Frequently Asked Questions

Elections Canada: Frequently Asked Questions

Election financing

· Registration and voting · Elections · Elections Canada · Election financing ·
· Members of Parliament · Political entities including third parties · General questions ·

 



The Canada Elections Act provides for a number of consequences for the failure to file a candidate's election campaign return, as required by the Act:

However, the Act also contemplates that there may be circumstances which preclude the filing of a candidate's election campaign return within the original statutory timelines and provides the means by which extensions can be sought, first from the Chief Electoral Officer and then from a judge (ss. 458 and 459). The Act also provides an opportunity in specified circumstances for a court to provide relief when a particular document cannot be filed because it has been destroyed, or to provide relief where a failure to file happened without the knowledge of the candidate or where the candidate exercised all due diligence to avoid the failure (ss. 461 and 462).



A leadership contestant is not exempted from the rules of the Canada Elections Act by dropping out of the race. A leadership contestant remains a contestant until he or she has complied with all requirements of the Act with respect to that leadership contest (see definition of leadership contestant in section 2 of the Act). Thus, until the financial obligations referred to in sections 435.3 to 435.47 have been met, an individual who withdraws from a leadership contest is subject to all applicable rules contained in the Act, including those dealing with eligibility, limits and disclosure, the need to file and update a final leadership campaign contest return, the disposal of any surplus funds, and the reimbursement of outstanding debts. Where a campaign has incurred a loan, a contestant’s withdrawal from the race does not affect the nature of the loan as a campaign debt that must be paid off with campaign funds. Those funds are subject to the requirements of the Act.

Similarly, a contestant who withdraws cannot transfer or otherwise move the contributions he or she has received to another contestant. Any money raised by selling campaign assets must remain within the campaign’s account for the payment of debts or reimbursement of loans incurred by the campaign, or to satisfy the surplus disposal rules of the Act.

A leadership contestant who withdraws from a contest must file a signed statement with the Chief Electoral Officer indicating his or her withdrawal (section 435.16). Once this is done, the only obligation from which the contestant is relieved is to provide weekly returns in the last four weeks of the campaign, as required by section 435.31. The contestant must still file the final comprehensive return on funding and expenses required under section 435.3.



A person or entity who knowingly funds speaking engagements or other opportunities for a leader of a registered party to promote or otherwise benefit the party, directly or indirectly, makes a contribution to the party that is subject to the rules of the Canada Elections Act, including the rules respecting eligibility, caps and disclosure of contributions.
(See information sheets 1 to 4, 9 and 10.)

Similarly, any organization or club that, intending to benefit a particular registered party, provides a free opportunity for a party representative to speak to its members will also be making a contribution subject to the rules of the Act.

Each situation must be considered on the basis of its particular facts to determine whether a contribution has been made and, if so, whether it is compliant with the rules set out in the Act.

Back to top



If the leadership contestant plans his or her affairs to combine two purposes – one related to the contest and one not – so that both can be achieved in the same trip, the costs should be apportioned reasonably between the events, depending on the event to which each cost might most reasonably be attributed.

Back to top



If, during a leadership contest, an event is used, or may reasonably be perceived to be used, to promote the campaign of the contestant or to oppose the campaign of another, the full event is a leadership campaign expense.

Leadership contestants should discuss the apportionment of costs with their auditor and should be ready to defend such apportionment should there be a complaint or in the context of a review by Elections Canada.

Back to top



The backgrounder entitled "Registration and Political Financing of Leadership Contestants"(see www.elections.ca > General Information > Backgrounders) states that:

All contributions to a leadership contestant are subject to the rules of the Canada Elections Act respecting eligibility, caps and disclosure. A leadership contribution is any gift given to a person – including before the formal start of a contest – to help the person become the leader of a registered party, or to cover specific leadership campaign expenses. (The only exception is a gift provided before the formal start of the contest that is given expressly, specifically and solely for a purpose that will be completed before the contest begins.)

At issue is whether gifts for a purpose that is completed before the contest begins may still be received after the start of the contest.

Generally speaking, once a leadership contest is started and once a person has become a leadership contestant, the presumption will be very strong that funds received from contributors are for the purpose of funding the leadership contest as opposed to activities that took place before the start of that contest.

As indicated in the passage of the backgrounder cited above, to rebut the presumption, a leadership contestant should be able to show that the gift was given expressly, specifically and solely for a purpose that was completed before the beginning of the contest. The backgrounder also states:

Any gift given to a person for some purpose other than a leadership campaign, but with the added proviso that the person can "keep the change" for the leadership campaign, is considered as a contribution to the campaign in its entirety.

Back to top



Service Provided Free of Charge to Campaign

Volunteer labour – labour provided free of charge – to a leadership campaign is not a contribution under the Canada Elections Act. However, not all labour that is provided free of charge to a leadership contest constitutes "volunteer labour." There are two exceptions to this general rule.

The Canada Elections Act excludes from the definition of "volunteer labour" the provision of a free service by a self-employed person, if the service is one for which the person normally charges.

Also, for a free service to constitute "volunteer labour" as that term is defined in section 2 of the Canada Elections Act, it must be provided free of charge by a person outside his or her working hours. The person cannot be paid for his or her services by any employer or other person.

Where a service does not constitute volunteer labour because the person is self-employed or because the labour is being paid for by an employer or other person, it is a non-monetary contribution from the self-employed person or the person who is actually paying for the labour (as the case may be), valued at the commercial value of the service. As a non-monetary contribution, it is subject to the eligibility, limit and disclosure rules of the Act respecting contributions. Similarly, the commercial value of the service must be reported as an expense of the leadership campaign.

Corporations, unions and unregistered associations cannot make contributions to leadership contestants. Therefore these entities cannot permit their employees to work for a contestant at their expense, nor can they pay to have the work done by a self-employed person.

Service Paid for by Campaign

Labour that is paid for by a campaign at commercial value is not a contribution to the campaign but constitutes an expense to the campaign.

If the labour is paid for by the campaign at less than commercial value, the difference between the commercial value of the service and the amount that is paid by the campaign constitutes a non-monetary contribution by the person to the campaign and an expense of the campaign. The amount actually paid by the campaign also constitutes an expense.

Back to top



Any person or entity who:

with the intent of benefiting the party will have made a contribution to the registered party that would be subject to the rules of the Canada Elections Act. This applies to a person or entity acting in any capacity, including as a sponsor.

As a corollary principle, any arrangement entered into by any person or entity, including the purchase of visibility by a corporation or other entity or any other commercial arrangement, that circumvents the eligibility, caps or disclosure rules of the Canada Elections Act respecting contributions would be contrary to section 405.2 of the Act and would constitute an offence.

The same principle would apply to a person or entity who pays for a party reception or a dinner at a party conference or other event or who holds a reception or similar event for the benefit of the party coincidentally with a party conference or event, either at the party’s request or with the party’s agreement.

Back to top



Any expense that is used, or would reasonably be perceived as being used, by a leadership campaign to promote the leadership contestant, or oppose the campaign of any other contestant, during a leadership contest constitutes a leadership campaign expense. See the definition of "leadership campaign expense" in section 2 of the Canada Elections Act.

The specific facts in each case would have to be taken into account to determine whether a particular expense constitutes a leadership campaign expense. All relevant facts would have to be considered.

Back to top



Yes. The contribution caps respecting contributions to candidates who are endorsed by a registered party work on a per calendar year basis and apply to the total of all contributions given to the registered party, all of its registered electoral district associations, all of its candidates and all of its nomination contestants in that calendar year.

The contribution caps respecting contributions to independent candidates, and other candidates who are not endorsed by a registered party, work on a per election basis but include only the contributions given to that particular candidate.

Furthermore, once their candidatures are confirmed by a returning officer during an election, candidates who are endorsed by a registered party can receive transfers of goods, services and funds from their registered party and its registered associations. Transfers cannot be made to candidates who are not endorsed by a registered party.

Full details respecting current contribution limits under the Canada Elections Act can be found in the chart "Limits Subject to the Inflation Adjustment Factor" on the Elections Canada Web site at www.elections.ca under Election Financing > Current Limits > Limits on Contributions.

Any person who believes that the contribution caps should operate in a different manner should contact Parliament for changes to the Canada Elections Act.

The Chief Electoral Officer has no authority under the Canada Elections Act to alter these rules.

Additional Information

For more information respecting contribution eligibility and caps, including special rules respecting eligibility, controlled corporations, branches and locals of unions, and special "double up" provisions respecting corporate, union and unincorporated association contributions to losing nomination contestants, or where two elections are called in one year, see the following information sheets on the Elections Canada Web site at www.elections.ca under Electoral Law and Policy.

Information Sheet 2: Limits on Contributions by Individuals Under the Canada Elections Act

Information Sheet 3: Limits on Contributions by Corporations and Trade Unions

Information Sheet 4: Contributions by Unincorporated Associations Under the Canada Elections Act

Information Sheet 5: Transfers Between Affiliated Political Entities

Back to top



Yes.

The same principles apply to seasonal cards issued and receptions held during an election as to any other greeting cards issued or receptions held during an election.

Christmas and Other Holiday Greeting Cards and Election Expenses

Christmas and other holiday season greeting cards that are issued to the electorate during an election period constitute an election expense for registered parties or candidates under section 407 of the Canada Elections Act if the cards directly promote or oppose a registered party, its leader or a candidate, either expressly or implicitly. In determining whether something directly promotes a registered party, its leader or a candidate, one should note that in subsection 350(2) of the Act, in the context of defining "election advertising expenses," the concept of promoting or opposing a candidate in a given electoral district is defined as including naming the candidate, showing the likeness of the candidate, identifying the candidate by his or her political affiliation or taking a position on an issue with which the candidate is associated.

Christmas and Other Holiday Greeting Cards and Election Advertising

Similarly, Christmas and other holiday season greeting cards sent out by a registered party, candidate or third party during an election can also constitute election advertising as described in section 319 of the Act. Generally, a greeting card that is transmitted during an election to any person or persons with whom the sender does not have some common cause or connection, and is intended to influence how an elector might vote, by promoting or opposing a registered party or the election of a candidate, including a message that takes a position on an issue with which a registered party or candidate is associated, is "election advertising," and must comply with the requirements of the Act respecting election advertising.

Cards in Transit at the Drop of a Writ

A Christmas or other holiday season greeting card that is in transit at the issue of a writ will not be considered to have been issued during the election period if, at the time of the issue of the writ, the candidate does not have the ability to stop its delivery.

Christmas and Other Holiday Season Receptions and Parties and Election Expenses

Christmas and other holiday season receptions and parties held by registered parties or candidates – including through their electoral district associations – during an election constitute an election expense under section 407 of the Act if the receptions directly promote or oppose a registered party, its leader or a candidate, either expressly or implicitly, in the same way as Christmas and other holiday greeting cards as discussed above. Parties or receptions held to thank workers for their efforts on behalf of the party or candidate, or that would induce them to continue to work for or support the party or candidate, will be considered as promoting the party or candidate.

Back to top



Section 470 of the Canada Elections Act deals with this situation.

Section 470 of the Canada Elections Act makes the financial transactions rules of Part 18 of the Act respecting electoral campaign expenses apply to the campaign expenses of a candidate in a cancelled election.

Because these rules differ in some respects from the rules respecting elections which run to their completion, candidates in elections which they believe might be cancelled and who wish to plan for that potential eventuality should familiarize themselves with the following rights and obligations respecting cancelled by-elections.

Must Have Been a Candidate in the Cancelled Election

These rules apply to persons who were candidates in the cancelled election – i.e. their nomination papers had been accepted by a returning officer prior to the cancellation of the election.

Persons whose nominations were not confirmed prior to the cancellation of the election never formally became candidates and are not treated as such. These persons are not required to report and are not eligible for any election expense or personal expense reimbursement.

Financial Reporting

If a person was a candidate in the cancelled election, his or her campaign transactions for the cancelled election will have to be reported in accordance with section 451 of the Act and, ultimately, any surplus will have to be disposed of and reported as required by sections 471 and following of the Act.

For the purposes of that electoral campaign return, polling day is deemed to be the date that the Chief Electoral Officer publishes the notice of the withdrawal of the writ in the Canada Gazette.

Reimbursement of Election Expenses and Personal Expenses

A candidate's election expenses and personal expenses are not reimbursed in the same way following a cancelled election as they are following an election which is completed.

