Income Tax Act provisions related to revocation of registration and annulments

If your organization received a Notice of intention to revoke a charity’s registration or a Notice of annulment, review the Income Tax Act provisions below.

This will help you better understand:

• the revocation process
• your responsibilities after revocation or annulment
• your rights to objection and appeal

Qualified donees

Definitions

• Charitable foundation, charitable organization, and qualified donee, among others: See subsection 149.1(1) Definitions

Reasons for revocations

• Charitable organizations: See subsection 149.1(2)
• Public foundations: See subsection 149.1(3)
• Private foundations: See subsection 149.1(4)
• Registered charities: See subsection 149.1(4.1)
• Canadian amateur athletic associations: See subsection 149.1(4.2)

Annulments

Notice of intention to annul registration

• See subsection 149.1(23) Annulment of registration

How receipts issued by an annulled charity are treated

• See subsection 149.1(24) Receipts issued before annulment

Revocation of registration of certain organizations and associations

Notice of intention to revoke registration

• See subsection 168(1) Notice of intention to revoke registration

Communication of revocation details

• See subsection 168(2) Revocation of Registration

Objection and appeals

Filing an objection

• See subsection 168(4) Objection to proposal or designation

Appeals

• When a revoked organization can file an appeal: See subsection 172(3) Appeal from refusal to register, revocation of registration, etc.
• Filing an appeal to the Federal Court of Appeal: See subsection 180(1) Appeals to Federal Court of Appeal

Tax and penalties in respect of qualified donees

How revocation changes your organization’s year-end date

• See subsection 188(1) Deemed year-end on notice of revocation

Tax liability imposed on a charity upon revocation

• See subsection 188(1.1) Revocation tax

Winding-up period, including when it begins and ends

• See subsection 188(1.2) Winding-up period

Definition of an eligible donee in respect of a particular charity

• See subsection 188(1.3) Eligible donee

Definition of an eligible donee in respect of a particular Canadian amateur athletic association:

• See subsection 188(1.4) Eligible donee

What a shared liability is with respect to revocation tax

• See subsection 188(2) Shared liability – revocation tax

When revocation tax may not be applied

• See subsection 188(2.1) Non-application of revocation tax

When a transfer of property tax may be applied

• See subsection 188(3) Transfer of property tax

When a transfer of property tax may not be applied

• See subsection 188(3.1) Non-application of subsection (3)

What a joint and several, or solidary, liability is with respect to the transfer of property tax

• See subsection 188(4) Joint and several, or solidary, liability – tax transfer

Definitions

• Net asset amount, net value: See subsection 188(5) Definitions

Responsibility of the taxpayer to file a return and pay tax

• See subsection 189(6) Taxpayer to file return and pay tax

Responsibility of a revoked charity to file returns

• See subsection 189(6.1) Revoked charity to file returns

How a revocation tax liability may be reduced

• See subsection 189(6.2) Reduction of revocation tax liability

How a penalty may be reduced

• See subsection 189(6.3) Reduction of liability for penalties

Privileges granted to the Minister to assess a taxpayer for any amount they are liable to pay

• See subsection 189(7) Minister may assess

Related links

• Revoking registered status
• Regulating charities
• Compliance within the charitable sector