Standard 2: Compliance with Laws
The land trust fulfills its legal requirements as a non-profit charitable organization and complies with all relevant laws and statutes.
Background
A land trust must comply with applicable laws. An understanding of, and compliance with, the basic legal requirements is fundamental to operating a land trust. This includes such matters as becoming and remaining a charitable organization. A land trust that fails to comply with these requirements can face financial penalties and fines, which could also apply to directors, and even revocation of its charitable status. A lawyer who understands charitable organizations can assist, but ultimately it is the land trust board’s responsibility to see that all requirements are met. Requirements include, but are not limited to: completing all corporate filings, completing the Registered Charity Information Return, Form T3010; retaining charitable status; following charitable solicitation laws; and adhering to the relevant federal, provincial or local regulations on non-profits or land trusts (such as waiting periods before being able to hold conservation agreements in some provinces).
Relevant Law
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I; see
- Income Tax Act, SC 1985, c. I, s. 149.1 (6.3);
see also Canada Revenue Agency policy interpretations at
- Society Act, RSBC 1996, c. 433, s. 27.
- Canada Corporations Act, RSC 1970, c. C-32.
- Land Title Act, RSBC 1996, c. 250, s. 219:
- Receiver General – to hold Covenants in BC:
- Income Tax Act, SC 1985, c. I;
see Canada Revenue Agency guide “Employee or Self-Employed?” at:
- Income Tax Act, SC 1985, c. I, s. 149.1 (6.3);
see also Canada Revenue Agency policy interpretations at
- Expropriation Act, RSBC 1996, c. 125.
- Expropriation Act, SC 1996, c. E-21.
- Property Law Act, RSBC 1996, c. 377, s. 35.
- Land Title Act, RSBC 1996, c. 250, s. 218-223.
- Society Act, RSBC 1996, c. 433, s. 39, 41.
- Canada Not-for-profit Corporations Act, SC 2009, c. 23, s. 179-194.
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I; see:
- Society Act, RSBC 1996, c. 433; Society Act Regulations, BC Reg 4/78
- Canada Corporations Act, RSC 1970, c. C-32.
- Canada Not-for-profit Corporations Act, SC 2009, c. 23.
- Winding-Up and Restructuring Act, SC 1985, c. W-11.
- Land Title Act, RSBC 1996, c. 250, Parts 10 and 10.1
- Canada Revenue Agency policy interpretations of Income Tax Act, SC 1985, c. I; see:
- Lobbyists Registration Act, SBC 2001, c. 42, s. 3
- Employment Standards Act, RSBC 1996, c. 113.
- Workers Compensation Act, RSBC 1996, c. 492.
- Human Rights Code, RSBC 1996, c. 210.
- Canada Pension Plan, c. C-8.
- Employment Insurance Act, SC 1996, c. 23.
- Personal Information Protection Act, SBC 2003, c. 63
- Personal Information Protection and Electronic Documents Act, SC 2000, c. 5.
- Income Tax Act, SC 1985, c. I, s. 149.1 (6.3);
see also Canada Revenue Agency policy interpretation at
- Income Tax Act, SC 1985, c. I, s. 118.1;
see also Canada Revenue Agency policy interpretation at
- Society Act, RSBC 1996, c. 433.
- Canada Corporations Act, RSC 1970, c. C-32.
- Society Act, RSBC 1996, c. 433, s. 30.
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I;
see Income Tax Technical News No. 26 at:
- Taxation (Rural Area) Act, RSBC 1996, c. 447.
- School Act, RSBC 1996, c. 412.
- Police Act, RSBC 1996, c. 367.
- Property Transfer Tax Act, RSBC 1996, c. 378.
- Social Service Tax Act, RSBC 1996, c. 431.
PRACTICE
A. Compliance with Laws
The land trust complies with all applicable federal, provincial and municipal laws
Background
Federal, provincial and local agencies establish laws and regulations applicable to non-profit, charitable organizations. They also establish reporting requirements to monitor compliance with statutes. Knowing and following the law is essential for all land trusts. Canadian courts do not consider ignorance of the law to be a viable defence.
Assessment Questions
BC Assessment Questions
- Who is responsible for tracking any changes in laws?
- How does that individual ensure that they are up to date – record known tools or other sources?
