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Political Financing Handbook for Registered Parties and Chief Agents (EC 20231) – June 2017 – DRAFT guideline OGI 2017-03

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 of expenses are prohibited

It is important to differentiate between the candidate's electoral campaign expenses and the expenses of the candidate's registered party. The Canada Elections Act specifies separate expenses limits for the registered party and each of its candidates. The Act prohibits the transfer of expenses without accompanying property or services. Each entity has to report the expenses it incurred for property and services it used during the electoral campaign.

Transfers sent to the registered party

Only the chief agent and authorized registered agents can accept transfers on the registered party's behalf. The following transfers may be accepted by a registered party:

Note: Transfers from a registered provincial division of a federal registered party are considered transfers from the registered party.

Example

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

Transfers sent by the registered party

Only the chief agent and authorized registered agents can send transfers on the registered party's behalf.

The registered party may transfer funds to the following political entities:

The registered party may transfer property or services to the following political entities:

For transfers to a candidate before or after the election period, the following should be kept in mind:

Example

The registered party purchases signs and transfers them to a candidate's campaign. The party sends a copy of the original supplier invoice to the candidate's campaign and reports the commercial value of the signs 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 party.