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Political Financing Handbook for Registered Parties and Chief Agents (EC 20231) – December 2023

2. Registration

This chapter presents information for political parties on the registration process and changes in party status. It covers the following topics:

  • Why become a registered political party?
  • Merging registered parties
  • Voluntary and involuntary deregistration of a registered party
  • Roles and appointments–party leader, party officers, chief agent, registered agents and auditor

Why become a registered political party?

A political party is an organization with the following as one of its fundamental purposes:
to participate in public affairs by endorsing one or more of its members as candidates and supporting their election.

There are several advantages to registering a political party with Elections Canada. A party has to register if it would like to:

  • have the party's name appear on ballots under the names of its confirmed candidates
  • issue tax receipts
  • be eligible for a reimbursement of paid election expenses and paid accessibility expenses after a general election
  • obtain an allocated amount of free broadcasting time and purchase an allocated amount of prime broadcasting time in a general election
  • obtain voters lists from Elections Canada for electoral districts where it ran candidates in the last general election
  • transfer funds, property or services to other political entities and receive transfers from them (see the transfer rules later in this chapter)
  • accept surplus funds from a candidate, a leadership contestant or a nomination contestant
  • register electoral district associations (maximum of one in each electoral district)
  • sit on the Advisory Committee of Political Parties, which provides Elections Canada with advice and recommendations relating to elections and political financing

Steps to registering a political party

There are three steps to registering a political party: applying for registration, becoming an eligible party and becoming a registered party.

Step 1: Applying for registration

To apply for registration, the party has to fill out the General Form–Political Party and send it to Elections Canada.

The form explains what information and signatures to include, notably:

  • the party's full name and, optionally, its logo and abbreviation or short-form name (which may be subject to a maximum length set by the Chief Electoral Officer)
  • the party leader's contact information and a copy of the party's resolution to appoint the leader
  • contact information and signed consent to act in that role for the following positions:
    • at least three party officers other than the party leader
    • the chief agent
    • the auditor
  • names and addresses of at least 250 electors and their declarations in the prescribed form that they are members of the party and support the party's application for registration
  • a statement of the party's fundamental purpose
  • the address of the party's office where records are kept and to which communications may be addressed
  • the party's policy for the protection of personal information that it collects and the address of the exact web page where the policy is published on the party's website

Step 2: Becoming an eligible party

Elections Canada will review the application for registration and inform the party leader of whether or not the party is eligible for registration.

A political party becomes an eligible party if:

  • the party's name, short-form name, abbreviation or logo does not so resemble another eligible or registered party's name, short-form name, abbreviation or logo as to be confused with it
  • the party's name does not include the word "independent"
  • the party has submitted at least 250 membership declarations and Elections Canada has confirmed them with the members
  • the party has at least three officers in addition to its leader
  • the party has appointed a chief agent and an auditor
  • the party's policy for the protection of personal information is published on its website and contains the required information
  • Elections Canada is satisfied that the party has provided all the information required and that the information is accurate

If the party did not meet all requirements, Elections Canada will inform the party leader of which requirements were not met.

Note: It is advisable to provide contact information and declarations of more than 250 party members to ensure that there are at least 250 valid declarations after the information is verified.

Step 3: Becoming a registered party

An eligible party becomes a registered party during a general election or by-election if:

  • it has at least one candidate whose nomination has been confirmed for the election, and
  • its complete application for registration was made at least 60 days before the election was called

Note: An eligible party that makes an application after the 60-day deadline cannot become registered and have its name on ballots for that election. But it remains an eligible party and can become registered at the next general election or by-election.

Elections Canada will check whether an eligible party has any confirmed candidates after nominations close. It then notifies the party leader that:

  • the party has been registered in the Registry of Political Parties, or
  • the party has lost its eligibility for registration because it has no confirmed candidates (in the case of a general election only)

A party remains registered as long as it continues to meet the requirements for staying registered, including mandatory reporting. The party does not need to reapply at each election.

Note: For election financing purposes, an eligible party that becomes registered is deemed to have been registered from the first day of the pre-election period, if any, or from the day the general election or by-election was called.

Eligible parties–reporting requirements and activities

An eligible party cannot become registered until a general election or a by-election is called. In the meantime, it must submit certain reports to maintain its eligibility and may conduct certain political financing activities.

