Charities now have more time to transition to the Canada Not-for-profit Corporations Act.
Although the Canada Not-for-profit Corporations Act replaced Part II of the Canada Corporations Act in 2011, a recent notice released by Corporations Canada has announced that corporations (including registered charities) originally created under the old legislation now have until July 31, 2017 to complete their transition to incorporate themselves under the new act.
This is an extension of the original October 17, 2014 deadline.
The notice confirms that corporations that have not completed their transition by July 31, 2017 will be dissolved and will cease to exist as legal entities. This could result in registered charities having their charitable status revoked by the CRA, and possibly facing other significant penalties.
According to the notice, charities that have not yet received a certificate of continuance from Corporations Canada will not be considered to have completed the transition to the Canada Not-for-profit Corporations Act.
For more information, contact your KPMG adviser.
Information is current to April 11, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500