Legislation Update

January 2020 Charity & NFP Law Update

Terrance S. Carter

Provisions of Budget Implementation Act No. 1, 2019 Now In Force, Receives Royal Assent

As of January 1, 2020, a number of provisions of Budget Implementation Act No. 1, 2019, including amendments to the Income Tax Act (Canada) (“ITA”) dealing with Canadian journalism organizations, have come into force. For more information on the new regime for Canadian journalism organizations, see Charity & NFP Law Bulletin No. 417 and Charity & NFP Law Bulletin No. 459.

Proposed Changes to Employee Stock Option Regime Delayed

On December 19, 2019, the Federal Government issued an Update indicating that the previously proposed changes to the tax treatment of employee stock options under the ITA would be delayed, as the Ministry of Finance continues to review the input received during the consultations that closed on September 16, 2019. As a result, the proposed changes did not come into force on January 1, 2020. The Update also states that more details regarding the proposed changes will be provided in Budget 2020. For more information regarding the proposed changes to the tax treatment of employee stock options and how it may affect donations to qualified donees, see the August 2019 Charity & NFP Law Update.

2020 Budget Consultations in Ontario

On December 18, 2019, the Ontario Government launched its 2020 Budget Consultations, seeking input on “how the government can improve quality of life for people across the province, while also attracting business investment, creating jobs and improving critical public services such as healthcare and education.” The consultations will be open until Feb 11, 2020.

The 2020 Pre-Budget Consultations by the Standing Committee on Finance and Economic Affairs of the Legislative Assembly of Ontario were held between January 17 and 24, 2020.

Ontario Regulations under the Connecting Care Act, 2019

Effective December 2, 2019, new Ontario Regulation 376/19 under the Connecting Care Act, 2019 (“CCA”) came into effect, prescribing the provision by Ontario Health, the new provincial agency created to manage the delivery of healthcare in Ontario, of certain shared services, such as human resource management and finance and administration, to the local health integration networks (or “LHINs”), approved agencies under the Home Care and Community Service Act, 1994, and placement co-ordinators designated under the Long-Term Care Homes Act, 2007. Additional information is available on the Ontario Health website.

Also, effective January 1, 2020, new Ontario Regulation 390/19 under the CCA prescribed Ontario Telemedicine Network as an organization which may be subject to a transfer order pursuant to subsection 40(1) of the CAA. Additional information about transfer orders issued by Ontario Health is also available on the Ontario Health website. .

Alberta Senate Election Act

Bill 13, Alberta Senate Election Act, which received Royal Assent on July 18, 2019, amended the Election Finances and Contributions Disclosure Act by introducing new provisions dealing with restrictions on advertising contributions and expenses, including a prohibition on registered charities from making senatorial selection advertising contributions. The amendments also provide restrictions on the disposition of advertising account funds and require that funds remaining in an advertising account, as defined under the Act, either be donated to a registered charity, returned to the third party contributors if they can be identified or, as applicable, paid to the Chief Electoral Officer for deposit into the General Revenue Fund.

Nova Scotia’s Plastic Bags Reduction Act

On October 30, 2019, Nova Scotia’s Plastic Bags Reduction Act received Royal Assent and will come into force one year from that date. This legislation prohibits businesses from providing plastic checkout bags. The definition of “business” under the Act provides that it “does not include a charity.” The regulations under this Act will prescribe the amount of the fines payable by any person who contravenes the Act or the regulations.

Yukon’s New Liquor Act

On November 27, 2019, Yukon’s New Liquor Act received Royal Assent. Part 5 of this new Act contains a number of special provisions for how registered charities and not-for-profits may apply for the different classes of permits for the sale of liquor or the sale of tickets that may be exchanged for liquor. On the date set by proclamation of the Commissioner in Executive Council, this legislation will repeal the current Liquor Act, RSY 2002, c 140.

Read the January 2020 Issue

The CRA's Guidance on Journalism: Clarifying Tax Credits, QCJOs and RJOs
Advisory Committee on the Charitable Sector Holds December Meetings
Legislation Update
-   Provisions of Budget Implementation Act No. 1, 2019 Now In Force
-   Proposed Changes to Employee Stock Option Regime Delayed
-   2020 Budget Consultations in Ontario
-   Ontario Regulations under the Connecting Care Act, 2019
-   Alberta Senate Election Act
-   Nova Scotia's Plastic Bags Reduction Act
-   Yukon's New Liquor Act
Corporate Update
-   ONCA Coming into Force Delayed
-   Updated Policies on Corrections of Articles or a Certificate for Business and Not-for-Profit Corporations
-   Corporations Canada Makes Changes for Online Services to Not-for-Profits
-   Certain Amendments to Ontario's Co-operative Corporations Act in Force
-   New Brunswick's Cooperatives Act Proclaimed in Force
Voluntary Association's Constitution and By-Laws Found to be Contractual
Tax Court Decision on Split Receipting and Donative Intent Upheld on Appeal
Federal Court of Appeal Holds that Atheism is not a Religion
CRA Technical Interpretation Regarding Loanbacks by a Qualified Donee
CRA Technical Interpretation on Prescribed Rates and Undue Benefits
Termination Clause Found to be Void and Unenforceable by the Court of Appeal
The Federal Court Establishes the Test for a Site-blocking Order
Alberta Court of Appeal Rules that Charter Applies to Freedom of Expression by Students on University Campus
Anti-Terrorism/Money Laundering Update
-   Global Fragility Act of 2019
-   EU Renews its Terrorist List
-   OSFI Ceases Publishing Lists of Designated Persons
Charities Legislation & Commentary, 2020 Edition Now Available