CRA Outlines Consequences of Not Filing T3010

As the hustle and bustle of the holiday season quickly approaches, so too does the fiscal year end for many charities. This, in turn, starts the clock for the filing of a charity’s annual T3010 Information Return, which is due six months after the end of the charity’s fiscal year.

The Canada Revenue Agency (“CRA”) has recently released a document, “Consequences of non-filing” which reminds charities that their registered status can be revoked if they fail to file the T3010 on time. The consequences of revocation for the charity are:

  • it no longer qualifies for exemption from income tax as a registered charity;
  • it cannot issue official donation receipts; and
  • it may be subject to a tax equivalent to the full value of its remaining assets (revocation tax).

“Consequences of non-filing” also sets out the steps that the CRA will take to remind charities of the filing requirement, to give them the chance to avoid revocation. However, once the registration is revoked, the charity will have to pay a non-refundable $500 penalty, and re-apply for registration. There is no guarantee that the charity’s application will be successful, however, and it must not be assumed that registration will be granted simply because the organization was granted charitable status before. The new CRA document is available here: [:link href=”http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rtrn/cnsqncs-eng.html”:].

In light of the seriousness of the consequences of non-filing, CCCC reminds its members to be pro-active and diligent in ensuring they file their T3010 on time (for example, a permanent, annually recurring agenda item at the Board meeting that immediately precedes the filing deadline, wherein the person responsible for the T3010 confirms it has been filed). CCCC has developed a [:link href=”http://www.cra-arc.gc.ca/chrts-gvng/chrts/lst-eng.html” txt=”CRA-authorized”:] fillable, saveable T3010 form to assist its members in completing the T3010, and also provides a T3010 reminder service. For more information, see: [:link href=”https://www.cccc.org/members_t3010″:].