Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/15/2012

Canada - “Education letters” no longer sent to non-profit organizations 

August 15:   The Canada Revenue Agency (CRA) is no longer sending "education letters" to certain non-profit organizations that were audited under the CRA’s risk identification project.

The CRA had undertaken a three-year “risk identification project" to audit about 1,500 non-profit organizations. By the end of the project (fall 2013), it had been expected that the CRA would have reviewed 1,440 non-profit organizations (out of the 39,000 entities claiming tax exemption).


As part of the project, the CRA sent “education letters” to certain organization that were audited, stating that they were in breach of the tax law, and urging them to make adjustments in their activities in order to comply with the law—for example, an education letter was sent to a golf course stating that it was not considered to be a non-profit organization.


In response to concerns about the education letters, the CRA stopped issuing them and posted a "clarifying" statement on its website.


Read an August 2012 report prepared by the KPMG member firm in Canada: NPO Audit Project - CRA Stops Issuing "Education Letters




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