{"id":18115,"date":"2014-08-29T16:40:43","date_gmt":"2014-08-29T20:40:43","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=18115"},"modified":"2014-08-29T16:43:32","modified_gmt":"2014-08-29T20:43:32","slug":"a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/","title":{"rendered":"A Matter of Balance: CRA\u2019s Implementation of the  Ineligible Individual Rules of the Income Tax Act"},"content":{"rendered":"<p>THIS POST HAS BEEN WRITTEN BY GUEST AUTHOR BARRY W. BUSSEY, VP-LEGAL AFFAIRS, CCCC<\/p>\n<p>Canada Revenue Agency (CRA) confirmed that it will exercise its discretion \u201cin a balanced way\u201d when regulating the ineligible individual provisions of the <em>Income Tax Act<\/em> (<em>ITA<\/em>) that came into force on January 1, 2012. This article will review <a href=\"http:\/\/www.cra-arc.gc.ca\/chrts-gvng\/chrts\/plcy\/cgd\/cg-024-eng.html?utm_source=charities&#038;utm_medium=eml\">CRA\u2019s recently released Ineligible Individuals Guidance CG-024<\/a> as it relates to Christian charities. You are encouraged to read the whole guidance and its appendices.<br \/>\nCRA\u2019s Ineligible Individuals Guidance may appear intimidating at first glance\u2014it\u2019s about 37 printed pages. However, it is well laid out and provides sufficient examples to make the content understandable for the average reader. It also has six appendices that are very helpful in assisting charities to navigate through the issues. The first four in particular will be great resources for your charity to have on hand. Appendix A is a self-assessment questionnaire, entitled, \u201cAm I an ineligible individual?\u201d; Appendix B gives helpful suggestions to assist a charity in protecting its organization, people, and resources; Appendix C provides the 10 most frequent questions and answers; and Appendix D provides a checklist for registered charities regarding ineligible individuals.<\/p>\n<h2><strong>The Mischief Meant To Be Addressed<\/strong><\/h2>\n<p>Government public policy makers decided some time ago that it was unjust for individuals to \u00a0engage in abusive practices, cause their charity to deregister, and then turn around and open up another charity under a new name with a new registration number.\u00a0 A systemic approach was necessary to remove the ease with which these unscrupulous individuals could fraudulently issue charitable receipts, misappropriate charitable assets, or engage in outlandish tax shelters. The method chosen to control this abuse was to enforce certain standards that needed to be met to serve on a charity\u2019s board or to manage the charity. Hence, the ineligible individual rules were created.<br \/>\nUnder these rules, if CRA determines a person to be an \u201cineligible individual,\u201d then CRA has the discretion to refuse or revoke that charity\u2019s registration or suspend its receipting privileges. This, of course, could be disastrous as donations are the lifeblood for any charitable organization. However, as explained below, just because there may be an ineligible individual actively involved in a charity does not mean that the charity faces immediate deregistration. Under such circumstances, the charity has the onus to explain to CRA\u2019s satisfaction why such individuals are involved and what is in place to protect the charity.<\/p>\n<h2>\n<strong>The Enforcement Approach<\/strong><\/h2>\n<p>Given the sheer magnitude of possible variations in the charitable sector, CRA will review every case separately. \u00a0While the<em> ITA<\/em> has given CRA a \u201cbig stick\u201d to enforce compliance, it does not seek to be heavy handed. When there are concerns about an ineligible individual, CRA will allow the charity to reply to CRA\u2019s concerns before action is taken.[1] There may be legitimate reasons why a charity would need an ineligible individual to serve with their organization\u2014for example, ministries working with prison inmates may require the assistance of ex-convicts.<br \/>\nOf course, we won\u2019t fully understand how the new regime works until we witness how CRA audits on the issue. It is nevertheless comforting to know that CRA\u2019s approach is a balanced one and that it recognizes that most charities desire compliance.