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Political Financing Handbook for Nomination Contestants and Financial Agents (EC 20182) – June 2019

Note: This handbook is to be used for contests called on or after June 13, 2019. For earlier contests, please use the December 2018 version of the handbook..

4. Transfers

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

  • What is a transfer?
  • Transfers sent to the nomination contestant
  • Transfers sent by the nomination contestant

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 its commercial value is $200 or less.

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 the original supplier 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 nomination contestant's campaign

Only the financial agent can accept transfers on the campaign's behalf. The following transfers may be accepted by the nomination contestant's campaign:

  • property or services from the registered party or from any registered association of the registered party, as long as it is offered equally to all contestants
  • property, services or funds from a candidate to themself in their capacity as a nomination contestant in respect of the same election
Example

The registered association creates a web page on its site for each nomination contestant for use during the contest period. The commercial value of creating the web pages is $150 per contestant. The association sends each contestant a copy of the original supplier invoice for $150 and reports a non-monetary transfer of $150 to each contestant. Each contestant reports a non-monetary transfer from the registered association and a nomination contest expense of $150.

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 nomination contestant's campaign

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

The following transfers may be sent by the nomination contestant's campaign:

  • funds to a candidate of the same party in the electoral district in which the nomination contest was held (after election day, this is allowed only to pay claims and loans related to the candidate's campaign)
  • funds to the registered association that held the nomination contest
  • funds to the registered party
Example

Clara won a nomination contest and has started her election campaign. Clara's financial agent from the nomination campaign transfers $3,000 to the official agent for her election campaign to help with early expenses.