Canadian charities and intermediate sanctions by the Canada Revenue Agency
Posted under News | What's New from the Charities Directorate of CRA | Canadian Charity Law | Avoiding 'Charity' Scams
It used to be that if a registered charity was non-compliant CRA either revoked the charity or could do little about the non-compliance. The times have changed. With the introduction of “intermediate sanctions” CRA now has lots more flexibility in how it deals with non-compliance. For example if you issue a receipt that contains false information CRA can fine the charity 125% on the eligible amount stated on the receipt. If a Canadian charity working with a foreign charity (or other non-qualified donee) does not maintain direction and control over transfers of funds and resources then such behaviour can land a charity with a 105%-$110% penalty on the amount of the transfer. Ouch!.
For a list of intermediate sanctions see: http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/csp/pnlts-eng.html
For the Guidelines for applying the new sanctions see http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/nwsnctns-eng.html
This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.