<\/p>\n<h2><strong>The Definition of \u201cIneligible Individual\u201d<\/strong><\/h2>\n<p>The <em>ITA<\/em> defines an \u201cineligible individual\u201d as a person who<\/p>\n<ul>\n<li>has been convicted of a \u201crelevant criminal offence\u201d (a person who meets this criteria will be ineligible until a pardon is granted or record suspended) or a \u201crelevant offence\u201d (a person who meets this criteria will be ineligible for 5 years from the date of revocation); or<\/li>\n<li>was connected to a charity that had its registered status revoked for a serious breach (a person who meets this criteria will be ineligible for 5 years from the date of revocation); or<\/li>\n<li>was a promoter of a tax shelter which led to the revocation of a charity\u2019s registered status (a person who meets this criteria will be ineligible for 5 years from the date of revocation).<\/li>\n<\/ul>\n<h2><strong>Relevant Offences<\/strong><\/h2>\n<ul>\n<li><strong>Criminal.<\/strong> A \u201crelevant criminal offence\u201d is a criminal offence under the laws of Canada or an act that would be a criminal offence if committed in Canada. If there is a pardon or a record suspension, then it is not a \u201crelevant criminal offence.\u201d It is relevant in that the crime relates to financial dishonesty (misappropriation of funds, intentional misstatements in financial records, forgery or alteration of financial documents, and fraud) or relevant to the operation of the charity (determined on a case-by-case basis).<\/li>\n<\/ul>\n<ul>\n<li><strong>Non-Criminal \u2013 Relevant Offence. <\/strong>A \u201crelevant offence\u201d could also be committed under other legislation (federal or provincial), such as charitable fundraising legislation, consumer protection legislation, and securities legislation. It is relevant in that the offence relates to financial dishonesty or relevant to the operation of the charity.<\/li>\n<\/ul>\n<h2><strong>Revoked Organization for Serious Breach<\/strong><\/h2>\n<p>It was a concern of CCCC that a person not be considered an ineligible individual simply because he or she was connected to a charity whose registration was revoked because of a missed deadline, such as the failure to file the T3010. CRA has reiterated in this Guidance its \u201cgraduated approach to compliance enforcement.\u201d In other words, revocation of registration will happen only when a registered organization cannot or will not comply with the requirements.<br \/>\nTherefore, if a person is to be declared an ineligible individual under this category, the breach must be serious. It is serious, for example, if the revocation is the result of an audit that reveals fraudulent receipting, misappropriation of assets, or abusive tax shelters. Revocation for the failure to file a T3010 will not normally be considered serious. However, if there are repeated failures to file, then one can expect to arrive at a serious level. The guidance does not tell us how many times it would take, but I would suggest that a failure to file two years in a row would be a reason to be concerned.<\/p>\n<h2><strong>Connected to the Charity<\/strong><\/h2>\n<p>The Guidance suggests that an ineligible individual could be connected to a charity in a number of ways:<\/p>\n<ul>\n<li>as a director, trustee, officer (as listed in the governing documents), or like official (a person who has influence over the organization such as a member of the clergy);<\/li>\n<li>as a person who, directly or indirectly, controlled or managed the revoked organization (this will include those who serve voluntarily, for example, as a board member or an employee who manages other employees or prepares budgets etc.);<\/li>\n<li>as a promoter of a tax shelter that caused the organization\u2019s registration to be revoked.<\/li>\n<\/ul>\n<h2><strong>A Promoter of a Tax Shelter<\/strong><\/h2>\n<p>Tax shelters are notorious for trouble. CCCC has been consistent in its message that Christian charities avoid them like the plague. In essence, the claim of a tax shelter is that a gift arrangement or the acquisition of property by the charity allows the donor to obtain tax benefits and deductions that will equal or exceed the net costs of entering into the arrangement. The promoter of these schemes are not highly esteemed by the CRA Charities Directorate. Promoters include the person (or persons) who:<\/p>\n<ul>\n<li>sells or issues participating shares in the tax shelter;<\/li>\n<li>promotes the sale, issuance, acquisition, or participating shares in the tax shelter;<\/li>\n<li>acts as an agent or adviser for the sale or issuance of participating shares in the tax shelter;<\/li>\n<li>acts as an agent or adviser to promote, sell, or acquire a participating interest in the tax shelter; or<\/li>\n<li>accepts consideration for his or her role in the tax shelter.