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Transcript of Video on What Qualifies as an Electoral Campaign Expense?

All of a candidate's electoral campaign expenses have to be reported to Elections Canada after the election. Some of them are subject to a limit, and some of them may be reimbursable. But what exactly qualifies as an expense? You'll find out in this module.

  1. Let's start with the obvious. The amount you pay for property or a service is an expense.
  2. Liabilities are also expenses. What does that mean? Think about a purchase you make where you agree to pay at a later date. In other words, you incur the liability to pay.
  3. Donated property or services from individuals are expenses too, even though the campaign did not pay anything for them. The amount to report as an expense and as a non-monetary contribution is the commercial value of the donated property or service. Generally, it is the amount charged in a store for an item or a service. Check out the Contribution Types module to learn more about commercial value.
    Let's say Alex, a self-employed web designer, creates the candidate's website for free. Alex normally charges $1,200 for this type of work, so the official agent reports a $1,200 non-monetary contribution from Alex and an electoral campaign expense of $1,200.
  4. In the same way, when a campaign accepts a non-monetary transfer from another political entity, the commercial value of the property or service is an electoral campaign expense. Let's see an example. The official agent accepts flyers from the registered party. The party paid $2,000 for the flyers and provides the official agent with a copy of the original supplier invoice. The official agent reports a non-monetary transfer of $2,000 from the party and an electoral campaign expense of $2,000.

To learn more, please take a look at our other modules and resources.

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