CCI Manitoba Chapter News

Canada Revenue Agency reporting requirements

The Canada Revenue Agency (CRA) is looking to better monitor non-profit organizations (NPOs), such as condo corporations, by requiring more of them to file information returns. Currently, an information return is required if the NPO has more than $10,000 investment income or assets in excess of $200,000. The proposed changes will require NPOs with more than $50,000 revenue to file. This change will bring many more of the smaller condo corporations into the required reporting realm.

This proposed CRA change was highlighted in a recent CondoBusiness article written by Barbara Carss. This change will potentially result in more paperwork and duplication of some information, depending on the condo corporation and the province in which it resides.

Here is an excerpt for Canada’s Department of Finance website

New Filing Requirement for Small NPOs — The 2024 Fall Economic Statement also proposes to amend the Income Tax Act to require NPOs that do not meet the thresholds for filing the annual NPO information return to file a new, short-form return that contains basic information about the organization, including:

• its business number or trust number;
• the name of the organization and its mailing address;
• the names and addresses of the directors, officers, trustees or similar officials;
• a description of the organization's activities, including whether it conducts activities outside Canada;
• the organization's total assets and liabilities and annual revenues; and,
• other prescribed information.

Coming into Force — These measures would apply to the 2026 and subsequent taxation years.

The article also mentions some concerns that condo corporation revenue not derived from the monthly fees, such as renting out common elements, may lose their tax exempt status. As always, it is best for condo corporations to seek professional advice.