Official Notice of Fee Proposal For Services under the Canada Not-for-Profit Corporations Act (CNCA)

May 22, 2010 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, Canadian Charity Law, New corporate non-profit acts

Here is the “Official Notice of Fee Proposal For Services under the Canada Not-for-Profit Corporations Act”.  This notice which is required under the User Fee Act gives the public and idea of what fees are proposed for the CNCA - these may or may not be the final .  Nothing looks too out of the ordinary.  Perhaps a $40 fee for non-electronic filing of the annual return is a little much - but then again I think the message these days is do it electronically.  One thing that this process raised for me - if you are a federal non-profit (whether charitable or not) you pay all these fees to Industry Canada for the benefit of having incorporated federal non-profit status but why is it that you don’t have to pay any fees to the Charities Directorate when you apply for charitable status or for almost any other services they provide?

The US IRS charges $850 to apply for 501(c)(3) status which is similar to our registered charity status?  Most of the time when you don’t pay for something you don’t appreciate the value of it.  Perhaps charging a fee for charitable registration, like $200, would make some organizations think more carefully about applying and the obligations of being a registered charity.  Also the funds could be ploughed back into improving the operations of the Charities Directorate - everything from reviewing applications, having consultations and providing guidance on issues affecting charities, answering charity inquiries and going after scam charities, etc. 


http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs04533.html


Notice from the Director - Official Notice of Fee Proposal
PDF version (13.8 KB, 1 page)
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May 10, 2010

Official Notice of Fee Proposal
For Services under the Canada Not-for-Profit Corporations Act

Corporations Canada wishes to inform you that the official notice on the fees proposed under the Canada Not-for-Profit Act (Bill C-4) and the associated service standards has been published in the Canada Gazette, Part 1 on May 8, 2010.

Bill C-4 received Royal Assent on June 23, 2009. Consultations on the proposed fees and services standards were held from January 4 to February 5, 2010. The Official Notice of Fee Proposal is a required step under the User Fees Act to allow stakeholders to submit official complaints. Complaints may be resolved by an independent review panel. Once all complaints are resolved, the proposed fees will be tabled in the House of Commons and Senate for 20 sitting days for review. Once the User Fees Act process is complete, the proposed regulations which include the fees will then go through the regulatory process. This process involves pre-publication of the proposed regulations in the Canada Gazette, Part I before final approval can be obtained from Treasury Board.

You can obtain the Official Notice of Fee Proposal for Services under the Canada Not-for-Profit Corporations Act :

•on the Corporations Canada’s Website under the heading “What’s New” in the left hand menu;
•on the Canada Gazette website at http://www.gazette.gc.ca
•by contacting Corporations Canada directly at 1-866-333-5556 to obtain a copy by mail.
Comments on the proposed fees or service standards may be submitted to Corporations Canada by May 28, 2010. For further information, call 1-866-333-5556 or send an e-mail to .

Aissa Aomari
Acting Director General

—————-
http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs04534.html

Official Notice of Fee Proposal For Services under the Canada Not-for-Profit Corporations Act
PDF version (31.79KB, 3 pages)


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May 8, 2010

Purpose
This Official Notice of Fee Proposal is one of the steps required by the User Fees Act in order to set fees for services under the new Canada Not-for-Profit Corporations Act. Interested persons have 20 days following the publication of this notice in the Canada Gazette, Part I, to make an official complaint regarding the proposed fees and service standards.

Background
The Canada Not-For-Profit Corporations Act received Royal Assent on June 23, 2009. This Act will replace the Canada Corporations Act and provides a modern corporate governance regime for federal not-for-profit corporations. Before the NFP Act can come into force, the fees have to be first established in accordance with the process set out in the User Fees Act after which the regulations must then be approved by the Governor-in-Council.

Consultations on the proposed fees were held from January 4 to February 5, 2010.  Two comments were received. The first one stated that the proposed fees, costing methodology and service standards were fair and reasonable. The second one also supported the fee proposal and service standards.

