Charities - CRA Starts New “Education” Audits | KPMG | CA
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Charities - CRA Starts New “Education” Audits

Charities - CRA Starts New “Education” Audits

The CRA has initiated a new educational program for charities.

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In the coming months, charities may receive a CRA letter informing them that they have been selected for a Charities Education Program (CEP) visit. According to the CRA, the CEP is meant to help charities comply with their tax obligations under the Act and avoid common errors. As part of a CEP site visit, the CRA will review the charity's books and records and ask questions about its purposes and activities. The CRA says that a CEP visit does not preclude the possibility that the charity could be audited in the future. The CRA says it plans to conduct 500 visits per year.

What will CEP visits involve?
During a CEP visit, a Charity Education Officer from the CRA will:

  • Ask the charity questions about its books and records as well as its purposes and activities
  • Provide the charity with information on its registration obligations, on how to file accurate information returns, and on the issuance of official donation receipts
  • Review the charity's books and records, give feedback on their accuracy and completeness, and advise on how to address potential issues
  • Provide a summary of their findings and recommendations, which the charity must sign.

How is a charity selected for a CEP visit?
A charity may be selected for a CEP visit for a number of reasons, including the following:

  • It is newly registered
  • Certain information has been flagged from its Form T3010, Registered Charity Information Return
  • It has fallen into common areas of non-compliance, such as receipting and reporting issues.

For more information, contact your KPMG adviser.
 

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