Revocation of Registration
Below is a non-exhaustive list of the circumstances under which we may revoke an organization's registration.
- The organization requests the revocation.
- The organization fails to file the Information Return for Registered Charities and Other Donees (form TP-985.22-V) for a taxation year or files the return after the filing date provided for in the Taxation Act (that is, six months after the end of its taxation year).
- In a given taxation year, the organization does not incur expenditures for programs related to its objectives or does not make gifts to qualified donees that are at least equal to the disbursement quota for the year.
- A registered charity receives, during a given taxation year, a gift of property from another organization with which it is not dealing at arm's length and does not spend, before the end of the subsequent taxation year, an amount equal to the fair market value (FMV) of the property on activities related to its objectives or on gifts to qualified donees with which the organization is dealing at arm's length (this requirement does not apply to a designated gift).
- The organization has made gifts that are not in keeping with its activities, or it has made gifts to a donee that is not a qualified donee.
- One of the main purposes for which the organization has made a transaction (including a gift to another organization) is to avoid or unduly delay expenditures for its activities.
- It is reasonable to conclude that the organization has accepted a gift from another organization in a concerted action to unduly delay expenditures for the latter's activities.
- An official receipt issued by the organization contains false information or does not comply with the provisions of the Taxation Act or the Regulation respecting the Taxation Act.
- The organization does not keep registers and supporting documents, or does not keep them in an adequate manner.
An organization's registration can be revoked if:
- It is a charitable organization or a public foundation and it carries on a business that is not a related business.
- It is a registered charity and receives, during a given year, a gift of property from another charity with which it does not deal at arm's length and does not spend, before the end of the subsequent taxation year, an amount equal to the fair market value (FMV) of the property on activities related to its objectives or on gifts made to qualified donees with which it deals at arm's length (this requirement does not apply if the gift is reported by the other charity as a designated gift).
- It is a public foundation that has acquired control of a corporation.
- It is a public or private foundation that has incurred debt other than debt relating to current administrative expenses, the purchase and sale of securities or the administration of charitable activities.
- It has made a false statement in its application for registration, in circumstances amounting to culpable conduct.