Backgrounders
Contributions and Expenses at a Federal Election or
By-election: Candidates and Registered Parties
The Canada Elections Act includes financial provisions designed to ensure openness, fairness and accessibility in our electoral system.
Limits on contributions
Only Canadian citizens or permanent residents may make political contributions, in the following amounts:
- no more than $1,100* in any calendar year to each registered political party
- no more than $1,100* in total in any calendar year to the various entities of each registered political party (registered associations, nomination contestants and candidates)
- no more than $1,100* to each independent candidate for a particular election
- no more than $1,100* in total to the leadership contestants in a particular leadership contest
A nomination contestant, candidate or leadership contestant may also make the following additional contribution out of his or her own funds to his or her own campaign:
- A nomination contestant or candidate of a registered party may give up to $1,000 in total per election, divided between his or her nomination or candidate campaigns as the individual wishes.
- A leadership contestant of a registered party may give up to $1,000 per contest.
- A candidate who does not represent a registered party may give up to $1,000 per election.
This additional contribution is not subject to the inflation adjustment factor and does not count against the individual's personal contribution limit.
Unlimited contributions
There is no limit to a contribution made in an individual's will as an unconditional, non-discretionary contribution ("testamentary disposition").
Indirect contributions
Making an indirect contribution is an offence – that is, an individual must not make a political contribution that comes from the money, property or services of another person or entity (including a company or other organization) if that other person or entity gave it to the individual to make a political contribution. The prohibition applies to indirect contributions to a registered party, registered association, candidate, nomination contestant and leadership contestant.
Anonymous contributions
If the organizers of a registered association's meeting or fundraising event collect anonymous contributions of $20 or less per person, the person authorized to accept those contributions must record a description of the function and its date, the approximate number of people present and the total amount of anonymous contributions accepted.
Prohibited contributions
It is illegal for anyone (including a company or other organization) to solicit or accept a contribution on behalf of a registered party, registered association or candidate if that person or organization made a representation to the contributor or potential contributor that any part of the contribution would be transferred to a person or entity other than the registered party, a candidate, leadership contestant or electoral district association. It is also illegal for anyone to collude with someone else (including a company or other organization) to circumvent this prohibition.
It is also prohibited for an individual to make a cash contribution in an amount that exceeds $20.
In addition, corporations, trade unions and individuals who are not Canadian citizens or permanent residents are forbidden to make political contributions.
New requirements for gifts to candidates
Candidates may not accept any "gift or other advantage" (see definition below) from the day on which they become candidates for the purposes of these provisions (see definition below) to the day they withdraw or become members of Parliament, or election day, in any other case.
The gifts or advantages to which these provisions apply are those "that might reasonably be seen to have been given to influence [the candidate] in the performance of his or her duties and functions as a member, were the candidate to be elected."
Exception: A candidate may accept a gift or other advantage that is given by a "relative" (see definition below) or as a normal expression of courtesy or protocol.
Reporting requirements: Within four months after election day, candidates must send the Chief Electoral Officer a statement with the name and address of every person or organization from which they received gifts or other advantages worth more than $500 during the candidacy period, as defined in the Act. Candidates must also report the nature of each gift, its commercial value and cost, if any, to the candidate and the circumstances under which it was given. This statement is confidential, but may be examined by the authorities that prosecute offences under the Canada Elections Act.
Definitions
- Gift or other advantage means:
- an amount of money if there is no obligation to repay it
- a service or property, or the use of property or money, that is provided without charge or at less than its commercial value
- Candidate:
- the day on which he or she is selected at a nomination contest, or
- the day on which the writ is issued for the election
- Relative:
A relative is a person related to the candidate by marriage, common-law partnership, birth, adoption or affinity.
- Common-law partnership:
If two persons have cohabited in a conjugal relationship for at least one year, the relationship is defined as a common-law partnership.
Contributions by an eligible individual or transfers as defined in section 404.2 of the Act are not considered gifts or other advantages for the purposes of these provisions.
For the purpose of these provisions, a person becomes a candidate on the earlier of:
Coming into force: The provisions on gifts come into force on June 12, 2007.
Election expenses
Only persons authorized by the Act may incur election expenses. Candidates and registered parties are subject to indexed election expenses limits based on the higher of:
- the number of electors registered on the preliminary lists of electors in the applicable ridings, or
- the number of electors registered on the revised lists of electors in the applicable ridings
For candidates only, this limit is adjusted in certain circumstances:
- In a general election, if the number of electors on the preliminary or revised lists of electors in any riding is less than the average number on all preliminary or revised lists of electors in that general election, the number of electors used for the calculation of the limit is halfway between the number on the lists in that riding and the average number on all preliminary or revised lists of electors, as the case may be.
- In a by-election, if the number of electors on the preliminary or revised lists in the riding is less than the average number on all revised lists of electors in the preceding general election, the number of electors used for the calculation of the limit is halfway between the number on the lists in the riding and that average number.
- If the number of electors per square kilometre is less than 10, based on the preliminary or revised lists of electors in a riding, the dollar amount per elector is increased according to a formula set out in the Act.
- If a candidate endorsed by a registered political party dies between 2:00 p.m. on the fifth day before nominations close and election day, the election is postponed; at the postponed election, all candidates are entitled to 150 percent of the normal base election expenses limit.
Registered political parties and candidates must not exceed the election expenses limits calculated by the Chief Electoral Officer under the formulas provided in the Act.
Reimbursements
If a candidate is elected or receives at least 10 percent of the valid votes cast in his or her riding at an election, the Chief Electoral Officer will authorize the Receiver General to send the candidate's official agent, or a person designated by him or her, a reimbursement of 15 percent of the expenses limit for that riding shortly after the return of the writs. If the candidate also complies with all the post-election requirements of the Act, he or she will qualify for a second instalment representing a reimbursement of 60 percent of actual election and personal expenses paid, minus the amount already received. The total reimbursement may not exceed 60 percent of the election expenses limit for the riding.
All candidates are entitled to full refunds of their $1,000 deposits, provided they comply with the reporting requirements of the Act and return unused official receipts within certain deadlines.
Registered political parties that obtain at least 2 percent of the total valid votes cast in a general election, or 5 percent of the valid votes cast in the ridings where they have endorsed candidates, are entitled to a reimbursement of 50 percent of their actual election expenses paid.
Election advertising restrictions
Section 323 of the Canada Elections Act does not permit individuals to knowingly transmit election advertising to the public on election day.
Participation in the electoral process
Voting is not the only way to take part in the electoral process. Political parties and candidates can accept volunteer labour, as well as goods or services and financial contributions.
Volunteer labour means any service provided free of charge by a person, outside of that person's working hours. Volunteer labour is not considered a contribution and is not subject to the eligibility rules for contributions or contribution caps. It does not include a service provided by a person who is self-employed, if the service is one that is normally sold or otherwise charged for by that person; in this case, the services provided are considered contributions and are subject to the rules respecting contributions, including the requirement to be disclosed.
Receipts
The official agent or registered agent must issue a receipt for each contribution over $20.
Official tax receipts
Receipts valid for income tax purposes may be issued by the official agent of a candidate only for monetary contributions received during the period that begins on the day the nomination of the candidate is confirmed by the returning officer, and ending on election day. However, for contributions in transit on election day, the official agent has 30 days after election day to issue a receipt valid for income tax purposes.
Outside an election period, only the registered agent of a registered party or a registered association, if authorized, may issue receipts valid for income tax purposes for monetary contributions to the registered party or registered association.
No official tax receipts
The Income Tax Act prohibits issuing receipts valid for income tax purposes for non-monetary contributions.
Income tax credits
The Income Tax Act provides the following tax credits in any one calendar year:
| Contribution amount | Corresponding tax credit |
|---|---|
| $0.01 to $400.00 | 75 percent of the contribution |
| $400.01 to $750.00 | $300 plus 50 percent of the contribution over $400 |
| $750.01 and over | $475 plus 33⅓ percent of the contribution over $750 |
Public disclosure
Through their official agents, candidates must submit an audited electoral campaign return to the Chief Electoral Officer within four months of election day. Among other information, the candidate's return must show all electoral campaign expenses incurred, the amounts of all contributions and the names, addresses and dates the contributions were provided of all those whose aggregate contributions exceeded $200.
Following a general election, every registered political party is required to submit an audited return of its election expenses to the Chief Electoral Officer within six months of election day. Registered parties are also required to submit an annual fiscal period return, disclosing (among other information) any by-election expenses, the expenditures of the party during the fiscal period, the amount and source of all contributions, the names and addresses of those whose aggregate contributions exceeded $200 as well as the dates on which the contributions were provided. This return must be submitted to the Chief Electoral Officer within six months after the end of the fiscal period to which the return relates.
The Chief Electoral Officer publishes a summary of each candidate's return in whatever media he deems appropriate. Returning officers keep all candidates' returns for six months so that anyone who wishes to consult them or obtain extracts may do so. After that initial period, the returns may be examined at Elections Canada in Ottawa.
The Chief Electoral Officer also publishes the financial returns of registered political parties and candidates in whatever form and media he deems appropriate.
The Elections Canada Web site includes a searchable database of:
- the contributions received and the election expenses incurred by candidates for all general elections since the general election of October 1993 and all by-elections since 1997
- the election expenses incurred by registered political parties at the last general election and their receipts and expenses by fiscal period since 1993
For more information, please contact:
Elections Canada
257 Slater Street
Ottawa, Ontario
K1A 0M6
Telephone
1-800-463-6868
toll-free in Canada and the United States
001-800-514-6868
toll-free in Mexico
613-993-2975
from anywhere in the world
For people who are deaf or hard of hearing:
TTY 1-800-361-8935
toll-free in Canada and the United States
Fax
613-954-8584
1-888-524-1444
toll-free in Canada and the United States
This publication is available in alternative formats.
December 2006
*The Act provides for a maximum contribution limit of $1,000, subject to an inflation adjustment on April 1 of each year. On January 1, 2007, the contribution limit reached $1,100, based on the inflation adjustment of April 1, 2006. For more information, go to www.elections.ca > Election Financing > General Information on Election Financing > Limits on Contributions.