<\/li>\n<\/ul>\n<h2><strong>Once CRA Discovers an Ineligible Individual<\/strong><\/h2>\n<p>If your organization has been flagged by CRA for having an ineligible individual, CRA has the power to<\/p>\n<ul>\n<li>refuse to register the organization;<\/li>\n<li>suspend the organization\u2019s receipting privileges;<\/li>\n<li>revoke the organization\u2019s registration.<\/li>\n<\/ul>\n<p>However, the Guidance is clear that before the CRA makes up its mind, it will set out its concerns in writing and allow the charity an opportunity to respond. \u00a0If the contact person is the ineligible individual, CRA may also communicate with another official of the charity. The onus is on the charity to convince CRA why such a person ought to remain. What is very important to remember is that CRA must be assured that the charity\u2019s assets and the interests of the beneficiaries are protected. Of course, CRA\u2019s decision can be objected to if the charity believes CRA has misinterpreted the facts or misapplied the law.<br \/>\nUpon reviewing the evidence, CRA may determine that beneficiaries and assets have been adequately and appropriately protected. \u00a0This would allow the ineligible individual to remain on the charity board or in a position to control or manage its work. There would then be no worry about its registration and receipting privileges.<\/p>\n<h2><strong>What CRA Considers<\/strong><\/h2>\n<p>CRA has outlined a series of deep and probing questions to determine its course of action. The following questions are outlined in the Guidance:<\/p>\n<ul>\n<li>What made the person an ineligible individual?<\/li>\n<li>What impact did the conduct have (for example, victim impact, dollar value)?<\/li>\n<li>Did the ineligible individual engage in the conduct more than once?<\/li>\n<li>What roles and responsibilities does the ineligible individual have in the organization?<\/li>\n<li>Is there an opportunity for the ineligible individual to repeat the conduct?<\/li>\n<li>If repeated, what impact would that conduct have (on beneficiaries and assets)?<\/li>\n<li>How has the organization lessened whatever risk the ineligible individual may pose?<\/li>\n<li>Is the organization aware of the person\u2019s past conduct and that the person is an ineligible individual?<\/li>\n<li>Has the ineligible individual\u2019s roles and responsibilities been appropriately restricted?<\/li>\n<li>Are there appropriate financial controls in place to safeguard assets?<\/li>\n<li>How is the safety of beneficiaries ensured?<\/li>\n<\/ul>\n<p>Just because CRA does not act does not mean it is of the view that the ineligible individual poses no risk. It just means that CRA has decided to do nothing for the time being. The Guidance suggests that \u201cYou may want to consult a legal advisor, your insurer, a charitable sector advisory group, or provincial or territorial officials on any related governance or administrative concerns.\u201d<\/p>\n<h2><strong>How to Respond to the CRA\u2019s Concerns<\/strong><\/h2>\n<p>Receiving a letter from CRA on this matter can be a time of stress. Obtaining experienced legal counsel at this point is advised. Once a letter is received, the charity will have an opportunity to respond, and CRA will make its own decision on what action it will take based on the charity\u2019s response. No response from the charity will in all likelihood lead to the severe sanctions canvassed in the CRA letter.<br \/>\nIf you do not agree with CRA\u2019s assessment of the situation, you will need to provide evidence to the contrary of CRA\u2019s concern. Here are some possible reasons:<\/p>\n<ul>\n<li>The person in question did not make the application or no longer is a director, trustee, officer, or like official or no longer controls or manages the charity.<\/li>\n<li>The person in question is necessary for the work the charity does (as in the case of former convicts in prison ministry), and assets and beneficiaries are protected from such persons.<\/li>\n<li>The person in question is not involved in financial decisions and does not have access to its assets.<\/li>\n<li>There are appropriate and adequate control measures in place.<\/li>\n<\/ul>\n<p>Mere declarations of fact will not suffice. Charities responding to CRA will need to provide information that clearly shows that the CRA based its conclusions on incorrect information or a misinterpretation of the facts. Provide relevant documentation, such as the following:<\/p>\n<ul>\n<li>minutes of board meetings in which signing authorities for the organization\u2019s bank accounts were decided<\/li>\n<li>policies indicating the organization\u2019s financial controls and how the organization enforces them<\/li>\n<li>copies of ledgers, cheques, or financial reports indicating who has access to the organization\u2019s assets (and that it is not the ineligible individual)<\/li>\n<\/ul>\n<h2><strong>Appendices<\/strong><\/h2>\n<p><strong>Appendix A<\/strong> is a self-assessment questionnaire \u201cAm I an ineligible individual?\u201d This is a very helpful document to assist charities in their hiring and appointment practises.<br \/>\n<strong>Appendix B<\/strong> provides a number of suggestions that charities can use to protect their beneficiaries and assets. Topics include \u201cDue diligence,\u201d \u201cRisk assessment,\u201d \u201cFraud prevention,\u201d \u201cFinancial controls,\u201d \u201cProtecting beneficiaries,\u201d and \u201cResources.\u201d<br \/>\n<strong>Appendix C<\/strong> is a series of 10 questions and answers:<\/p>\n<ul>\n<li>How do I know if I\u2019m an ineligible individual?<\/li>\n<li>Will the CRA clear me to serve on a board or work at a registered organization?<\/li>\n<li>Can an ineligible individual serve on a board, work, or volunteer for a registered organization?<\/li>\n<li>What should I do to protect my organization\u2019s receipting privileges and registration?<\/li>\n<li>What if I think I am being treated unfairly?<\/li>\n<li>Can an ineligible individual be an employee or board member of a registered organization?<\/li>\n<li>Should a registered organization refuse to accept an ineligible individual as an employee or director?<\/li>\n<li>Must a registered organization notify the CRA if it knows of an ineligible individual?<\/li>\n<li>Is it necessary to do screening and background checks?<\/li>\n<li>Are there other restrictions on directors, trustees, officers and like officials?<\/li>\n<\/ul>\n<p><strong>Appendix D<\/strong> is a checklist for registered organizations regarding ineligible individuals<br \/>\n<strong>Appendix E \u2013<\/strong> Definitions \u2013 <em>Income Tax Act<\/em> \u2013 149.1(1)<br \/>\n<strong>Appendix F \u2013<\/strong> Authorities \u2013 <em>Income Tax Act<\/em><br \/>\n[1] See para. 3 of the Guidance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>THIS POST HAS BEEN WRITTEN BY GUEST AUTHOR BARRY W. BUSSEY, VP-LEGAL AFFAIRS, CCCC Canada Revenue Agency (CRA) confirmed that it will exercise its discretion \u201cin a balanced way\u201d when regulating the ineligible individual provisions of the Income Tax Act (ITA) that came into force on January 1, 2012. This&#8230; <a href=\"https:\/\/cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/\" class=\"linkbutton\">More<\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ts_fic_featured_image_caption":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[],"tags":[],"series":[],"class_list":["post-18115","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act - CCCC Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act - CCCC Blogs\" \/>\n<meta property=\"og:description\" content=\"THIS POST HAS BEEN WRITTEN BY GUEST AUTHOR BARRY W. BUSSEY, VP-LEGAL AFFAIRS, CCCC Canada Revenue Agency (CRA) confirmed that it will exercise its discretion \u201cin a balanced way\u201d when regulating the ineligible individual provisions of the Income Tax Act (ITA) that came into force on January 1, 2012. This... More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/\" \/>\n<meta property=\"og:site_name\" content=\"CCCC Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CCCCCharities\" \/>\n<meta property=\"article:published_time\" content=\"2014-08-29T20:40:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2014-08-29T20:43:32+00:00\" \/>\n<meta name=\"author\" content=\"Deina Warren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cccccharities\" \/>\n<meta name=\"twitter:site\" content=\"@cccccharities\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Deina Warren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/\"},\"author\":{\"name\":\"Deina Warren\",\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#\\\/schema\\\/person\\\/ebdf91372c7d841de19e5a1eb3344c97\"},\"headline\":\"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act\",\"datePublished\":\"2014-08-29T20:40:43+00:00\",\"dateModified\":\"2014-08-29T20:43:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/\"},\"wordCount\":2203,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#organization\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/\",\"url\":\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/\",\"name\":\"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act - CCCC Blogs\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#website\"},\"datePublished\":\"2014-08-29T20:40:43+00:00\",\"dateModified\":\"2014-08-29T20:43:32+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/mail.cccc.org\\\/news_blogs\\\/legal\\\/2014\\\/08\\\/29\\\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#website\",\"url\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/\",\"name\":\"CCCC News &amp; Blogs\",\"description\":\"CCCC Blogs\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#organization\",\"name\":\"Canadian Centre for Christian Charities\",\"url\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/www.cccc.org\\\/news_blogs\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/260wbRGB.png?fit=260%2C260&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/www.cccc.org\\\/news_blogs\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/260wbRGB.png?fit=260%2C260&ssl=1\",\"width\":260,\"height\":260,\"caption\":\"Canadian Centre for Christian Charities\"},\"image\":{\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/CCCCCharities\",\"https:\\\/\\\/x.com\\\/cccccharities\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/canadian-council-of-christian-charities\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.cccc.org\\\/news_blogs\\\/#\\\/schema\\\/person\\\/ebdf91372c7d841de19e5a1eb3344c97\",\"name\":\"Deina Warren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2fffd55f4003e713f308c93fe98b05eb4c7911940d0e4a7e183cd3456e4c9356?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2fffd55f4003e713f308c93fe98b05eb4c7911940d0e4a7e183cd3456e4c9356?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2fffd55f4003e713f308c93fe98b05eb4c7911940d0e4a7e183cd3456e4c9356?s=96&d=mm&r=g\",\"caption\":\"Deina Warren\"},\"description\":\"The content provided in this blog is for general information purposes and does not constitute legal or professional advice. Every organization\u2019s circumstances are unique. Before acting on the basis of information contained in this blog, readers should consult with a qualified lawyer for advice specific to their situation.\",\"sameAs\":[\"https:\\\/\\\/www.cccc.org\",\"simone.waller@cccc.org\"],\"url\":\"https:\\\/\\\/cccc.org\\\/news_blogs\\\/author\\\/legal\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act - CCCC Blogs","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/","og_locale":"en_US","og_type":"article","og_title":"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act - CCCC Blogs","og_description":"THIS POST HAS BEEN WRITTEN BY GUEST AUTHOR BARRY W. BUSSEY, VP-LEGAL AFFAIRS, CCCC Canada Revenue Agency (CRA) confirmed that it will exercise its discretion \u201cin a balanced way\u201d when regulating the ineligible individual provisions of the Income Tax Act (ITA) that came into force on January 1, 2012. This... More","og_url":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/","og_site_name":"CCCC Blogs","article_publisher":"https:\/\/www.facebook.com\/CCCCCharities","article_published_time":"2014-08-29T20:40:43+00:00","article_modified_time":"2014-08-29T20:43:32+00:00","author":"Deina Warren","twitter_card":"summary_large_image","twitter_creator":"@cccccharities","twitter_site":"@cccccharities","twitter_misc":{"Written by":"Deina Warren","Est. reading time":"11 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/#article","isPartOf":{"@id":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/"},"author":{"name":"Deina Warren","@id":"https:\/\/www.cccc.org\/news_blogs\/#\/schema\/person\/ebdf91372c7d841de19e5a1eb3344c97"},"headline":"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act","datePublished":"2014-08-29T20:40:43+00:00","dateModified":"2014-08-29T20:43:32+00:00","mainEntityOfPage":{"@id":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/"},"wordCount":2203,"commentCount":0,"publisher":{"@id":"https:\/\/www.cccc.org\/news_blogs\/#organization"},"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/","url":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/","name":"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act - CCCC Blogs","isPartOf":{"@id":"https:\/\/www.cccc.org\/news_blogs\/#website"},"datePublished":"2014-08-29T20:40:43+00:00","dateModified":"2014-08-29T20:43:32+00:00","breadcrumb":{"@id":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/mail.cccc.org\/news_blogs\/legal\/2014\/08\/29\/a-matter-of-balance-cras-implementation-of-the-ineligible-individual-rules-of-the-income-tax-act\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.cccc.org\/news_blogs\/"},{"@type":"ListItem","position":2,"name":"A