Ontario charities incorporated under the Ontario Corporations Act can save time and energy by filing one new directors and officer form instead of two, beginning when the Ontario corporation has a fiscal year end in 2009.

Ontario charities incorporated under the Ontario Corporations Act used to have to file directors and officers information with both the Companies Branch to update their information and also CRA in the T3010.  This meant similar information was being provided to both government agencies.  This created more paperwork than what was necessary.  Now for Ontario charities with a fiscal year end January 1, 2009 or later, CRA and the Ontario government has a new form which can be attached to the T3010 called the “Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (RC232-WS)”.  If you file this form an Ontario Corporations Act corporation that is a charity does not need to file the regular Ontario annual return.  This form will also be pre-populated so you can focus only on the changes.  The new blended form RC232-WS has all that Ontario and CRA requires.  Parts 1 to 7 contain pre-printed information from the Ontario Companies Branch, Parts 1 to 6 collect information that are only required for Ontario’s purposes, Part 7 is useful for Ontario and the CRA, and Part 8 collects information CRA only. According to the CRA, the information collected in Part 8 is confidential and will not be transmitted to the Government of Ontario.  This combined form should save Ontario Corporations Act charities some time and also increase the reliability of the information.

Here is the full explanation from CRA:

http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rtrn/ctao-eng.html

Important information for registered charities incorporated, continued, or amalgamated in Ontario and subject to the Ontario Corporations Act

As part of the Corporate Tax Administration for Ontario (CTAO), the Canada Revenue Agency (CRA) will collect, on behalf of the province, Ontario Corporations Information Act Annual Return information from registered charities incorporated, continued, or amalgamated in Ontario and subject to the Ontario Corporations Act. These registered charities will benefit from one form, one set of rules, and one point of contact.

Beginning in 2009, charities incorporated, continued, or amalgamated in Ontario and subject to the Ontario Corporations Act will receive, and have the option to file, a new Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (Form RC232-WS) with their Registered Charity Information Return (Form T3010).  All information collected on behalf of the province will be transmitted to the Government of Ontario to record the information on the public record maintained by the province.

For more information on how the CRA’s single administration of Ontario’s corporate income tax affects registered charities, see the Ontario Corporations Information Act Annual Return – Questions and Answers below.

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What is CTAO?

How does CTAO affect registered charities incorporated in Ontario?

When will the CRA begin collecting the Ontario Corporations Information Act Annual Return information?

Is a registered charity required to file its Corporations Information Act Annual Return information with its Registered Charity Information Return?

What options does a charity have for filing Ontario Corporations Information Act Annual Return information?

What is the Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (Form RC232-WS)?

When should a registered charity use the RC232-WS?

What is the Ontario Corporations Information Act Annual Return (Form RC232)?

When should a registered charity use the RC232?

Can a registered charity file the RC232-WS or RC232 at any time?

Where can a registered charity get the RC232-WS or RC232?

When completing the RC232-WS or RC232, for which individuals do you need to report information?

How does a registered charity find out what information is shown on the MGS public record if they don’t have a pre-printed RC232-WS?

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Top of PageQuestions and Answers
1. What is CTAO?

Corporate Tax Administration for Ontario (CTAO) is an initiative between the federal and Ontario governments designed to implement a harmonized federal and Ontario corporate income tax administration.

For more information about the administration of Ontario’s corporate income tax, go to www.cra.gc.ca/whtsnw/tms/ctao-eng.html

2. How does CTAO affect registered charities incorporated in Ontario?

Registered charities that are incorporated, continued, or amalgamated in the province of Ontario and subject to the Ontario Corporations Act will be able to meet both provincial and federal tax and corporate filing requirements in one step.

Registered charities will no longer receive a Corporations Information Act Annual Return from the province of Ontario.  Instead, a pre-populated Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (RC232-WS) will be included with the Registered Charity Information Return package.

The Corporations Information Act Annual Return (CIA AR) is an information return required by the Ontario government to collect information under the Corporations Information Act for the purpose of maintaining a public database of corporate information with the Province of Ontario.  Corporations incorporated, continued, or amalgamated in Ontario and subject to the Ontario Corporations Act are required to file a CIA AR setting out the prescribed information as of the date of its delivery. 

Some registered charities in Ontario are not required to file the Corporations Information Act Annual Return either because they are co-operatives or because the legislation under which they are incorporated specifies that they are not subject to the Corporations Act or the Corporations Information Act.

Also, registered charities may have other provincial filing requirements, such as filing documents with the Office of the Public Guardian and Trustee under the Charities Accounting Act.  For more information, visit www.ServiceOntario.ca.

3. When will the CRA begin collecting the Ontario Corporations Information Act Annual Return information?

Registered charities with fiscal periods ending on or after January 1, 2009, will have the option to file, with the CRA, the Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (RC232-WS) or the Ontario Corporations Information Act Annual Return (RC232).

For fiscal periods ending on or before December 31, 2008, registered charities must continue to file their Ontario Corporations Information Act Annual Return with the Ontario Ministry of Revenue within 60 days of the anniversary of incorporation or amalgamation. For more information, visit www.ServiceOntario.ca.

4. Is a registered charity required to file its Corporations Information Act Annual Return information with its Registered Charity Information Return?

No. Ontario business and non-profit corporations also have the option to file a standalone Corporations Information Act Annual Return through one of the service providers under contract with the Ontario government.

For a list of service providers, visit www.ServiceOntario.ca

However, if the charity chooses to file its Corporations Information Act Annual Return separately, it must also file the Directors/Trustees and Like Officials Worksheet (T1235) with their Registered Charity Information Return (T3010) with the CRA.

Top of Page5. What options does a charity have for filing Ontario Corporations Information Act Annual Return information?

For fiscal periods ending on or after January 1, 2009, registered charities that are incorporated, continued, or amalgamated in the province of Ontario and subject to the Ontario Corporations Act, have the option of filing one of the following:

A Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (RC232-WS) with the Registered Charity Information Return (T3010);

or

An Ontario Corporations Information Act Annual Return (RC232), and a Director/Trustee and Like Official Worksheet (T1235) with the Registered Charity Information Return (T3010);

or

A Directors/Trustees and Like Officials Worksheet (T1235) with the Registered Charity Information Return (T3010) with the CRA, and the Ontario Corporations Information Act Annual Return (RC232) with a service provider under contract with the Ontario government.
The CRA will collect information from Forms RC232-WS and RC232 when they are filed with the Registered Charity Information Return (T3010). 

If a registered charity would like to make changes to its director and/or officer information before the end of a fiscal period, it must contact both the CRA and ServiceOntario separately.

6. What is the Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (Form RC232-WS)?

The Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (RC232-WS) is a blended form that collects corporate information for the province of Ontario and the CRA under the authority of both the Corporations Information Act and the Income Tax Act, respectively.

Parts 1 to 7 of the worksheet contain pre-printed information from the province of Ontario [Ministry of Government Services (MGS) public record].  All information collected on behalf of the province of Ontario will be transmitted to the Government of Ontario.

Parts 1 to 6 collect information for the province of Ontario only, Part 7 collects information for both the province of Ontario and the CRA, and Part 8 collects director/officer information for CRA purposes only. The information collected in Part 8 is confidential and will not be transmitted to the Government of Ontario.

A registered charity may file Form RC232-WS with its Registered Charity Information Return (T3010).

7. When should a registered charity use the RC232-WS?

A registered charity should submit Form RC232-WS to confirm the pre-populated information or make changes to the information appearing on the worksheet, except for the information set out in boxes 700 to 702.

If a registered charity chooses to file Form RC232-WS, it does not need to file the Directors/Trustees and Like Officials Worksheet (T1235) with its Registered Charity Information Return (T3010).

8.  What is the Ontario Corporations Information Act Annual Return (Form RC232)?

This worksheet constitutes a Corporation Information Act annual return form under the Ontario Corporations Information Act. This Corporations Information Act Annual Return should be completed by registered charities that are incorporated, continued, or amalgamated in Ontario and subject to the Ontario Corporations Act.

Form RC232 collects information for the province of Ontario only. If a registered charity files an RC232, it must also file a Directors/Trustees and Like Officials Worksheet (T1235) with its Registered Charity Information Return (T3010).

A copy of Form RC232 is available on our Web site at www.cra.gc.ca/charities

Top of Page9. When should a registered charity use the RC232?

A registered charity should submit Form RC232 if it is making changes to the information set out in boxes 700 to 702 on the pre-populated RC232-WS (name of corporation, date of incorporation or amalgamation, or Ontario Corporation Number).

It can also submit Form RC232 if it did not receive or has lost Form RC232-WS.

If the charity is filing Form RC232, it must also file the Directors/Trustees and Like Officials Worksheet (T1235) with its Registered Charity Information Return (T3010).

10.  Can a registered charity file the RC232-WS or RC232 at any time?

No. If a registered charity intends to file either the RC232-WS or RC232, it must do so with its T3010, Registered Charity Information Return.

Under the Income Tax Act, every registered charity has to file an annual Registered Charity Information Return (T3010) within six months after the end of the registered charity’s fiscal period.

For fiscal periods ending on or after January 1, 2009, a registered charity incorporated, continued or amalgamated in Ontario can file with its Form T3010 an RC232-WS or an RC232 within six months after the end of its fiscal period. For example, if the registered charity’s fiscal period end is March 31, its annual information return is due by September 30.

For fiscal periods ending on or before December 31, 2008, the charity will file a Form T3010 with the CRA within six months of the charity’s fiscal period end and an Ontario Corporations Information Act Annual Return with the Ontario Ministry of Revenue within 60 days of the anniversary of the incorporation or amalgamation.

11. Where can a registered charity get the RC232-WS or RC232?

The pre-populated Director/Officer Worksheet and Ontario Corporations Information Act Annual Return (RC232-WS) will be included as part of the Registered Charity Information Return package, which is mailed to all registered charities.

Form RC232 is available at www.cra.gc.ca/charities, or you can call the Charities Directorate to obtain a paper version at:

Ottawa area: 613-954-0410 or 613-954-6215 (bilingual)
Toll free: 1-800-267-2384 or 1-888-892-5667 (bilingual)

12. When completing the RC232-WS or RC232, for which individuals do you need to report information?

Part 7 (Director/Officer Information) should be completed to report changes to the information recorded on the Ministry of Government Services (MGS) public record.

The registered charity is required to show information on the MGS public record for all of its directors and a maximum of its five most senior officers. If the MGS public record information shows more than five officer positions, report the date elected/appointed and cease dates for all except the registered charity’s five most senior officer positions.

13. How does a registered charity find out what information is shown on the MGS public record if they don’t have a pre-printed RC232-WS?

A charity can get a Corporation Profile Report to review the information shown for the corporation on the public record maintained by the MGS.

Corporation Profile Report—Description

A Corporation Profile Report displays current information on the MGS public record for the subject corporation. All active directors and officers are listed. Some historical information, such as amalgamating corporations (where the subject corporation is an amalgamation), and name history is included in the report.

How to Obtain a Corporation Profile Report:

Electronic Service

A Corporation Profile Report can be ordered through one of the three service providers under contract with the Ontario government. Their rates are competitive, so clients should check with each one before choosing a service provider. Once a report has been ordered through a service provider, the results are immediate.

For a list of service providers, visit www.ServiceOntario.ca

Staff-assisted Service (in person at the public office, or by mail)

A Corporation Profile Report can be ordered in person at the Companies and Personal Property Security Branch Public Office in Toronto between 8:30 a.m. and 5:00 p.m. Monday to Friday (excluding statutory and government holidays).  The public office is located at 375 University Avenue on the second floor. Search results are available immediately.

A Corporation Profile Report can also be ordered by mail from the Companies and Personal Property Security Branch at 393 University Avenue, Suite 200, Toronto, Ontario, M5G 2M2. Allow four to six weeks for processing.
Cost of the Corporation Profile Report

Refer to the Companies Service Standards and Fees document on the www.ServiceOntario.ca Web site.

 

Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario.  He can be contacted at mark@blumbergs.ca or at 416-361-1982 x. 237. To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit the Blumbergs’ Non-Profit and Charities page at www.blumbergs.ca/non_profit.php or www.globalphilanthropy.ca

This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.