Cabinet has yet to confirm whether it will honor a commitment to extend the tax year for charities to February 28, following the Prime Minister’s decision to prorogue Parliament.
Blacklock's Reporter says while the Canada Revenue Agency and Finance Minister Dominic LeBlanc’s office have remained silent, one lobby group said it was assured privately by the Department of Finance that the promise would be upheld.
“We’ll look into it,” said Benoit Mayrand, a spokesperson for the Department of Finance.
The extension was announced on December 30 to allow charities to issue 2024 tax receipts for donations delayed by a 28-day Canada Post mail stoppage before Christmas, one of the busiest periods for charitable giving.
“In terms of the impact of the strike, it is too soon to know,” said Emilie Pontbriand, senior manager at Imagine Canada, a lobby group representing charities nationwide. “However, many organizations have reported significant losses.”
The Prime Minister’s prorogation of Parliament until March 24 delayed any amendments to the Income Tax Act required to formalize the extension. Despite this, Imagine Canada reassured its members that the commitment remains intact.
“We are working with the Department of Finance,” said Imagine Canada in a notice to members. “Prorogation won’t affect the deadline or the spirit of the announcement made by the government to extend the deadline. The intent to introduce legislation is what allows the Canada Revenue Agency to count receipts accordingly.”
A similar situation occurred following a 1997 postal strike, when the Canada Revenue Agency honored a 30-day extension for charitable tax receipts even though the enabling legislation was not passed until 1999.
“Organizations and donors need not be worried by the fact legislation will be passed after the tax receipt extension,” said Imagine Canada. “The eventual legislation was intended to be applied retroactively, and prorogation does not change that.”
Other charities, however, expressed concern about the delay. “We are currently seeking clarity on the implications of prorogation,” said Erika Jacinto, national spokesperson for United Way Centraide Canada.
The Salvation Army highlighted the impact of the mail disruptions, noting that 65% of its annual donations occur before Christmas, with roughly two-thirds of those contributions arriving by mail.
“More than half of people accessing food banks are coming for the first time,” the Salvation Army said in a statement.
“Parents with children are missing bill payments and eating less so their children or family members can eat.”
Charities are urging the government to ensure donors can claim late contributions as 2024 tax credits to mitigate the losses caused by the postal disruptions.