Charity & NFP Law Update October 2024 – Charities & Non-Profits – Corporate/Commercial Law
Advisory Committee on the Charitable Sector Releases
Report #4
By Theresa L.M. Man, Jacqueline M. Demczur & Terrance S. Carter
The Advisory Committee on the Charitable Sector
(“ACCS”) released its Report #4, on October 9, 2024,
subtitled “Towards a federal regulatory environment that
enables and strengthens the charitable and non-profit sector”
(“ACCS Report #4”). This is the fourth of a series of
ongoing reports by the ACCS. In this ACCS Report #4, the ACCS makes
18 recommendations for action in several areas. This Bulletin
provides an overview of the ACCS Report #4.
As previously discussed in earlier Charity & NFP Law
Bulletins, the ACCS was established in 2019 to serve as a
consultative forum between the Government of Canada and the
charitable sector. Its purpose is to foster dialogue on emerging
issues affecting charities and to ensure the regulatory framework
supports the vital work charities undertake. Following the 2019
Senate Special Committee on the Charitable Sector’s report,
Catalyst for Change: A Roadmap to a Stronger Charitable
Sector (the “Senate Committee Report”), the ACCS was
tasked with considering its recommendations.
Report #4 provides insights into various issues affecting
Canada’s charitable sector. It sets out recommendations to
better improve the charitable sector, including modernizing the
regulatory framework for charities, improving transparency,
increasing collaboration with Indigenous organizations, and
simplifying the charitable registration process, among others. The
report highlights the importance of ongoing consultations with
stakeholders to ensure regulatory approaches align with the
sector’s needs, and stresses the importance of
government-charity partnerships to address societal challenges.
To read the remainder of the Bulletin, click here.
CRA News
CRA’s Guidance on Filing Information Returns
Electronically (Tax Slips and Summaries)
The Canada Revenue Agency’s (“CRA”) webpage on electronic filing, which was last
updated on October 18, 2024, outlines how tax information returns
can be filed electronically, such as T4, T4A, T5 and other types of
returns, through online methods. It details options like Web Forms
and Internet File Transfer (XML) for submitting original, amended,
or cancelled returns securely. Benefits include quick confirmation
of successful filing, flexibility to update filings, and the option
for authorized representatives to file on a
taxpayer’s/organization’s behalf. There is also guidance on
making post-filing corrections.
The webpage covers the following four sections, hyperlinked to
each page:
The CRA’s instructions on electronic filing covers key steps
for businesses, including steps to determine the filing due date,
determine if an organization must file electronically, and using
XML formatting specifications for valid submission. The page
outlines penalties that apply for incorrect submission methods and
provides resources for setting up compatible XML files, with
specific instructions on encoding and schema validation for
different tax forms. Compliance is crucial as of 2024, as more
returns require digital filing.
The 2025 XML specifications and schema for the electronic filing
of information returns are now available, and will be accepted for
processing starting January 13, 2025.
b) How to file
The CRA outlines the steps for electronically filing information
returns as follows:
- Prepare Documentation: Create an XML file for your return.
- Determine your filing method: Use either Web Forms for small
volumes (up to 100 slips) or Internet file transfer for larger
submissions. These can be accessed via My Business Account or
Represent a Client. To access directly to the Web Forms or Internet
file transfer applications, you will need your account number or
web access code. - Transfer the file to the CRA: Instructions are provided for
filing with Web Forms or Internet file transfer. Send your file,
and receive a confirmation to ensure it was successfully
filed.
The CRA webpage currently notes that electronic filing will be
temporarily unavailable from December 2, 2024, to January 13,
2025.
c) Make correction after filing
The CRA provides a clear process for amending or cancelling tax
slips after an initial filing. Both Web Forms and Internet File
Transfer (XML) can handle corrections, allowing users to adjust
data while following the CRA’s specific protocols.
To view the full article please click here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