The rules respecting eligibility for reimbursements, and the amounts payable as reimbursements, following a cancelled election are as follows:

i. Eligibility for reimbursement

A candidate in a cancelled election will only be eligible for reimbursement of election or personal expenses in the following circumstances:

ii. Amount of reimbursement

An eligible candidate would qualify for a reimbursement amount that is the lesser of:

General elections cancelled due to flood, fire or other disaster

The same rules will apply to a general election which is cancelled due to flood, fire or other disaster.

Text of Section 470

470. (1) This Part applies, with the following modifications, to electoral campaign expenses of candidates in an electoral district in which a writ is withdrawn under section 59 or deemed to be withdrawn under section 551:

(a) the election is deemed to have been held on a polling day that is the day of publication of the notice of withdrawal in the Canada Gazette;

(b) each candidate is deemed to have obtained 10% of the votes that would have been validly cast at that deemed election; and

(c) on receipt of a certificate referred to in section 464 or 465, the Receiver General shall pay out of the Consolidated Revenue Fund to the candidate's official agent – or may alternatively pay to the person designated by the agent – the lesser of

(i) the amount that is the election expenses limit provided for in section 440, and

(ii) the amount by which the candidate's election expenses and personal expenses, as disclosed in his or her electoral campaign return, exceeds the total value of the contributions that the candidate received.

(2) Despite subsection (1), a candidate is not entitled to reimbursement for election expenses or personal expenses if

(a) the writ is withdrawn or deemed to be withdrawn before the closing day for nominations; or

(b) the election expenses, as disclosed in the candidate's electoral campaign return, are not more than the value of contributions that the candidate received.

Back to top



Yes, a candidate in one district may invite candidates from other districts to come and campaign on his or her behalf. Expenses incurred in such campaigning constitute election expenses of the candidate who is being assisted by this campaigning.

Thus, when a candidate in an electoral district invites candidates from other districts to assist him or her by campaigning on his or her behalf, any expenses incurred by the assisting candidate in that campaigning should be paid as election expenses by the campaign of the assisted candidate. The payment of these expenses by anyone else, including the campaign of the assisting candidate, will amount to a non-monetary contribution by the person paying the expense to the assisted candidate.

The situation is different where a candidate is asked by his or her registered party to campaign in another district on behalf of the party, rather than on behalf of another candidate. In that case, although the expenses constitute election expenses of the party, they may be paid by either the party or by the assisting candidate. The party may pay the expenses directly as election expenses of the party according to the rules respecting the payment of election expenses. The assisting candidate may also pay the expenses. Where the assisting candidate pays the expenses, the payment should be reported as a transfer of goods and services by the assisting candidate to the party. They cannot be reported as election expenses of the assisting candidate.

Back to top



An allowance paid to a candidate from his or her campaign account during an election will be recognized as an electoral campaign expense (but not an election expense) where:

  1. There is a written agreement respecting the payment of the allowance between the candidate and the official agent at the beginning of the campaign.
     
  2. The allowance provided for by the agreement must be reasonable and can be paid only to replace revenue forsaken by the candidate in order to run as a candidate during the election.
     
  3. The allowance provided for by the agreement cannot exceed the amount of revenue forsaken by the candidate.
     
  4. The allowance may be paid only for the election period and only for the time during which the person was a candidate.
     
  5. The allowance provided for by the agreement must be paid with the same regularity as the forsaken revenue would have been paid.

The rules respecting unpaid claims will apply to any portion of the allowance which is not paid as provided in the agreement.

A similar approach may be taken with respect to allowances paid to a nomination contestant respecting a nomination contest held during an election period. Such allowances will be considered to be nomination campaign expenses. As all nomination campaign expenses (other than personal expenses) are subject to the nomination campaign expenses limits the payment of any such nomination campaign allowance to a nomination contestant will fall under that contestant's nomination campaign expenses limit.

Back to top



Registered political parties

Registered political parties must submit each year to the Chief Electoral Officer an annual fiscal period return, due within six months of the end of the fiscal period (June 30).

Registered political parties that qualify for a quarterly allowance must submit to the Chief Electoral Officer a quarterly return, due 30 days after the end of each quarter (April 30, July 30, October 30 and December 30). This requirement comes into effect on January 1, 2005.

