Home Resource Centre Legislation Federal Electoral Legislation Canada Elections Act Canada Elections Act

Canada Elections Act

Part 18 Division 2

General Financial Provisions

Contributions

Ineligible contributors

404. (1) No person or entity other than an individual who is a citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act shall make a contribution to a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant.

Return of contributions

(2) If a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant receives a contribution from an ineligible contributor, the chief agent of the registered party, the financial agent of the registered association, the official agent of the candidate or the financial agent of the leadership contestant or nomination contestant, as the case may be, shall, within 30 days after becoming aware of the ineligibility, return the contribution unused to the contributor or, if that is not possible, pay the amount of it or, in the case of a non-monetary contribution, an amount of money equal to its commercial value, to the Chief Electoral Officer who shall forward that amount to the Receiver General.

Provincial divisions

(3) For greater certainty, contributions to and expenses of a provincial division of a registered party are contributions to and expenses of the party. Similarly, transfers to or by the division are transfers to or by the party.

Registered agents

(4) A provincial division of a registered party may, subject to any terms and conditions that it specifies, appoint registered agents. This Act applies to those agents as if they were registered agents appointed by the party under subsection 375(1).

S.C. 2001, c. 27, s. 214; S.C. 2003, c. 19, s. 24.

404.1 [Repealed]

S.C. 2003, c. 19, s. 24; S.C. 2006, c. 9, s. 43.

Contributions – inclusions and exclusions

404.2 (1) Any money that is used for a candidate's, leadership contestant's or nomination contestant's campaign out of the candidate's or contestant's own funds is considered to be a contribution for the purposes of this Act.

Exclusion for goods and services – registered parties, registered associations and candidates

(2) A provision of goods or services is permitted and is not a contribution for the purposes of this Act if it

(a) from a registered party to an electoral district association of the party or a candidate endorsed by the party;
(b) from a registered association to the party with which it is affiliated, another registered association of the party or a candidate endorsed by the party;
(c) from a candidate endorsed by a registered party to the party or a registered association of the party; or
(d) from a candidate to himself or herself in his or her capacity as a nomination contestant in respect of the same election.

Exclusion for funds – registered parties, registered associations and candidates

(2.1) A transfer of funds is permitted and is not a contribution for the purposes of this Act if it is

(a) from a registered party to an electoral district association of the party;
(b) from a registered association to the party with which it is affiliated or another registered association of the party;
(c) from a candidate endorsed by a registered party to the party or a registered association of the party; or
(d) from a candidate to himself or herself in his or her capacity as a nomination contestant in respect of the same election.

Exclusion for funds other than trust funds – registered parties and registered associations

(2.2) A transfer of funds, other than trust funds, is permitted and is not a contribution for the purposes of this Act if it is

(a) from a registered party to a candidate endorsed by the party; or
(b) from a registered association to a candidate endorsed by the party with which the association is affiliated.

Exclusions – leadership contestants and nomination contestants

(3) A transfer of funds is permitted and is not a contribution for the purposes of this Act if it is

(a) from a leadership contestant of a registered party to the party or a registered association of the party;
(b) from a nomination contestant of a registered party to the party, the registered association of the party that held the nomination contest or the official agent of the candidate endorsed by the party in the electoral district in which the nomination contest was held; or
(c) from a registered party to a leadership contestant with funds from a directed contribution referred to in subsection 404.3(3).

(4) [Repealed]

Exception

(5) The provision, by an employer, of a paid leave of absence during an election period to an employee for the purpose of allowing the employee to be a nomination contestant or candidate is not a contribution.

Exception

(6) The payment by an individual during a year of fees of not more than $25 per year in relation to a period of not more than 5 years for membership in a registered party is not a contribution.

Contribution

(7) For greater certainty, the payment by or on behalf of an individual of fees to attend an annual, biennial or leadership convention of a particular registered party is a contribution to that party.

S.C. 2003, c. 19, s. 24; S.C. 2006, c. 9, s. 44.

Certain transfers prohibited

404.3 (1) No registered party and no electoral district association of a registered party shall provide goods or services or transfer funds to a leadership contestant or a nomination contestant, unless the goods or services are offered equally to all contestants.

Definition of "directed contribution"

(2) In this section, "directed contribution" means an amount, being all or part of a contribution made to a registered party, that the contributor requests in writing be transferred to a particular leadership contestant.

Exception

(3) Subsection (1) does not apply to an amount transferred out of a directed contribution by the registered party to the leadership contestant mentioned in the request if the party provides, with the amount transferred, a statement in the prescribed form setting out the name and address of the contributor, the amount and date of the contribution, the amount of the directed contribution, the amount that the party is transferring and the date of the transfer.

