Attention charities: Be on the lookout for a letter from the Canada Revenue Agency (CRA) informing you that you have been selected for a Charities Education Program (CEP) visit.
The newly launched CEP was initiated by the CRA back in November. This program involves designated CRA staff, referred to as CEP Officers, visiting a charity’s operations in person to help charities comply with their tax obligations under the Income Tax Act. The CRA will review the charity’s records and ask questions about their activities.
How is my charity selected for a CEP visit?
There are various reasons why a CEP officer may visit your charity. Some of these reasons include:
- It is a newly registered charity
- Certain information has been flagged from its Registered Charity Information Return (Form T3010)
- The charity has fallen into areas of non-compliance. Common areas of non-compliance include issues with receipting and reporting.