After a general election, each registered political party must also submit an audited report on its election expenses within six months of election day.

Registered electoral district associations

Registered electoral district associations – also called riding or constituency associations – must submit an annual fiscal period return within five months of the fiscal year-end (that is, by May 31 annually). For more details, see information sheet 7 on Registered Electoral District Associations.

Nomination contestants

Nomination contestants must file a report on their contributions and expenses within four months of the selection date of the nomination contest. If the selection date of a nomination contest falls within an election period or the 30 days before it, the contestants can file their returns within four months after election day. For more details, see information sheet 18 on Nomination Contests: Obligations of Nomination Contestants.

Leadership contestants

Leadership contestants must submit six financial reports:

For more details, see information sheet 11 on Leadership Contests: Financial Reporting Obligations for Leadership Contestants.

Candidates

Candidates must submit audited returns of their election expenses and contributions within four months of election day.

Registered third parties

Registered third parties – of which there were 49 for the last general election – must report on their election advertising expenses within four months of election day.

For all these reports, if a deadline date falls on a weekend or holiday the due date is the next business day.

Back to top



New contribution limits have been set for individuals, corporations, trade unions and unincorporated associations.

Individuals

As a citizen or permanent resident of Canada, you can give:

The first $5,000 an individual contributes to his or her own campaign as a candidate, nomination contestant or leadership contestant will be exempted from the individual contribution limits listed above. The net result is that a candidate, nomination contestant or leadership contestant can contribute $10,000* in total to his or her own campaign. For more details, see information sheet 2 on Limits on Contributions by Individuals under the Canada Elections Act.

Corporations and trade unions

A corporation or trade union that operates in Canada:

For more details, see information sheet 3 on Limits on Contributions by Corporations and Trade Unions.

Unincorporated associations

An unincorporated association (such as a community association or a club):

For more details, see information sheet 4 on Contributions by Unincorporated Associations under the Canada Elections Act.

* Click here to access the limit in effect.

Back to top



Click here for detailed financial information on political parties and candidates.

Back to top



You can get an official income tax receipt for a monetary contribution from:

Any person authorized to accept political contributions must issue a receipt for each contribution over $25.

For the 2004 tax year, the Income Tax Act allows the following income tax credits for political contributions by taxpayers, supported by official receipts:

The credits are deducted directly from the income tax to be paid.

Contributions to leadership and nomination contestants are not eligible for a tax credit.

Back to top



Under the Canada Elections Act, in order to be an electoral campaign expense of a candidate the expense must be reasonably incurred as an incident of the election.

An expense incurred during an election will only be considered to be an electoral campaign expense to the extent that the expense can be seen as reasonably serving some purpose relating to the election. To the extent that an expense can be seen as reasonably serving some other purpose it will not be considered an electoral campaign expense (i.e. if a candidate purchased a car for his or her travel needs during the election, what percentage of the car cost can be seen as reasonably serving transportation needs and what percentage can be seen as either being unreasonable or, put another way, reasonably seen as serving some other purpose?).

Reasonably serving some purpose relating to the election includes actually being used in that way as well as being kept in inventory for use as needs be to reasonably serve some purpose.

An expense incurred prior to the election will only be considered to be an electoral campaign expense to the extent that it is incurred for use in an election campaign, is not consumed prior to the election and is subsequently brought into the campaign to reasonably serve some purpose relating to the election either during or after that election.

An expense incurred after an election will only be considered an electoral campaign expense to the extent that it can be seen as reasonably serving some purpose relating to the election.

On the basis of the above, money, property or services given to a person, who may at the same time also be collecting contributions as a candidate for purposes which would not be considered to be electoral campaign expenses, are not considered to be contributions under the Canada Elections Act. They are not subject to the provisions of the Act respecting contribution eligibility, caps or disclosure.

Money, property or services ostensibly given to a potential candidate for non-electoral campaign purposes will, nonetheless, be considered to be a contribution if any part of that money, property or service was intended by the giver to be usable by the potential candidate for an electoral campaign expense (multiple use contribution). Provided that the giver intended that the candidate could use some or all of the given money, property or services, or the product or service for which money was given for electoral campaign purposes, as the candidate or nomination contestant might decide the whole gift will be considered to be a contribution.

