Consequences of non-filing

If a registered charity does not file its annual information return within six months after the end of its fiscal period, its registration could be revoked for failure to file. The consequences of revocation for a charity are:

• it no longer qualifies for exemption from income tax as a registered charity;
• it cannot issue official donation receipts; and
• it may be subject to a tax equivalent to the full value of its remaining assets (revocation tax).

Note
An annual information return must include a copy of the charity's financial statements. If the financial statements are missing, the charity has not filed a complete return and its registration could be revoked for failure to file.

Registered charities are generally given a chance to avoid revocation.

• A computer-generated reminder (TX11D, Reminder to Registered Charities to File Return) is sent to the charity if we do not receive the annual return within five months after the end of the charity's fiscal period.
• A T2051A, Notice of Intention to Revoke a Charity's Registration is sent to the charity by registered mail if we do not receive the annual return within seven months after the end of the charity's fiscal period.
• During the eighth month after the end of the charity's fiscal period, we may try to contact representatives of the charity by telephone to remind them again to file the annual return.
• In the tenth month after the end of the charity's fiscal period, we will send the charity a T2051B, Notice of Revocation of Charity's Registration that sets out the effective date of revocation and includes Form T2046, Tax Return Where Registration of a Charity is Revoked.

A charity that loses its registration because it did not file its annual information return is subject to a non-refundable $500 penalty. We intend, for the present, to apply this penalty only to charities that:

• have had their registration revoked for not filing the annual return; and
• apply for re-registration.

The names of revoked charities are published on our Web pages in the Charities Listings.

References

• CSP-R12, Revocation
• CSP-R24, Revocation tax
• CSP-R25, Revocation - Registered Canadian Amateur Athletic Association