Relief with Regard to Expenditures
In certain situations, an organization can ask us to grant relief with regard to expenditures made in the course of its activities, so that the organization can meet its disbursement quota.
Under exceptional circumstances, an organization may ask us to consider that a certain amount has been spent by the organization in a given taxation year for charitable activities the organization carried on. To make this request, the organization must duly complete and submit form TP-985.2.2-V, Determination of an Amount Deemed Spent.
By filing form TP-985.2.2-V, an organization that is unable to meet its disbursement quota for the year because of special or unusual circumstances beyond its control can avoid having its registration revoked.
In addition, it will not be required to pay a special tax for a disbursement shortfall or, at the very least, the amount of the special tax will be reduced if the organization is:
If an organization needs to accumulate property for a specific purpose (for example, to carry out a major project), it can ask us for authorization to do so.
The value of the property accumulated with our authorization is not included in the calculation of the disbursement quota (line 100 of Schedule A or line 200 of Schedule B, as applicable).
The organization must state in the request for authorization:
- the organization's objective;
- the period during which the property is to be accumulated; and
- the dates of the project.
Once authorization has been obtained, the organization must complete lines 70 to 75 of the information return for each taxation year in which property is accumulated.