Maintaining eligible party status

To keep its eligible status, an eligible party must provide:

  • a statement confirming the validity of the party's registry information and a declaration by the party leader regarding the party's fundamental purpose to participate in public affairs, by June 30 each year
  • any document required to inform Elections Canada about a change in the party's registry information or any new appointment within 30 days of the event
  • within 10 days after a general election is called, a statement confirming the validity of the party's registry information and a list of the party's designated representatives for the purpose of endorsing candidates in the election
  • the names, addresses and declarations of 250 party members every third year (next due in 2025)

Political financing activities of an eligible party

An eligible party can accept contributions and incur expenses without the same restrictions as a registered party, but it cannot issue tax receipts.

When an election is expected or is under way, the eligible party should keep in mind that some rules will apply retroactively to its contributions and expenses. This is because, once registered, the party is deemed to have been registered:

  • from the day the general election or by-election was called, or
  • from the first day of the pre-election period of a fixed-date general election

Notably, the effect on contributions and expenses is as follows:

  • Contributions received as of the party's deemed date of registration can only have come from individuals who are Canadian citizens or permanent residents, subject to the contribution limit.
  • The party is subject to the expenses limit for both the pre-election period (for a fixed-date general election) and the election period.

Note: Contributions that an eligible party receives before it is entered in the Registry of Political Parties are not eligible for a tax receipt retroactively, even if they are subject to the contribution rules.

Registered parties–reporting requirements soon after registration

In the months after a political party is registered, it must establish its first fiscal period to determine when its first annual financial return is due. It must also submit a statement of its assets and liabilities.

Establishing the first fiscal period after registration

A registered party's fiscal year must be a calendar year (January 1 to December 31). But its first fiscal period after registration may be longer or shorter than one year.

Depending on the party's effective date of registration (when it was entered in the Registry of Political Parties), the length of a registered party's first fiscal period must be modified to end on December 31. It may not be less than 6 months or more than 18 months.

The first annual financial return will be due either in the first or second year after registration.

Examples
  1. A party is registered on June 30, 2023. Its first fiscal period will end on December 31, 2023, six months after registration. Its first annual financial return will be due on June 30, 2024.
  2. A party is registered on July 1, 2023. Its first fiscal period will end on December 31, 2024, 18 months after registration. Its first annual financial return will be due on June 30, 2025.

Submitting the party's statement of assets and liabilities

Within six months after the party's effective date of registration, it must submit the Registered Party's Statement of Assets and Liabilities, accompanied by an auditor's report. The statement lists the party's assets and liabilities as of the day before the effective date of registration.

Registering provincial or territorial divisions of the party

Registered parties may choose to register provincial or territorial divisions as part of their organizational structure.

A provincial or territorial division is a division of the registered party for which Elections Canada has received the following information:

  • the name of the party, the division and the province or territory
  • the address of the party office where records are kept
  • the names and addresses of the chief executive officer, other officers of the division and any registered agent appointed by the division
  • a declaration signed by the party leader
  • updates about changes to registry information

The General Form–Provincial and Territorial Divisions of a Registered Party can be used to register these divisions.

Note: Financial transactions such as contributions, expenses and transfers of these divisions are financial transactions of the registered party.

Merging registered parties

Two or more registered parties may apply to Elections Canada to become a single registered party.

Applying to merge two or more registered parties

An application for a merger can be submitted at any time, except during an election period or 30 days before it. The application for a merger must include:

  • certifications from the leaders of the merging parties
  • a resolution from each of the merging parties, approving the proposed merger
  • the information normally required to register a party, except for the names, addresses and signed declarations of 250 members

Elections Canada updates the Registry of Political Parties if the following conditions are met:

  • The application for a merger was not made in an election period or 30 days before it.
  • The merged party is eligible for registration as defined in the Canada Elections Act.
  • The merging parties have discharged their reporting obligations.

Elections Canada then notifies the officers of the merging parties in writing that the parties have been merged and publishes the information about the merger in the Canada Gazette.

Note: The effective date of the merger is the day on which Elections Canada amends the Registry of Political Parties.

Consequences for registered parties and registered associations involved in the merger

The following happens when two or more registered parties merge.

