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Meeting Summary – Annual General Meeting of June 13–14, 2013

Political Finance: Bill C-48: The Technical Tax Amendments Act 2012

This session was led by Sylvain Dubois (Deputy Chief Electoral Office, Political Financing) and Brian Berry (Director, Political Financing, Systems and Program Administration). They were assisted by Jeff Merrett (Assistant Director, Political Financing and Audit).

Discussion

Following a series of questions from members on auctions and draws, Mr. Berry noted that the presented variation applies mainly to auctions and draws that constitute a fundraising activity. The examples provided in the presentation are contributions as per the Canada Elections Act. The new legislation (Bill C-48) implies that auctions and draws are no longer valid for income tax receipts, but remain valid for contribution receipts. Contributions are subject to limits as set out in the Act.

Members put forward a number of specific examples and scenarios during the discussion.

Mr. Berry advised that questions with respect to the definition of the advantage received or the eligible amount for tax purposes should be addressed by those political entities that issue tax receipts to the Canada Revenue Agency, while questions with respect to Canada Elections Act definitions should be addressed to Elections Canada.

Elections Canada indicated that this new rule will be in effect once Bill C-48 receives Royal Assent and that parties should re-issue receipts for the earlier part of the year because the law is retroactive.