Canada Revenue Agency (CRA) is responsible for enforcing the Income Tax Act as it applies to registered charities. There are several actions that CRA can take to encourage and promote compliance with the Act or to punish registered charities that do not comply. These actions range from helping registered charities understand their obligations, to revoking charitable status and applying a 100% “revocation tax” on the charity's assets.
CRA always has the right to revoke a charity’s status – and will not hesitate to do so – if it believes that a charity is intentionally disregarding the requirements of the Income Tax Act.
- tools that CRA can use
- compliance agreements, sanctions, revocation, tax
- factors that will affect CRA's decision
- failure to file the T3010
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- not filing the T3010 return
- incorrect tax receipts
- false tax receipts
- problems with books & records
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- usual penalties for first and repeat infractions
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- objecting to a CRA decision
- appealing a CRA decision
- deadlines for objecting or appealing
- legal advice
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