Presumption

(4) The amount of a directed contribution for transfer to a leadership contestant is deemed to be a contribution made by the contributor to the contestant.

S.C. 2003, c. 19, s. 24.

Issuance of receipts

404.4 (1) Any person who is authorized to accept contributions on behalf of a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant shall issue a receipt – of which he or she shall keep a copy – for each contribution of more than $20 that he or she accepts.

Record keeping

(2) If anonymous contributions of $20 or less per person are collected in response to a general solicitation at a meeting or fundraising event related to the affairs of a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant, the person authorized to accept those contributions must record the following:

(a) a description of the function at which the contributions were collected;
(b) the date of the function;
(c) the approximate number of people at the function; and
(d) the total amount of anonymous contributions accepted.

S.C. 2003, c. 19, s. 24; S.C. 2006, c. 9, s. 45.

Contribution limits

405. (1) No individual shall make contributions that exceed

(a) $1,000 in total in any calendar year to a particular registered party;
(a.1) $1,000 in total in any calendar year to the registered associations, nomination contestants and candidates of a particular registered party;
(b) $1,000 in total to a candidate for a particular election who is not the candidate of a registered party; and
(c) $1,000 in total to the leadership contestants in a particular leadership contest.

Exception

(2) Subsection (1) does not apply to contributions that are made by way of an unconditional, non-discretionary testamentary disposition.

Attribution of certain contributions

(3) For the purposes of subsection (1), a contribution to a person who presents himself or herself as seeking the endorsement of a particular registered party shall be treated as a contribution referred to in paragraph (1)(a.1) to a candidate of that party and a contribution to a person who presents himself or herself as seeking to be a candidate not endorsed by any registered party shall be treated as a contribution referred to in paragraph (1)(b).

Exception – certain contributions to own campaign

(4) The following contributions shall not be taken into account in calculating contributions for the purposes of subsection (1):

(a) contributions that do not exceed $1,000 in total by a nomination contestant or candidate of a registered party out of his or her own funds to his or her own campaign as a nomination contestant or candidate;
(b) contributions that do not exceed $1,000 in total by a candidate for a particular election who is not the candidate of a registered party out of his or her own funds to his or her own campaign; and
(c) contributions that do not exceed $1,000 in total by a leadership contestant in a particular leadership contest out of his or her own funds to his or her own campaign.

Deemed to be contributions

(5) For the purposes of this Act, contributions made to a leadership contestant within 18 months after a leadership contest are deemed to be contributions for that contest.

S.C. 2003, c. 19, s. 25; S.C. 2006, c. 9, s. 46.

Adjustment for inflation

405.1 (1) The inflation adjustment factor applicable to the limits established under subsection 405(1), in effect for a period of one year beginning on each April 1, is a fraction with

(a) a numerator that is the annual average Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act, for the calendar year immediately before that date, calculated on the basis of 1992 being equal to 100; and
(b) a denominator that is 119.0, which is the annual average Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act, for 2002, calculated on the basis of 1992 being equal to 100.

Adjustment

(2) The amounts set out in subsection 405(1) shall be multiplied by the inflation adjustment factor referred to in subsection (1) for any given year and the resulting amounts apply

(a) in the cases referred to in paragraphs 405(1)(a) and (a.1), during the calendar year that commences in that year;
(b) in the case referred to in paragraph 405(1)(b), with respect to an election whose writ is issued during that year; and
(c) in the case referred to in paragraph 405(1)(c), with respect to a leadership contest that begins during that year.

The resulting amounts shall be rounded to the nearest hundred dollars.

Publication

(3) Before each April 1, the Chief Electoral Officer shall cause to be published in the Canada Gazette the amounts applicable from that date.

S.C. 2003, c. 19, s. 25; S.C. 2006, c. 9, s. 47.

No circumvention of limits

405.2 (1) No person or entity shall

(a) circumvent, or attempt to circumvent, the prohibition under subsection 404(1) or a limit set out in subsection 405(1) or section 405.31; or
(b) act in collusion with another person or entity for that purpose.

No concealing of source of contribution

(2) No person or entity shall

(a) conceal, or attempt to conceal, the identity of the source of a contribution governed by this Act; or
(b) act in collusion with another person or entity for that purpose.

Prohibition – accepting excessive contributions

(3) No person who is permitted to accept contributions under this Act shall knowingly accept a contribution that exceeds a limit under this Act.

Prohibited agreements

(4) No person or entity shall enter into an agreement for the provision for payment of goods or services to a registered party or a candidate that includes a term that any individual will make a contribution, directly or indirectly, to a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant.

S.C. 2003, c. 19, s. 25; S.C. 2006, c. 9, s. 48.