Registered parties

The following happens when two or more registered parties merge:

  • The merged party is the successor of each merging party.
  • The merged party becomes a registered party.
  • The assets of each merging party belong to the merged party.
  • The merged party is responsible for the liabilities of each merging party.
  • The merged party is responsible for the obligations of each merging party to report financial transactions and election expenses for any period before the merger.
  • The merged party replaces a merging party in any legal proceedings.
  • Any decision involving a merging party may be enforced by or against the merged party.
Registered associations
  • Any registered association of a merging party is deregistered. It may transfer funds or property to the merged party or to a registered association of the merged party within six months after the merger.
  • Electoral district associations of the merged party must register with Elections Canada.

Obligations after a merger

Within six months after the date of the merger, the merging parties must provide:

  • financial returns not provided for any earlier fiscal period
  • auditor's reports not provided for any earlier fiscal period

Within six months after the date of the merger, the merged party must provide:

  • a statement of assets and liabilities as of the date of the merger, accompanied by an auditor's report and a declaration from the chief agent

Voluntary and involuntary deregistration of a registered party

Voluntary deregistration

A registered party can ask to be deregistered. The request must be made in writing and signed by the leader and two officers of the party.

Note: Elections Canada cannot process a request for voluntary deregistration during the election period of a general election.

Involuntary deregistration

There are many reasons that a registered party may be involuntarily deregistered:

  • The registered party fails to endorse a candidate in a general election.
  • A court orders Elections Canada to deregister the party because the party, its chief agent,
    a registered agent or one of its officers has been convicted of an offence referred to in subsection 501(3) of the Canada Elections Act.
  • A court orders Elections Canada to deregister the party, after a judicial application by the Commissioner of Canada Elections, if the court is satisfied that the party does not have as one of its fundamental purposes to participate in public affairs by endorsing one or more of its members as candidates and supporting their election.
  • The registered party fails to submit reports or financial returns (see below).
  • The registered party fails to meet its obligations with respect to officers or members (see below).

Failure to submit reports or financial returns: risk of deregistration

Elections Canada may deregister a registered party if it fails to provide:

  • the party's policy for the protection of personal information and the web page address on the party's website where it is published (the party must have a policy at all times)
  • the Registered Party's Statement of Assets and Liabilities, accompanied by an auditor's report, within six months after the effective date of registration
  • a statement confirming the validity of its registry information or a report of changes by June 30 each year
  • a declaration by the party leader, submitted by June 30 each year, regarding the party's fundamental purpose to participate in public affairs
  • any document required to inform Elections Canada about a change in the party's registry information or any new appointment within 30 days of the event
  • within 10 days after a general election is called, a statement confirming the validity of the party's registry information and a list of the party's designated representatives for the purpose of endorsing candidates in the election
  • the names, addresses and declarations of 250 party members every third year (next due in 2025)
  • the party's annual financial return, accompanied by an auditor's report
  • the party's expenses return after a general election, accompanied by an auditor's report
  • a nomination contest report within 30 days after the contest selection date
  • a leadership contest report before or immediately after the contest starts

If a registered party fails in its reporting obligations, Elections Canada will notify the party and its officers in writing of the failure. It will ask the party to:

  • within five days of receiving a notice about confirming the registry information during an election period, send the required statement
  • within 30 days of receiving a notice about a reporting omission, submit the required report, or
  • satisfy Elections Canada that the omission was not the result of negligence or a lack of good faith

If the party does not correct the omission but instead satisfies Elections Canada that the omission was not the result of negligence or a lack of good faith, Elections Canada may:

  • exempt the party in whole or in part from complying with the obligation, or
  • specify a new deadline to comply with the obligation

Note: Failure to comply with notices from Elections Canada may lead to deregistration of the party.

Failure to meet obligations with respect to officers and members: risk of deregistration

If a registered party fails to perform its obligations with respect to officers or members, Elections Canada will notify the party of the failure. It will ask the party to:

  • within 60 days after receiving a notice about party officers, appoint at least three officers in addition to the leader
  • within 90 days after receiving a notice about party members, submit the names, addresses and declarations of 250 party members

If Elections Canada is satisfied that the registered party made reasonable efforts to comply with the request, it may grant an extension to comply.

