Bill C-293

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First Reading

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	2nd Session, 36th Parliament, 48 Elizabeth II, 1999
	The House of Commons of Canada
	BILL C-293
	An Act to amend the Income Tax Act (political activities by charities receiving public funds)
R.S., cc. 1, 2 (5th Supp.); 1994, cc. 7, 8, 13, 21, 28, 29, 38, 41; 1995, cc. 1, 3, 11, 18, 21, 38, 46; 1996, cc. 11, 21, 23; 1997, cc. 10, 12, 25, 26; 1998, cc. 19, 21, 34; 1999, cc. 10, 17, 22, 26, 31	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. The Income Tax Act* is amended by adding the following after subsection 149.1(4.1):**
Revocation of registration of registered charity	(4.2) The Minister may revoke the registration of a charity that carries out any activity described in subsection 149.1(6.11) or 149.1(6.21) if the charity has, in the year the activity is carried out or in either of the two preceding years, received public funds.
Definition of ``public funds''	(4.3) In subsections (4.2), 149.1(6.11) and 149.1(6.21), ``public funds'' means
	(a) any part of the public money within the meaning given to that expression in the Financial Administration Act, or
	(b) any part of the general revenue fund or consolidated revenue fund of a province or a fund equivalent thereto
	received as a grant, contribution or loan, but does not include any refund, allowance, rebate, subsidy or other payment received pursuant to an entitlement arising under or pursuant to an Act of the Parliament of Canada or the legislature of a province to which the recipient is automatically entitled on meeting the qualifications established in or pursuant to the Act without an exercise of discretion by any person.
	2. Section 149.1 of the Act is amended by adding the following after subsection (6.1):
Corporations and trusts disqualified	(6.11) Notwithstanding subsection (6.1), a corporation or trust that
	(a) gives direct or indirect support, by the supply of money, goods or services to, or by the endorsement of
	(i) a party that has candidates in an election for the House of Commons, the legislature of a province or a municipality, or
	(ii) a candidate in such an election, or
	(b) issues or authorizes its officers to issue statements or publications, in any form, that are political in nature and are other than a direct promotion of the charitable purposes for which the corporation or trust is formed
	shall not be considered to be a charitable foundation in a year if it has, in that year or in either of the two preceding years, received public funds.
Statements deemed inapplicable	(6.12) The Minister may deem subsection (6.11) not to apply to a statement or publication that appears to the Minister to be a minor and isolated incident in the affairs of a corporation or trust or to have been issued in error.
	3. Section 149.1 of the Act is amended by adding the following after subsection (6.2):
Organiza- tions disqualified	(6.21) Notwithstanding subsection (6.2), an organization that
	(a) gives direct or indirect support, by the supply of money, goods or services to, or by the endorsement of
	(i) a party that has candidates in an election for the House of Commons, the legislature of a province or a municipality, or
	(ii) a candidate in such an election, or
	(b) issues or authorizes its officers to issue statements or publications, in any form, that are political in nature and are other than a direct promotion of the charitable purposes for which the organization is formed
	shall not be considered to be a charitable organization in a year if it has, in that year or in either of the two preceding years, received public funds.
Statements deemed inapplicable	(6.22) The Minister may deem subsection (6.21) not to apply to a statement or publication that appears to the Minister to be a minor and isolated incident in the affairs of an organization or to have been issued in error.

Bill C-293

BILL C-293