CRA Compliance

This article provides an overview of the necessary forms and documents that nonprofit organizations are required to submit to the government on an annual basis.

For nonprofits registered in Ontario, it is mandatory to submit a corporate annual return and other applicable forms on an annual basis. Neglecting this obligation could lead to the dissolution of your nonprofit by the Ontario government. Additionally, if your organization is a registered charity with the Canada Revenue Agency, not filing the required forms could lead to the loss of its charitable status.

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Completing corporate annual returns

What specific information is required to be provided to the Ontario Government on an annual basis?

Ontario nonprofits must fulfill the requirement of submitting a corporate annual return annually. The corporate annual return form encompasses the following information:

• Administrative details, such as your name and email address. It is important to note that this information will not be disclosed to the public.
• The names of newly elected or appointed directors or officers, along with the corresponding dates of their appointment.
• The dates when any directors or officers ceased to hold their positions (the term "cease" refers to the date they stopped being directors or officers).
• The name and address of the individual accountable for verifying the accuracy of the submitted information.

Please be informed that if you have previously reported any alterations to the directors and officers through a notice of change, you have the option to select the "no changes" option. Nonetheless, it is crucial to note that despite selecting this option, it remains obligatory to file the corporate annual return.

In addition, registered charities are also required to submit an Annual Charity Information Return (commonly known as the T3010) to the Canada Revenue Agency.

Is it necessary to inform the government about any changes made to our articles of incorporation?

Absolutely.

In order to report any changes made to their articles of incorporation, nonprofits are required to submit "articles of amendment" to the Government of Ontario. For detailed guidance on the process of filing articles of amendment, please consult the appropriate page designated for this purpose.

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Is it necessary for us to notify the government about any alterations to our directors or officers?

Certainly.

Nonprofits are required to submit a Notice of Change to the Ontario Government within a period of 15 days after:

• Relocation of the nonprofit’s head office or registered office to a new location.
• Departure of a director or appointment of a new director.
• Changes in the top 5 senior officers.

The Notice of Change can be submitted through various methods, including the Ontario Business Registry, mailing it directly, or employing the services of a third-party service provider.

Is it necessary for us to notify the government in the event of changing our bylaws?

If your organization is a charity, it is required to submit the newly enacted by-laws to the Canada Revenue Agency once they have been approved by the board of directors and confirmed by the charity's members.

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What are the ramifications of not filing on time?

Failure to submit the required filings within the designated timeframe may result in penalties or fines imposed by the government on the nonprofit organization or its directors. Additionally, if a nonprofit's information is not up to date, it may face limitations, such as being unable to initiate a court case.

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Filing tax returns

Is it necessary for us to submit a tax return or fulfill tax obligations?

Occasionally, certain conditions apply.

The Ontario government provides clarification regarding the tax obligations of nonprofits. In general, nonprofit corporations are required to submit a corporate income tax return to the Canada Revenue Agency, irrespective of whether they are liable for taxation. Furthermore, some organizations may have an additional requirement to complete a Non-Profit Organization (NPO) Information Return, also known as Form T1044. To determine if this requirement is applicable to your organization and to obtain guidance on completing the T1044, please refer to the relevant guidelines.

What happens if we have neglected to file tax returns for many years?

If you have failed to submit your income tax return, annual information return, or corporate annual return for multiple years, it is advisable to seek the assistance of a lawyer or accountant with expertise in nonprofit law. Noncompliance with filing requirements can result in penalties imposed on organizations. While it may be possible to avoid these penalties in certain circumstances, it is recommended to consult a legal or tax professional to address this situation appropriately.

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