Note: Failure to comply with notices from Elections Canada may lead to deregistration of the party.

Deregistration process

If a registered party is deregistered:

  • Elections Canada sends a notice to the party and its registered associations with the effective date of deregistration.
  • The effective date of deregistration will be at least 15 days after the notice date.
  • The notice is published on Elections Canada's website and in the Canada Gazette.

Note: If a registered party is deregistered, its registered associations are also deregistered.

Requirements and restrictions after deregistration

After the effective date of deregistration, a political party is no longer allowed to:

  • issue tax receipts
  • transfer funds, property or services to a candidate endorsed by the registered party
  • accept surplus funds from a candidate, leadership contestant or nomination contestant

The party remains responsible for filing financial returns within six months after deregistration. The following returns must be filed:

  • the return for the fiscal period in which the party became deregistered
  • the return for any other fiscal period for which the party has not filed a return
  • any election expenses return not yet filed
  • any auditor's reports, as required

Roles and appointments within the party

Role and appointment process–party leader

Party leader

Role summary
  • The party leader is responsible for certifying these forms:
    • General Form–Political Party when the party applies to register, when there is a change in the party's registry information and to confirm its registry information annually
    • General Form–Provincial and Territorial Divisions of a Registered Party
  • If a registered association of the party wishes to issue tax receipts, the party leader signs the authorization that allows the association to issue the receipts.
  • The party leader co-signs the application for deregistration of the party or one of the party's registered associations.
  • The party leader co-signs the application for a merger with one or more other registered parties.
Who is eligible? Yes / No
Canadian citizen who is at least 18 years old and who lives or has lived in Canada Yes
Appointment process
  • The party has to appoint a leader before applying for registration.
  • If for any reason the leader is not able to continue in that role, the party must select a new leader.
  • A registered party can choose to hold a leadership contest to appoint a leader. Before or immediately after the contest starts, the chief agent must notify Elections Canada using the General Form–Registered Party Leadership Contest.
  • Whether or not there was a contest, the party must notify Elections Canada of a new appointment within 30 days after the appointment. The notice must include a copy of the party resolution appointing the new leader, certified by the new leader and another party officer.
  • Use the General Form–Political Party to report this appointment and updates.

Role and appointment process–party officers

Party officers

Role summary
  • A party officer co-signs the party's resolution to appoint a leader.
  • Party officers co-sign the application for deregistration of the party or one of the party's registered associations.
Who is eligible? Yes / No
Canadian citizen who is at least 18 years old and who lives or has lived in Canada Yes
Appointment process
  • The party has to appoint at least three officers, in addition to the party leader, before applying for registration.
  • Party officers have to sign a statement consenting to act in that capacity.
  • If the party's chief agent or registered agents are individuals, they can also serve as party officers, but they must be officially appointed into both roles.
  • If for any reason an officer is no longer able to continue in that role, and the number of officers including the party leader is less than four, the party must appoint a new officer within 30 days. The party must notify Elections Canada of the new appointment within 30 days after the appointment. The notice has to include a signed consent from the new officer.
  • An officer who steps down from their role should notify the political party so that it can appoint a replacement.
  • Use the General Form–Political Party to report these appointments and updates.

Role and appointment process–chief agent

Party's chief agent

Role summary
  • The chief agent is responsible for administering the party's financial transactions and reporting those transactions to Elections Canada as required by the Canada Elections Act.
  • It is strongly recommended that the chief agent put in place controls to monitor election expenses so that the spending limit is not exceeded. For example, the chief agent could:
    • introduce a purchase requisition form that requires every purchase to be authorized by the chief agent
    • create a campaign budget and insist on being kept informed of financial transactions
    • intervene with campaign workers to address non-compliance in a timely fashion
  • The chief agent may apply to Elections Canada for a written opinion, guideline or interpretation note on political financing rules in the Canada Elections Act.
  • After deregistration, the chief agent's role continues until the party fulfills all financial reporting requirements.
Who is eligible? Yes / No
Canadian citizen who is at least 18 years old and who lives or has lived in Canada Yes
Corporation incorporated under the laws of Canada or a province Yes
Candidate No
Election officer or member of the staff of a returning officer No
Undischarged bankrupt No
Auditor appointed as required by the Canada Elections Act No
Person who does not have the full capacity to enter into contracts in the province or territory in which the person ordinarily resides (e.g. a dissolved corporation or a person with a diminished mental capacity) No
Appointment process
  • The party has to appoint a chief agent before applying for registration.
  • The chief agent has to sign a statement consenting to act in that capacity.
  • If for any reason the chief agent is no longer able to continue in that role, the party must appoint a new chief agent without delay and notify Elections Canada within 30 days. The notice has to include a signed consent from the new chief agent.
  • The party may have only one chief agent at a time.
  • A chief agent who steps down from their role should notify the political party so that it can appoint a replacement.
  • Use the General Form–Political Party to report this appointment and updates.