Proposed Fees and Service Standards
The fees below are proposed for the services under the new Canada Not-for-Profit Corporations Act.

Receipt, Acceptance, Examination, Issuance or Copying of any Document and Other Actions under the Canada Not-for-Profit Corporations Act
 

Fee
Service Standards

Application sent to the Director for the following documents:
 
 

(a) a certificate of incorporation under section 9:
 
 

i) if the application is made using Industry Canada’s online incorporation feature (when available)
$200
  24 hours

ii) if the application is made using any other means
$250
5 business days

(b) a certificate of amendment under section 201 or subsection 215 (5)
$200
5 business days

(c) a restated certificate of incorporation under subsection 203(3) (unless issued with a certificate of amendment)
$50
5 business days

(d) a certificate of amalgamation under subsection 208(4)
$200
5 business days

(e) a certificate of continuance under subsection 211(5) (unless subsection 212(6) applies)
$200
5 business days

(f) a document evidencing satisfaction of the Director, as required under subsection 213(1)
$200
5 business days

(g) a certificate of arrangement under subsection 216(6)
$200
5 business days

(h) a certificate of revival under subsection 219(3)
$200
5 business days

(i) a certificate of revocation of intent to dissolve under subsection 221(11)
$50
5 business days

(j) a corrected certificate under subsection 288
$200
20 business days

Application sent to the Director for issuance of a certificate of compliance under subsection 290(1)
$10
1 business day

Application sent to the Director for issuance of a certificate of existence under section 290
$10
1 business day

Receipt of an annual return sent to the Director under section 278:
 
 

(a) if the annual report is filed using Industry Canada’s online incorporation feature (when available)
$20
N/A

(b) if the annual return is filed using any other means
$40
N/A

Application for exemption sent to the Director under subsection 2(6), 25(1), 25(2), 104(3) or 171(2), or section 173 or 271
$250
30 days

Provision by the Director of copies of documents under subsection 279(2)
$1 per page
1 business day or 6 business days for inactive corporations

Provision by the Director of certified copies of documents under subsection 279(2), per document
$35
1 business day or 6 business days for inactive corporations

Notes:


1.No fee will be charged for an application for a certificate of amendment if the only purpose of the amendment is to add an English or French version to the corporation’s name, or to replace a corporate name that the Director has directed to be changed under subsection 13(2).
2.No fee will be charged for a certificate of dissolution issued under subsection 220(5) or 221(15) nor for a certificate of intent to dissolve issued under subsection 221(5)
3.No fee will be charged for a corrected certificate issued under section 288 where the correction is required solely as the result of an error made by the Director.
Official Notification Period
The period within which complaints may be submitted begins on May 8, 2010 and ends on May 28, 2010.

Complaint Process
An official complaint may be made to Corporations Canada by email, fax or mail. Corporations Canada will attempt to resolve any complaints received and provide a proposed resolution in writing. If a complaint cannot be resolved to the complainant’s satisfaction within 30 days of the expiry of Official Notification Period, the complainant may make a request in writing that Corporations Canada refer the complaint to an independent advisory panel.

The User Fees Act stipulates that the regulating authority and the complainant must each select one member to sit on the panel and those members must select a third member within 40 days of the expiry of the Official Notification Period. The panel must, within 30 days after all members have been selected, send a report in writing of its findings and recommendations for resolving the dispute to the regulating authority and the complainant.

The panel has the power to award costs of the proceedings, including the cost of the fees and expenses of panel members. If, in the opinion of the panel, a complaint is frivolous or vexatious, the complainant bears all the costs.

Contact Details
Corporations Canada
Jean Edmonds Towers South
365 Laurier Avenue West
Ottawa, ON K1A OC8
E-mail:
Fax : 613-941-5781

Supporting Documents
For more information on how the fees were determined, you may wish to refer to the consultation documents which are available on the Corporations Canada website at http://www.corporationscanada.ic.gc.ca.

It is also possible to obtain a paper copy by communicating with Corporations Canada at 1-866-333-5556.

Corporations Canada
Industry Canada

 

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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

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416.361.1982
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