The Canada Revenue Agency (CRA) has issued for consultation the draft guidance document CG-027, Public policy dialogue and development activities by charities. This document explains how the CRA expects to administer changes to the Income Tax Act that permit a charity to carry on unlimited public policy dialogue and development activities in furtherance of a stated charitable purpose. This includes guidelines on what is direct and indirect support or opposition to a political party or candidate for public office.
The publication of the guidance follows Parliament passing legislation that changes the rules governing charities’ political activities. These changes were included in Budget Implementation Act, 2018, No. 2, which received Royal Assent on December 13, 2018.
The CRA is accepting comments on the guidance document until April 23, 2019. All feedback received will be considered to inform the publication of a final version of the guidance.