Revocation as a result of an audit

What is it?

Revocation as a result of an audit is when registration as a charity is cancelled following an audit which determined that the charity ceased to comply with the requirements for registration. A charity's registration can be revoked for non-compliance issues such as:

• failing to devote its resources to charitable purposes and activities;
• failing to maintain adequate books and records;
• failing to maintain direction and control over its resources;
• participating in tax shelter arrangements that allow for the provision of inflated donation receipts.

A charity can also be revoked if it is subject to a certificate under the Charities Registration (Security Information) Act. For more information, see Charities in the International Context.

• We will send the charity a letter by registered mail explaining the reasons why we intend to revoke its registration and what its objection and appeal rights are. This letter serves as the notice of intention to revoke a charity's registration.

• The charity has 90 days from the date of the notice of intention to revoke its registration to file an objection if it believes that we have misinterpreted the facts or applied the law incorrectly.

If there is no objection or appeal, or at the end of an unsuccessful objection or appeal, the charity's registration is officially revoked when a notice is published in Part I of the Canada Gazette.

The name of the charity and the reason(s) for its revocation will also be posted in the List of charities on our Charities and giving webpages.

We will notify the charity once its registration is revoked and send a copy of Form T2046, Tax Return Where Registration of a Charity is Revoked.

The charity must complete the T2046 tax return and send it to us no later than one year after the date of the notice of intention to revoke the charity's registration. The charity must also provide a complete Form T3010, Registered Charity Information Return with applicable worksheets, schedules, and financial statements that cover the same period as the T2046 tax return. For filing information, see Revocation tax and the T2046 tax return.

Note

Letters relating to the grounds for revocation of a charity’s status are available to the public.

Related topics

• Obligations of registration
• Consequences of revocation
• Revocation tax and the T2046 tax return

References

• CSP–R12, Revocation
• CSP-R24, Revocation tax

Date modified:

2017-04-27