Do “Not-For-Profits” have to pay income tax?
“Not-For-Profit” organizations are distinguished by the Canada Custom and Revenue Agency as non-profit organizations and charities. They are two separate categories. Organizations which are registered charities are exempt from income tax. An organization which is not considered to be a charity still may qualify for tax-exempt status under the Income Tax Act if it qualifies as a non-profit organization. Some non-profit organizations which are exempt from paying income tax still may be subject to tax on property income and on certain taxable capital gains. See the Canada Custom and Revenue Agency’s Interpretation Bulletin IT-83R3 called “Non-Profit Organizations – Taxation of Income from Property”. How does a non-profit organization know if it has tax-exempt status under the Income Tax Act? The Canada Custom and Revenue Agency can advise you of your organization’s tax status by determining whether your organization is organized and operated solely for social welfare, civic improvement, p
