| 24(1) | File No. 900429 |
| G. Thornley | |
| (613) 957-2101 |
Attention: 19(1)
June 19, 1990
Dear Sirs:
Re: Non-profit corporations
This is in reply to your letter of April 6, 1990 requesting our opinion on the non-profit status and the filing requirements of a particular incorporated association formed to promote the needs of a particular industry. We apologize for the delay in responding.
Our Comments
Questions relating tax considerations of a particular taxpayer should be addressed to your local District Taxation Office. Situations involving proposed transaction on the other hand are more appropriately the subject of an advance income tax ruling in accordance with the instructions in Information Circular 70-6R.
With respect to your question regarding filing requirements of an incorporated non-profit organization, we refer you to paragraph 3 of the Special Release to Interpretation Bulletin IT-496 which confirms your understanding that such corporations must file annual returns. Where such a corporation has not filed for several years instructions regarding filing procedures should be obtained from your local District Taxation Office.
Some of your concerns regarding excess funds are addressed in paragraphs 7,8 and 9 of IT-496. You may wish to review the comments contained therein.
The determination of offside status is a function of Audit. Additional information in this regard may be obtained at your local District Taxation Office. District Office personnel should also be able to give you information with respect to their policy regarding the matter of notices of determination raised on page 3 of your letter.
We trust that our comments will be of some assistance to you.
Yours truly,
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch