Summary Policy

Date
September 3, 2003 (Revised September 13, 2005)

Reference Number
CSP - A23

Key Words
Annulment

Policy Statement

Under the Income Tax Act, the Minister of National Revenue can annul a registered charity's status if it was registered in error or if it has ceased to be a charity as a result of a change in law. A charity that has been annulled is deemed never to have been registered as a charity and consequently, is not subject to revocation tax. However, an official donation receipt issued by a charity prior to the annulment of its registration is valid as long as it would have otherwise been valid.

Under the Act, a charity can appeal the Minister's decision by filing a notice of objection within 90 days after the day on which the notice of annulment was mailed.

Under the Act, the CRA can provide to anyone that requests it, a copy of the entirety or any part of any letter sent by or on behalf of the Minister to the charity relating to the grounds for annulment.

References

• Confidentiality, CSP-C12.
• Objection, CSP-O05.
• Receipt, CSP-R02.
• Revocation, CSP - R12.
• Tax, CSP - T01.
• Annulment, CIL-1994-005.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, para. 149.1(15)(b), ss. 149.1(23), (24), 168(4) and para. 241(3.2)(e).