RECOMMENDATION

Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act to amend the Canada Elections Act and the Income Tax Act (political financing)''.

SUMMARY

This enactment amends the Canada Elections Act to extend disclosure requirements to electoral district associations and to leadership contestants and nomination contestants of registered parties. It introduces limits on contributions that may be made to parties, candidates, electoral district associations and leadership and nomination contestants.

It imposes on registered electoral district associations, leadership contestants and nomination contestants the obligation to report to the Chief Electoral Officer on contributions received and expenses incurred.

The enactment stipulates that contributions to registered parties, candidates, registered electoral district associations, leadership contestants and nomination contestants may be made only by individuals and are subject to limits. A limited exception allows contributions of up to $1,000 to be made by corporations and trade unions, or by associations from money given by individuals, to registered associations, nomination contestants and candidates.

The enactment provides for payment of a quarterly allowance to registered political parties, based on the percentage of votes obtained by the party in the previous general election. It increases the election expenses limit for parties and the percentage of election expenses that are reimbursed and broadens the definition of election expenses to include expenditures on polling.

The enactment amends the Income Tax Act to increase by $200 each of the brackets for which a tax credit for political contributions is eligible and to allow electoral district associations to issue tax receipts.