Prohibition – soliciting or accepting contribution

405.21 (1) No person or entity shall solicit or accept a contribution on behalf of a registered party, registered association or candidate if the person or entity made a representation to the contributor or potential contributor that part or all of the contribution would be transferred to a person or entity, other than the registered party or a candidate, leadership contestant or electoral district association.

Prohibition – collusion

(2) No person or entity shall collude with a person or entity for the purpose of circumventing the prohibition in subsection (1).

S.C. 2004, c. 24, s. 17.

Prohibition – making indirect contributions

405.3 No individual shall make a contribution to a registered party, a registered association, a candidate or a leadership contestant or a nomination contestant that comes from money, property or the services of any person or entity that was provided to that individual for that purpose.

S.C. 2003, c. 19, s. 25; S.C. 2006, c. 9, s. 49.

Limit on cash contributions

405.31 No individual shall, in respect of each contribution made under this Part, contribute cash in an amount that exceeds $20.

S.C. 2006, c. 9, s. 49.

Return of contributions

405.4 If a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant receives a contribution made in contravention of subsection 405(1) or 405.2(4) or section 405.3 or 405.31, the chief agent of the registered party, the financial agent of the registered association, the official agent of the candidate or the financial agent of the leadership contestant or nomination contestant, as the case may be, shall, within 30 days after becoming aware of the contravention, return the contribution unused to the contributor, or, if that is not possible, pay the amount of it or, in the case of a non-monetary contribution, an amount of money equal to its commercial value, to the Chief Electoral Officer who shall forward that amount to the Receiver General.

S.C. 2003, c. 19, s. 25; S.C. 2006, c. 9, s. 49.

Expenses

Candidate's expenses for electoral campaign

406. An electoral campaign expense of a candidate is an expense reasonably incurred as an incidence of the election, including

(a) an election expense;
(b) a personal expense; and
(c) any fees of the candidate's auditor, and any costs incurred for a recount of votes cast in the candidate's electoral district, that have not been reimbursed by the Receiver General.

Election expenses

407. (1) An election expense includes any cost incurred, or non-monetary contribution received, by a registered party or a candidate, to the extent that the property or service for which the cost was incurred, or the non-monetary contribution received, is used to directly promote or oppose a registered party, its leader or a candidate during an election period.

Exclusions – certain fund-raising and nominations

(2) Expenses for a fund-raising activity and expenses to directly promote the nomination of a person as a candidate or as leader of a registered party, other than expenses referred to in paragraph (3)(a) that are related to such fund-raising and promotional activities, are not election expenses under subsection (1).

Inclusions

(3) An election expense referred to in subsection (1) includes a cost incurred for, or a non-monetary contribution in relation to,

(a) the production of advertising or promotional material and its distribution, broadcast or publication in any media or by any other means;
(b) the payment of remuneration and expenses to or on behalf of a person for their services as an official agent, registered agent or in any other capacity;
(c) securing a meeting space or the supply of light refreshments at meetings;
(d) any product or service provided by a government, a Crown corporation or any other public agency; and
(e) the conduct of election surveys or other surveys or research during an election period.

Definition of "cost incurred"

(4) In subsection (1), "cost incurred" means an expense that is incurred by a registered party or a candidate, whether it is paid or unpaid.

S.C. 2003, c. 19, s. 26.

Contributions for ticketed fund-raising functions

408. If a fund-raising activity is held for the primary purpose of soliciting a monetary contribution for a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant by way of selling a ticket, the amount of the monetary contribution received is the difference between the price of the ticket and the fair market value of what the ticket entitles the bearer to obtain.

S.C. 2003, c. 19, s. 27.

Personal expenses of a candidate

409. (1) Personal expenses of a candidate are his or her electoral campaign expenses, other than election expenses, that are reasonably incurred in relation to his or her campaign and include

(a) travel and living expenses;
(b) childcare expenses;
(c) expenses relating to the provision of care for a person with a physical or mental incapacity for whom the candidate normally provides such care; and
(d) in the case of a candidate who has a disability, additional personal expenses that are related to the disability.

Categories and maximums

(2) The Chief Electoral Officer may establish categories of personal expenses and fix maximum amounts that may be incurred for expenses in each category.

Costs related to candidate's representatives

409.1 Any expenses of a candidate that are incurred to remunerate the candidate's representatives referred to in subsection 136(1) are deemed to be personal expenses of the candidate.

S.C. 2003, c. 19, s. 27.1.

Evidence of payment – $50 or more

410. (1) Where an expense of $50 or more was incurred under this Act by or on behalf of a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant and paid by an agent or other person authorized under this Act to pay such an expense, the agent or other person must keep a copy of the invoice prepared by the person who provided the good or service to which the expense relates together with proof that it was paid.

