Income Tax Act S. 168(2) — Revocation of Registration

Where the Minister gives notice under subsection 168(1) to a registered charity or to a registered Canadian amateur athletic association,

• (a) if the charity or association has applied to the Minister in writing for the revocation of its registration, the Minister shall, forthwith after the mailing of the notice, publish a copy of the notice in the Canada Gazette, and
• (b) in any other case, the Minister may, after the expiration of 30 days from the day of mailing of the notice, publish a copy of the notice in the Canada Gazette,

and on that publication of a copy of the notice, the registration of the charity or association is revoked.

What This Means for Your Charity

Revocation of registration under s. 168(2) becomes final when the Notice of Intention to Revoke is published in the Canada Gazette. From that point, the organization loses its charitable status, can no longer issue official donation receipts, and becomes subject to a revocation tax equal to 100% of its remaining assets.

The 30-day window between the notice and possible publication in the Gazette is critical — this is when a charity can file a Notice of Objection or take steps to remedy the compliance failure. Missing this window can result in permanent revocation. B.I.G. Charity Law Group has experience responding to CRA revocation proceedings and protecting charities' registered status. Contact us immediately if you have received a revocation notice.

Frequently Asked Questions

What is the revocation tax?

A charity that has its registration revoked is subject to a revocation tax under Part V of the Income Tax Act, equal to 100% of its remaining assets. This can effectively wind up the organization if not handled properly.

Can a charity appeal a revocation?

Yes. A charity can file a Notice of Objection with the CRA within 90 days of the revocation notice, and may ultimately appeal to the Federal Court of Appeal.