12. New Agenda Items for discussion only

[Lyle Craver]

This thread is reserved for proposals from the floor - no vote will be helding at this meeting on these items but many of these proposals are revised and put forward as motions for the quarterly meetings.

[Ilia Bluvshtein]

The OCA has not filed tax return, at least for the last 7 years. My understanding is the OCA does not need to file tax return as we are a subsidiary nonprofit organization and our parent organization - CFC - covers for us.
Please comment on this.

[Vladimir Drkulec]

The OCA has not filed tax return, at least for the last 7 years. My understanding is the OCA does not need to file tax return as we are a subsidiary nonprofit organization and our parent organization - CFC - covers for us.
Please comment on this.

I have deleted an identical post by Ilia and a reply by myself at Ilia's request in the outgoing AGM.

Does the OCA not have a separate corporate entity that is registered in Ontario? Identifying this is the first step in resolving the issue.

I would simply file the back tax returns. I don't think this is a big problem. You are a non-profit so there will be no taxes due. They could deregister you for not filing the required financial statements. I am not familiar with the tax law with respect to Ontario provincially registered non-profits if that is indeed how you are registered.

I don't think that you can say that the CFC covers for you as I doubt we are knowledgeable on your financials, particularly the expenditures. If we covered for Ontario we would have to do it for every province and we are just not experts in the rules for every province. There may be rules which exempt organizations below a certain level of revenues. I would start by looking at this website link below and following the relevant links:

https://www.ontario.ca/page/rules-not-profit-and-charitable-corporations


(https://www.ontario.ca/page/rules-not-profit-and-charitable-corporations)

[Lyle Craver]

As former BC Chess Federation Treasurer I had to file annual reports to Victoria which were mostly about contact info for the directors. (Which I have done within the past 6 months for a non-chess non-profit) I don't think it's accurate to say the "CFC covers for you" since it's a federal organization with provincial affiliates but unless your budget is considerably higher than I believe it to be you shouldn't need to file corporate income tax returns.

It's not as if there's a fiduciary legal relationship between the CFC and the affiliates after all.

[Ilia Bluvshtein]

I have deleted an identical post by Ilia and a reply by myself at Ilia's request in the outgoing AGM.

Does the OCA not have a separate corporate entity that is registered in Ontario? Identifying this is the first step in resolving the issue.

I would simply file the back tax returns. I don't think this is a big problem. You are a non-profit so there will be no taxes due. They could deregister you for not filing the required financial statements. I am not familiar with the tax law with respect to Ontario provincially registered non-profits if that is indeed how you are registered.

I don't think that you can say that the CFC covers for you as I doubt we are knowledgeable on your financials, particularly the expenditures. If we covered for Ontario we would have to do it for every province and we are just not experts in the rules for every province. There may be rules which exempt organizations below a certain level of revenues. I would start by looking at this website link below and following the relevant links:

https://www.ontario.ca/page/rules-not-profit-and-charitable-corporations


(https://www.ontario.ca/page/rules-not-profit-and-charitable-corporations)

I checked archives. The OCA was incorporated in 2003 and looks like it has never filed tax returns.
What is the experience of other provinces?

[ian findlay]

I checked archives. The OCA was incorporated in 2003 and looks like it has never filed tax returns.
What is the experience of other provinces?

The ACA has never filed federal tax returns, but we do submit our financial statements to a provincial Corporate Registry as well as file reports to the Alberta Gaming and Licensing Commission (AGLC).

[Paul Leblanc]

The BC Chess Federation does not file tax returns either. The only document we file with any government is the annual report to the Registry of BC Societies listing the executive voted in at the AGM. Our revenues and expenditures are so small that I doubt anyone cares.

[Lyle Craver]

Glad to hear it. From your description it seems little has changed from when I was BCCF Treasurer. :)

(I am the filing officer for another BC non-profit and Paul accurately describes BC's requirements which are basically date of AGM, board of directors including contact information but not financials)

Things are MUCH more detailed if a provincial association goes for charitable status - not sure if any currently do though the federal government (during the Harper era) greatly tightened the requirements as did most of the provinces) My understanding is that AUDITED annual financials are required and unless you get an accountant willing to make a contribution in the form of a free audit that rules out the CFC since the cost of an audit starts at around $5000 and goes up from there.

[Christopher Mallon]

The OCA has not filed tax return, at least for the last 7 years. My understanding is the OCA does not need to file tax return as we are a subsidiary nonprofit organization and our parent organization - CFC - covers for us.
Please comment on this.


Ilia,

The OCA is not a subsidiary organization but is fully incorporated as an Ontario Not-for-profit corporation. Reporting rules have likely changed a lot since I was involved. It's definitely not something you'd want to give up as it allows you (or anyone under the OCA, with permission) to apply for Trillium grants.

[Ilia Bluvshtein]

Vlad, Lyle, Ian, Paul, and Chris - thank you for sharing.