Evidence of payment – under $50

(2) Where an expense of less than $50 was incurred and paid as described in subsection (1), the person who made the payment must keep a record of the nature of the expense together with proof that it was paid.

S.C. 2003, c. 19, s. 28.

Petty expenses

411. (1) A person may pay a petty expense incurred for office supplies, postage, courier services and other incidental expenses under the written authorization of

(a) a registered agent of a registered party, as an expense incurred by the registered party;
(b) the official agent of a candidate, as an expense incurred for the candidate's electoral campaign;
(c) an electoral district agent of a registered association, as an expense incurred by the association;
(d) a leadership campaign agent of a leadership contestant, as a leadership campaign expense; or
(e) the financial agent of a nomination contestant, as a nomination campaign expense.

Authorized maximum

(2) The written authorization referred to in subsection (1) must specify a maximum amount for the total of petty expenses that the person is authorized to pay.

Statement and evidence of payment

(3) A person who is authorized to pay a petty expense shall provide the registered agent or official agent who authorized it with the documentation referred to in section 410 within three months after

(a) in the case of a petty expense incurred on behalf of a registered party, the day on which it is incurred;
(b) in the case of a petty expense incurred on behalf of a candidate, polling day;
(c) in the case of a petty expense incurred on behalf of a registered association, the day on which it is incurred;
(d) in the case of a petty expense incurred on behalf of a leadership contestant, the day on which it is incurred; and
(e) in the case of a petty expense incurred on behalf of a nomination contestant, the day on which it is incurred.

Prohibition

(4) No person who is authorized to pay petty expenses shall, in total, pay more than the maximum amount of petty expenses that the person is authorized to pay.

S.C. 2003, c. 19, s. 29.

Publication of electoral campaign returns and election expense returns

412. (1) The Chief Electoral Officer shall, in the manner that he or she considers appropriate, publish the original election expenses returns of registered parties and electoral campaign returns of candidates and any updated versions of those returns

(a) in the case of an original return, within one year after the issue of a writ for an election; and
(b) in the case of an updated return, as soon as practicable after he or she receives it.

Publication of returns on financial transactions

(2) The Chief Electoral Officer shall, as soon as practicable after receiving them, in the manner that he or she considers appropriate, publish

(a) the returns on financial transactions of registered parties and registered associations, and any updated versions of them;
(b) the leadership campaign returns of leadership contestants and the returns in respect of contributions of leadership contestants required under subsection 435.31(1) or (2), any updated versions of them and any statements containing information with respect to contributions referred to in paragraph 435.06(2)(d); and
(c) the nomination campaign returns of nomination contestants and any updated versions of them.

Summary of return on candidates' election expenses

(3) As soon as practicable after receiving an electoral campaign return for each candidate in an electoral district, the Chief Electoral Officer shall, in the manner that he or she considers appropriate, publish a summary report or updated version of one which shall include the maximum election expenses allowed for the electoral district and, for each candidate,

(a) the total election expenses;
(b) the total personal expenses;
(c) the number of contributors and the total amount of contributions received;
(d) the name of the official agent;
(e) the name of the auditor; and
(f) if it applies, an indication that the auditor's report on a return was qualified.

Publication of returns and statements of expenses of deregistered parties

(4) As soon as practicable after receiving a return on financial transactions under subparagraph 392(a)(i) from a deregistered political party, the Chief Electoral Officer shall publish it in the manner that he or she considers appropriate.

S.C. 2003, c. 19, s. 30.

Delivery to returning officers

413. (1) The Chief Electoral Officer shall, as soon as practicable after receiving the documents referred to in subsection 451(1) for an electoral district, deliver a copy of them to the returning officer for the electoral district.

Public availability

(2) A returning officer who receives documents under subsection (1) shall, on request, make them available for six months during reasonable times for public inspection. Copies may be obtained for a fee of up to $0.25 per page.

Retention

(3) A returning officer who receives documents under subsection (1) shall retain them for three years after the six-month period mentioned in subsection (2) or any shorter period that the Chief Electoral Officer considers appropriate.

Inflation Adjustment Factor

Inflation adjustment factor

414. Before April 1 in each year, the Chief Electoral Officer shall cause to be published in the Canada Gazette an inflation adjustment factor that shall be in effect for a period of one year beginning on that date. It shall be a fraction with

(a) a numerator that is the annual average Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act, for the calendar year immediately before that date, calculated on the basis of 1992 being equal to 100; and
(b) a denominator that is 108.6, which is the annual average Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act, for 1998, calculated on the basis of 1992 being equal to 100.

Federal Electoral Legislation – Contents