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Bill C-377 – Is your Union ready?

Bill C-377 has received royal assent.  What does this mean for your union?

Up until now, labour unions were not required to report information to the Canada Revenue Agency (CRA). This has changed dramatically under Bill C-377, an act to amend the Income Tax Act to require that labour organizations provide financial information for public disclosure, which received royal assent on June 30, 2015.  It will come into effect for fiscal years commencing on or after January 1, 2016.

New Requirements:

While, labour unions are still exempt from tax under subsection 149(k) of the Income Tax Act; now, unions must compile and submit the following information to the CRA:

  • Financial statements including a balance sheet and a statement of income and expenditures;
  • Details of all transactions for any payer or payee where the aggregate for the year is greater than $5,000;
  • Statement of disbursements to officers, directors, trustees, and employees with compensation over $100,000 including an estimate of the percentage of time to each of political activities, lobbying activities, and other non-labour relations activities.

The following items must be disclosed in the statement of income and expenditures:

  • Labour relation activities
  • Political activities
  • Lobbying activities
  • Contributions, gifts and grants
  • Administration
  • General overhead
  • Organizing activities
  • Collective bargaining activities
  • Education and training activities
  • Legal activities

Transactions with non-arm’s length parties must also be disclosed.

Compliance:

Does your union have the resources and support to comply with the reporting requirements of Bill C-377?  Do your bookkeeping or accounting systems need to be updated?

Stern Cohen Accountants can provide assistance to ensure that you are Bill C-377 compliant. We can even help upgrade your accounting system, train staff and prepare required statements.

When you work with Stern Cohen Accountants you’ll receive:

Sector experience – We have over 40 years’ experience assisting union locals and trade associations, both large and small. We understand the issues and the requirements.

Partnership – Continous hands-on involvement by our partners, managers and staff.  We are not afraid to get our hands dirty. We are approachable, responsive and ready to provide clear answers and solutions.

Year-round attention – We stay on top of the issues and provide regular communication to our clients. Depending on your needs, we can provide annual, semi-annual or quarterly reporting.

We Can Help:

If you are looking for an accounting firm experienced in dealing with the issues affecting labour organizations, please give us a call for a free consultation.

Free Information Package:

You might also be interested in downloading our comprehensive (and free) B-C377 Information Package available on this link.

For more information, please contact:

Richard Mendelsohn or Lorne Lebow
Partners at Stern Cohen LLP
Telephone: 416-967-5100