I-3 - Taxation Act

Section 985.1.2 Disposition versions

2023-03-15

985.1.2. The organization to which paragraph g of section 985.1 refers is an organization, whether or not incorporated, that, at a particular time, meets the following conditions:

(a)  all its resources are devoted to charitable activities carried on by the organization itself or to making qualifying disbursements;

(a.1)  the organization is constituted and operated exclusively for charitable purposes;

(b)  no part of its income is payable to, or is otherwise available for, the personal benefit of any proprietor, member, shareholder, trustee or settlor of the organization;

(c)  more than 50% of its directors, trustees, officers or like officials deal at arm’s length with each other and with

i.  each of the other directors, trustees, officers and like officials of the organization,

ii.  each person described in subparagraph i or ii of paragraph d, and

iii.  each member of a group of persons, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996, who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described in subparagraph i of paragraph d; and

(d)  the organization is not, at the particular time, and would not at the particular time be, if the organization were a corporation, controlled, directly or indirectly in any manner whatever,

i.  by a person, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996,

(1)  who immediately after the particular time, has contributed to the organization amounts that are, in total, greater than 50% of the capital of the organization immediately after the particular time, and

(2)  who immediately after the person’s last contribution at or before the particular time, had contributed to the organization amounts that were, in total, greater than 50% of the capital of the organization immediately after the making of that last contribution, or

ii.  by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph i.

1986, c. 15, s. 155; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 49; 2000, c. 5, s. 293; 2009, c. 5, s. 403; 2021, c. 18, s. 77; 2023, c. 2, s. 25.

2021-06-04

985.1.2. The organization to which paragraph g of section 985.1 refers is an organization, whether or not incorporated, that, at a particular time, meets the following conditions:

(a)  all its resources are devoted to charitable activities carried on by the organization itself;

(a.1)  the organization is constituted and operated exclusively for charitable purposes;

(b)  no part of its income is payable to, or is otherwise available for, the personal benefit of any proprietor, member, shareholder, trustee or settlor of the organization;

(c)  more than 50% of its directors, trustees, officers or like officials deal at arm’s length with each other and with

i.  each of the other directors, trustees, officers and like officials of the organization,

ii.  each person described in subparagraph i or ii of paragraph d, and

iii.  each member of a group of persons, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996, who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described in subparagraph i of paragraph d; and

(d)  the organization is not, at the particular time, and would not at the particular time be, if the organization were a corporation, controlled, directly or indirectly in any manner whatever,

i.  by a person, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996,

(1)  who immediately after the particular time, has contributed to the organization amounts that are, in total, greater than 50% of the capital of the organization immediately after the particular time, and

(2)  who immediately after the person’s last contribution at or before the particular time, had contributed to the organization amounts that were, in total, greater than 50% of the capital of the organization immediately after the making of that last contribution, or

ii.  by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph i.

1986, c. 15, s. 155; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 49; 2000, c. 5, s. 293; 2009, c. 5, s. 403; 2021, c. 18, s. 77.

2009-05-15

985.1.2. The organization to which paragraph g of section 985.1 refers is an organization, whether or not incorporated, that, at a particular time, meets the following conditions:

(a)  all its resources are devoted to charitable activities carried on by the organization itself;

(b)  no part of its income is payable to, or is otherwise available for, the personal benefit of any proprietor, member, shareholder, trustee or settlor of the organization;

(c)  more than 50% of its directors, trustees, officers or like officials deal at arm’s length with each other and with

i.  each of the other directors, trustees, officers and like officials of the organization,

ii.  each person described in subparagraph i or ii of paragraph d, and

iii.  each member of a group of persons, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996, who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described in subparagraph i of paragraph d; and

(d)  the organization is not, at the particular time, and would not at the particular time be, if the organization were a corporation, controlled, directly or indirectly in any manner whatever,

i.  by a person, other than the State, Her Majesty in right of Canada or Her Majesty in right of a province (other than Québec), a municipality, another registered charity that is not a private foundation, and any club, society or association described in section 996,

(1)  who immediately after the particular time, has contributed to the organization amounts that are, in total, greater than 50% of the capital of the organization immediately after the particular time, and

(2)  who immediately after the person’s last contribution at or before the particular time, had contributed to the organization amounts that were, in total, greater than 50% of the capital of the organization immediately after the making of that last contribution, or

ii.  by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph i.

1986, c. 15, s. 155; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 49; 2000, c. 5, s. 293; 2009, c. 5, s. 403.

2006-03-01

985.1.2. The organization contemplated in paragraph g of section 985.1 is an organization, whether or not incorporated,

(a)  all the resources of which are devoted to charitable activities carried on by the organization itself;

(b)  no part of the income of which is payable to, or is otherwise available for, the personal benefit of any proprietor, member, shareholder, trustee or settlor thereof;

(c)  more than 50% of the directors, officers, trustees or like officials of which deal with each other and with each of the other directors, officers, trustees or officials at arm’s length, and

(d)  where the organization has been designated to be a private foundation or public foundation pursuant to section 985.4.1, as it read before being repealed, or section 985.4.3, has applied for registration under subsection 1 of section 985.5 after 15 February 1984 or has begun after that date to be registered pursuant to subsection 2 of section 985.5, not more than 50% of the capital of which has been contributed or otherwise paid in to the organization by one person or members of a group of persons who do not deal with each other at arm’s length.

The second paragraph of section 985.1.1 also applies for the purposes of subparagraph d of the first paragraph.

1986, c. 15, s. 155; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 49; 2000, c. 5, s. 293.