Matter of Balance: CRA\u2019s Implementation of the Ineligible Individual Rules of the Income Tax Act"}]},{"@type":"WebSite","@id":"https:\/\/www.cccc.org\/news_blogs\/#website","url":"https:\/\/www.cccc.org\/news_blogs\/","name":"CCCC News &amp; Blogs","description":"CCCC Blogs","publisher":{"@id":"https:\/\/www.cccc.org\/news_blogs\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.cccc.org\/news_blogs\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":"Organization","@id":"https:\/\/www.cccc.org\/news_blogs\/#organization","name":"Canadian Centre for Christian Charities","url":"https:\/\/www.cccc.org\/news_blogs\/","logo":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.cccc.org\/news_blogs\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2020\/10\/260wbRGB.png?fit=260%2C260&ssl=1","contentUrl":"https:\/\/i0.wp.com\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2020\/10\/260wbRGB.png?fit=260%2C260&ssl=1","width":260,"height":260,"caption":"Canadian Centre for Christian Charities"},"image":{"@id":"https:\/\/www.cccc.org\/news_blogs\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/CCCCCharities","https:\/\/x.com\/cccccharities","https:\/\/www.linkedin.com\/company\/canadian-council-of-christian-charities"]},{"@type":"Person","@id":"https:\/\/www.cccc.org\/news_blogs\/#\/schema\/person\/ebdf91372c7d841de19e5a1eb3344c97","name":"Deina Warren","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/secure.gravatar.com\/avatar\/2fffd55f4003e713f308c93fe98b05eb4c7911940d0e4a7e183cd3456e4c9356?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/2fffd55f4003e713f308c93fe98b05eb4c7911940d0e4a7e183cd3456e4c9356?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2fffd55f4003e713f308c93fe98b05eb4c7911940d0e4a7e183cd3456e4c9356?s=96&d=mm&r=g","caption":"Deina Warren"},"description":"The content provided in this blog is for general information purposes and does not constitute legal or professional advice. Every organization\u2019s circumstances are unique. Before acting on the basis of information contained in this blog, readers should consult with a qualified lawyer for advice specific to their situation.","sameAs":["https:\/\/www.cccc.org","simone.waller@cccc.org"],"url":"https:\/\/cccc.org\/news_blogs\/author\/legal\/"}]}},"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":28451,"url":"https:\/\/cccc.org\/news_blogs\/legal\/2019\/06\/25\/the-senate-report-on-the-charitable-sector-what-you-need-to-know-donations-legislation\/","url_meta":{"origin":18115,"position":0},"title":"The Senate Report on the Charitable Sector: What You Need to Know, Donations &#038; Legislation","author":"Deina Warren","date":"June 25, 2019","format":false,"excerpt":"We\u2019re continuing our look at the Special Senate Committee on the Charitable Sector\u2019s report, Catalyst for Change: A Roadmap to a Stronger Charitable Sector. In Part One, we looked at the context of uncertainty surrounding the report and noted that there is no guarantee the recommendations will be pursued. Nonetheless,\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37003,"url":"https:\/\/cccc.org\/news_blogs\/legal\/2023\/08\/18\/qualifying-disbursements-grants-and-conditional-donations\/","url_meta":{"origin":18115,"position":1},"title":"Qualifying Disbursements, Grants, and Conditional Donations","author":"Deina Warren","date":"August 18, 2023","format":false,"excerpt":"Summary Recent amendments to the Income Tax Act prohibit charities from receiving donations that are conditional on the charity making a gift to a non-charity. Now that charities can give grants to non-charities, this blanket prohibition has created confusion about whether and how charities can accept gifts with a donor\u2026","rel":"","context":"In \"charitable donations\"","block_context":{"text":"charitable donations","link":"https:\/\/cccc.org\/news_blogs\/tag\/charitable-donations\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2023\/08\/nick-fewings-zF_pTLx_Dkg-unsplash-scaled.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2023\/08\/nick-fewings-zF_pTLx_Dkg-unsplash-scaled.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2023\/08\/nick-fewings-zF_pTLx_Dkg-unsplash-scaled.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2023\/08\/nick-fewings-zF_pTLx_Dkg-unsplash-scaled.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2023\/08\/nick-fewings-zF_pTLx_Dkg-unsplash-scaled.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":16581,"url":"https:\/\/cccc.org\/news_blogs\/legal\/2014\/01\/22\/manitoba-repeals-charitable-fundraising-law\/","url_meta":{"origin":18115,"position":2},"title":"Manitoba Repeals Charitable Fundraising Law","author":"Deina Warren","date":"January 22, 2014","format":false,"excerpt":"Manitoba\u2019s\u00a0charitable\u00a0fundraising law, the\u00a0Charities\u00a0Endorsement\u00a0Act, has been repealed, effective December 31, 2013. This means that\u00a0charities\u00a0in Manitoba are no longer required to register separately with the provincial government to raise funds in that province (although many religious organizations qualified for an exemption under the old law). The Charities\u00a0Endorsement\u00a0Act was repealed by Bill 46,\u2026","rel":"","context":"In &quot;Charity law and policy&quot;","block_context":{"text":"Charity law and policy","link":"https:\/\/cccc.org\/news_blogs\/category\/charity-law-and-policy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37732,"url":"https:\/\/cccc.org\/news_blogs\/legal\/2024\/04\/04\/cras-report-on-the-charities-program-2021-to-2022\/","url_meta":{"origin":18115,"position":3},"title":"CRA\u2019s Report on the Charities Program 2021 to 2022","author":"Deina Warren","date":"April 4, 2024","format":false,"excerpt":"The Canada Revenue Agency (CRA) recently released its Report on the Charities Program 2021 to 2022. It covers CRA\u2019s Charities Directorate activities from April 1, 2021 to March 31, 2022. The report contains a variety of information about CRA\u2019s role, consultations, revenue streams, audits, revocations, anti-terrorism monitoring, policy priorities, etc.\u2026","rel":"","context":"In \"charities\"","block_context":{"text":"charities","link":"https:\/\/cccc.org\/news_blogs\/tag\/charities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2024\/04\/Annual-Report-pic-square.jpg?fit=600%2C600&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2024\/04\/Annual-Report-pic-square.jpg?fit=600%2C600&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2024\/04\/Annual-Report-pic-square.jpg?fit=600%2C600&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":14665,"url":"https:\/\/cccc.org\/news_blogs\/cccc\/2011\/06\/05\/federal-budget-issued-june-6-2011\/","url_meta":{"origin":18115,"position":4},"title":"Federal Budget Issued June 6, 2011","author":"CCCC","date":"June 5, 2011","format":false,"excerpt":"All of the federal budget measures for charities previously announced on March 22, 2011, returned today in Budget 2011. The provisions are retroactive to March 22, 2011. This news release will recap those announcements and make recommendations for charities. The only new information for charities is that Parliament will ask\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":38073,"url":"https:\/\/cccc.org\/news_blogs\/cccc\/2024\/11\/20\/what-charities-need-to-know-about-the-canada-revenue-agency-cra-form-t1213\/","url_meta":{"origin":18115,"position":5},"title":"What Charities Need to Know About the Canada Revenue Agency (CRA) Form T1213","author":"CCCC","date":"November 20, 2024","format":false,"excerpt":"CRA form T1213 Request to Reduce Tax Deductions at Source may be filed by employees with CRA to request that CRA provide a Letter of Authority \u2013 which CRA will direct the employee to give to their employer - to reduce tax withholdings at source for non-basic tax credits or\u2026","rel":"","context":"In \"charities\"","block_context":{"text":"charities","link":"https:\/\/cccc.org\/news_blogs\/tag\/charities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2024\/11\/Untitled-design-65.png?fit=675%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2024\/11\/Untitled-design-65.png?fit=675%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/cccc.org\/news_blogs\/wp-content\/uploads\/2024\/11\/Untitled-design-65.png?fit=675%2C675&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/p30X8p-4Ib","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/18115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/comments?post=18115"}],"version-history":[{"count":0,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/18115\/revisions"}],"wp:attachment":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/media?parent=18115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/categories?post=18115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/tags?post=18115"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/series?post=18115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}