registered by CRA in the 2006–2010 period on terrorism financing grounds; post-2019 amendments allow greater political advocacy by registered charities.

Key provisions

• s.149.1 — definition of registered charity and charitable purposes
• s.168(1)(f) — revocation for terrorism financing connections
• s.188.2 — suspension of tax receipting during investigation
• Budget 2019 amendment — removal of 10% political activities restriction

Primary source

Related entries

• → Anti-terrorism Act 2001 (Canada) (CA)
• → Charities Act 2011 (UK)