In cases of multiple use contributions, the rules respecting the disposal of surplus may then operate on a practical basis to preclude the use of that money, property or service outside of the election to the extent that any portion of the expense relating to expenses which would not be recognized as electoral campaign expenses will not be taken into account in calculating the candidate's surplus. Expenses that will not be recognized as an electoral campaign expense will create a shortfall in the amount of surplus to be disposed of that would need to be repaid so that a proper disposition takes place.

Outside of the Canada Elections Act, in the event that the person receiving such money may be an MP, depending on the particular circumstances of the case, the ability of that person to receive that money may nonetheless be regulated by the Conflict of Interest and Post-Employment Code; the proposed Code of Conduct for Parliamentarians; the Parliament of Canada Act; or the Criminal Code.

A similar principle applies to money, property or services given to individuals who may also be potential nomination contestants (using the concept of nomination campaign expenses rather than electoral campaign expenses) or leadership contestants (using the concept of leadership campaign expenses rather than electoral campaign expenses).

The situation is not the same for registered political parties or registered electoral district associations. The Canada Elections Act regulates, to one degree or another, all of the activities of the continuing political entities – the registered parties and the registered electoral district associations. All of their activities are considered to be electoral in nature and all money, property or services given to them for these activities are considered to be contributions. This is because the continuing entities are recognized to exist and to act solely for political purposes.

Back to top



Under the Canada Elections Act, an election expense includes any cost incurred or non-monetary contribution received by a registered party or a candidate, to the extent that the property or service for which the cost was incurred, or the non-monetary contribution received, is used directly to promote or oppose a registered party, its leader or a candidate during an election period.

For specific questions, click here for their handbooks.

Back to top



Candidates

A candidate's election expenses limit is the maximum amount of money that he or she is allowed to spend in an election campaign. The amount will vary from one electoral district to another, based on a formula set out in the Canada Elections Act. The Chief Electoral Officer calculates the limit for each electoral district, as follows:

Step 1: Spending limits are initially based on the number of names appearing on the preliminary lists of electors or on the revised lists of electors for the electoral district, whichever is greater. The Chief Electoral Officer publishes in the Canada Gazette not later than the 31st day before election day the number of names on the preliminary lists of electors, and no later than the 7th day before election day the number of names on the revised lists of electors. The limit is then calculated at:

Step 2: The Act provides for an adjustment for candidates running in electoral districts where there are fewer electors than the national average. For the financial calculation in step 1, the number of electors is deemed to be halfway between the number on the preliminary lists for the electoral district and the average number on all preliminary lists.

Step 3: The Act also provides an adjustment for geographically large electoral districts. If the number of electors per square kilometre of the electoral district is less than 10, the candidate's spending limit is increased by the lesser of $0.31 per square kilometre or 25% of the amount calculated in step 1.

Step 4: The limits are then adjusted by the inflation adjustment factor in effect on the day of the issue of the writs for the election.

Registered parties

The maximum amount that is allowed for the election expenses of a registered party for an election is calculated in two steps:

Step 1: Multiply $0.70 by the number of names on the preliminary lists of electors for electoral districts in which the registered party has endorsed a candidate or by the number of names on the revised lists of electors for those electoral districts, whichever is greater.

Step 2: Multiply the result of step 1 by the inflation adjustment factor that is in effect on the day of the issue of the writs for the election.

Back to top



A non-monetary contribution is the commercial value of a service (other than volunteer labour), or of property or the use of property or money, to the extent that they are provided without charge or at less than their commercial value. The commercial value is the lowest amount charged at the time it was provided for the same kind and quality of property or service or for the same use of property or money.

Examples of non-monetary contributions include a donated computer, a discount that is not normally available to customers, donated office supplies and furniture.

The commercial value of property or a service is deemed to be nil if it is provided by a person who is not in the business of providing that property or those services, and the amount charged is $200 or less.

Back to top



The Canada Elections Act permits certain transfers of money and the provision of certain goods and services between specified political entities of the same registered party without those transfers being considered contributions. These are known generically as transfers.

Transfers can include:

For a summary of who can make what transfers, see information sheet 5 on Transfers Between Affiliated Political Entities.

Back to top