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In November of 2017, the CRA launched the “Charities Education Program” (“CEP”) to undertake in-person visits with registered charities. The purpose of the CEP Program is to provide charities with information to comply with their obligations and to answer any questions that charities may have.
Visits by the CRA Charities Education Program will involve:
- Information sharing, where a CRA officer will ask questions about a charity’s books and record keeping, and its purposes and activities, while educating the charity on its obligations such as operations, information returns, and donation receipts.
- Books and records review, including advice on their accuracy and completeness.
- Summary of CEP Findings and Recommendations, which the charity will be asked to sign.
The CRA is planning to select 500 Canadian charities per year for visits by the Charities Education Program, based on new registrations, information from Form T3010, and common non-compliance such as receipting. Although the CRA has stated that the Charities Education Program is not part of the traditional audit program, it will not preclude the possibility of an audit in the future.
Charities should always have accurate and complete books and records, and its tax filings should always be complete and current. If selected for the CRA Charities Education Program, our Manning Elliott tax advisors would recommend reading the Summary of Findings and Recommendations carefully prior to signing it.
If you have any questions regarding the Charities Education Program, please contact the Manning Elliott Tax Team for more information. To stay up to date on all future tax related articles, we invite you to subscribe to our mailing list.
The above content is believed to be accurate as of the date of posting. Canadian and US Tax laws are complex and are subject to frequent changes. Professional tax advice should be sought before implementing any tax planning. Manning Elliott LLP cannot accept any liability for the tax consequences that may result from acting based on the information contained therein.