Role and appointment process–registered agents

Party's registered agents

Role summary
  • Registered agents may be authorized by the registered party to do one or more of the following:
    • accept contributions or loans on the registered party's behalf
    • accept or send transfers on the registered party's behalf
    • issue contribution receipts, including tax receipts
    • incur or pay the registered party's expenses
Who is eligible?* Yes / No
Canadian citizen who is at least 18 years old and who lives or has lived in Canada Yes
Corporation incorporated under the laws of Canada or a province Yes
Candidate No
Election officer or member of the staff of a returning officer No
Undischarged bankrupt No
Auditor appointed as required by the Canada Elections Act No
Person who does not have the full capacity to enter into contracts in the province or territory in which the person ordinarily resides (e.g. a dissolved corporation or a person with a diminished mental capacity) No
Appointment process*
  • The appointment of registered agents is optional.
  • The registered party may appoint any number of registered agents at any time.
  • Within 30 days after appointing one or more registered agents, the registered party has to send Elections Canada:
    • the names and addresses of the new agents
    • the terms and conditions of the appointments (as a best practice, the party may wish to set limits on the amounts registered agents are authorized to incur)
    • certification of the appointments by the party leader or the chief agent
  • An eligible party that has appointed agents must send the above information within 30 days after being informed that it is eligible for registration.
  • Use the General Form–Political Party to report these appointments and updates.

*The same eligibility criteria and appointment process apply to the agents of an eligible party, except where otherwise noted.

Role and appointment process–auditor

Party's auditor

Role summary
  • In accordance with generally accepted auditing standards, the auditor has to examine the party's financial records and give an opinion in a report as to whether the party's return presents fairly the information contained in the financial records on which it is based.
  • An auditor's report is required for the party's statement of assets and liabilities on registration, its annual financial return and its general election return.
  • The auditor has a right to access all documents of the party, and may require the chief agent to provide any information or explanation that is necessary to enable the auditor to prepare the report.
  • When preparing a report on the Registered Party's General Election Return, the auditor must include a statement if it appears that the registered party and the chief agent have not complied with sections 363 to 384 and sections 385 to 445 of the Canada Elections Act.
Who is eligible? Yes / No
Person who is a member in good standing of a corporation, an association or an institute of provincially accredited professional accountants (CPA designation)* Yes
Partnership of which every partner is a member in good standing of a corporation, an association or an institute of provincially accredited professional accountants (CPA designation)* Yes
Any candidate or official agent No
Election officer or member of the staff of a returning officer No
Chief agent of a registered party or an eligible party No
Officer of a registered party or an eligible party No
Registered agent of a registered party No
Financial agent or electoral district agent of a registered association No
Leadership contestant, their financial agent or a leadership campaign agent No
Nomination contestant or their financial agent No
Financial agent of a registered third party No
Appointment process
  • The party has to appoint an auditor before applying for registration.
  • The auditor has to sign a statement consenting to act in that capacity.
  • If for any reason the auditor is no longer able to continue in that role, the party must appoint a new auditor without delay and notify Elections Canada within 30 days. The notice has to include a signed consent from the new auditor.
  • An auditor who steps down from their role should notify the political party so that it can appoint a replacement.
  • Use the General Form–Political Party to report this appointment and updates.

*Provincially or territorially legislated accounting bodies may require auditors to meet other professional criteria in order to perform this role, such as holding a public accounting licence in the province or territory where the political entity is based. This should be discussed with the auditor before the appointment.