1 October 1998 External T.I. 9819015 - NON-PROFIT ORGANIZATIONS

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues: REQUEST FOR INFORMATION ABOUT NPO. LETTER CLARIFIED BY TELEPHONE

Position: MAILED: It-496, It-83R3, It-409, Income tax guide to non-profit organizations (NPO) information return.

Reasons: NA

XXXXXXXXXX 5-981901
S. Parnanzone
October 1, 1998

Dear XXXXXXXXXX :

This is in reply to your letter of July 23, 1998. During the telephone conversation (Parnanzone/XXXXXXXXXX ) of September 4, 1998, you clarified that you are interested in obtaining information about non-profit organizations (NPO) and their filing requirements.

For your information, we are enclosing the following Interpretation Bulletins:

IT-496, Non-profit organizations
IT-83R3, Non-profit organizations - Taxation of income from property
IT-409, Winding-up of a non-profit organization
Form T1044, Non-Profit Organization (NPO) Information Return
Income Tax Guide to the Non-Profit Organization (NPO) Information Return

An NPO may be required to file an income tax return. In this regard, we would draw your attention to paragraph 14 of IT-496 and paragraph 8 of IT-83R3. In addition to an income tax return, an NPO may have to file an information return, form T1044, if its income from dividends, interest, rentals or royalties exceeds $10,000; its assets exceed $200,000; or the NPO was required to file an information return for a preceding fiscal period. For more details, please refer to the Income Tax Guide to the Non-Profit Organization (NPO) Information Return.

If you have any question about a specific fact situation, you may wish to direct them to the local tax office.

We are unable to comment on the length of time an accountant should take to prepare his or her client's financial statements since it is a private arrangement between the accountant and the client.

We trust that the foregoing is of assistance to you.

Yours truly,

J. Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch