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
F. Current Information
Land trusts are strongly advised to remain up to date with changes in tax law and other legislation that may impact their ability to hold conservation agreements, to operate as a registered charity or non-profit corporation, to determine what political activity is and to clarify to what extent they can participate in the development of public policy.
Background
Land trusts are impacted by legislative changes, both to legislation governing non-profit and charitable activities, but also to legislation that governs tax matters and land use designations. In order to be effective, land trusts must remain current regarding potential changes to any legislation that may affect their operations.
Assessment Questions
BC Assessment Questions
- Does the land trust review, at least once every 5 years, tax law and other legislation for changes that may impact its ability to operate?
- Does the land trust subscribe to the LTABC’s listserve, membership, or other LTA’s to keep up to date on changes?
- Does the land trust subscribes to other resources to keep up to date including: CharityLaw.ca and CRA websites and newsletters?
CLTA Assessment Questions
- Does the land trust have a policy in place to attain this information?
- If yes, what is the process to notify board members and relevant staff of this information?
Resources: Example Policies & Template Documents
Other Resources
-
CRA Charity Site and Newsletter
Look to the Canada Revenue Agency's website and newsletter for any changes/updates to the rules and regulations of operating a charity.
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CharityLaw.ca Website and Newsletter
CharityLaw.ca provides information on legal issues of interest to charities and not-for-profit organizations both in Canada and internationally in the form of articles, seminar materials and newsletters. Regular newsletters include the Charity Law Bulletin and Charity Law Update.
