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Political Financing Handbook for Electoral District Associations and Financial Agents (EC 20089) – October 2017

4. Transfers

This chapter explains the rules and procedures for accepting and sending transfers. It covers the following topics:

What is a transfer?

A transfer is a provision of funds, property or services between specified political entities of the same political affiliation. Where specifically permitted under the Canada Elections Act, a transfer is not considered to be a contribution, and contribution rules therefore do not apply.

Monetary transfer Non-monetary transfer
A monetary transfer is a transfer of funds. A non-monetary transfer is a transfer of property or services. The amount of a non-monetary transfer is the commercial value of the property or service.

Unlike non-monetary contributions, a non-monetary transfer has to be reported even if it is below $200.

Transfers are permitted only between related political entities (registered party, electoral district association, candidate and leadership or nomination contestant) of the same political affiliation.

However, not all types of entities are authorized to provide all types of transfers. For a quick reference guide to eligible and ineligible transfers, see the Transfers–types and rules table in Chapter 1, Reference Tables and Timelines.

Note: If an invoice requiring payment is prepared by one political entity and sent to its related political entity, together with a third party vendor invoice representing the commercial value of the goods or services provided, this is not a transfer but a sale of goods or services from one entity to another.

Transfers sent to the registered association

Only the financial agent can accept transfers on the registered association's behalf. The following transfers may be accepted by a registered association:

If the registered association receives property or services from an affiliated political entity for less than the commercial value, the financial agent has to report the difference as a non-monetary transfer from the affiliated political entity.

Example

After election day, the candidate's campaign transfers 100 unused signs and 750 recovered signs to the registered association. The commercial value of the 850 signs is calculated by the candidate's campaign, and the registered association reports the amount as a non-monetary transfer from the candidate.

Note: Transfers may not be accepted from provincial parties or provincial electoral district associations. Transfers from a registered provincial division of a federal registered party are considered transfers from the registered party.

Transfers sent by the registered association

Only the financial agent can send transfers on the registered association's behalf.

The registered association may transfer property, services or funds to the following political entities:

For transfers to a candidate, the following should be kept in mind:

The registered association may transfer property or services, but not funds, to the following political entities:

Example

The registered association purchases tablets and transfers them to the candidate. The financial agent sends a copy of the original supplier invoice to the candidate's campaign and reports the commercial value of the tablets as a non-monetary transfer. The candidate's official agent reports the same commercial value as an electoral campaign expense and as a non-monetary transfer from the registered association.