Ottawa, July 4, 2011

Archived - Department of Finance Invites Comments on Proposal to Strengthen Regulation of Registered Canadian Amateur Athletic Associations

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The Department of Finance is inviting stakeholders to comment on a proposal made in Budget 2011 as part of a package of initiatives to strengthen the regulatory framework that applies to registered Canadian amateur athletic associations (RCAAAs). 

Specifically, stakeholders are invited to provide feedback on the proposal to require RCAAAs to operate for the “exclusive purpose and exclusive function” of promoting amateur athletics on a nationwide basis, rather than “primarily” for this purpose, as is currently required.

This proposed change would extend to RCAAAs the same key regulatory requirements that apply to registered charities, which are required to operate exclusively for charitable purposes. In addition, RCAAAs would be subject to the same accountability as registered charities regarding the use of tax-assisted funds.

Under the enhanced framework, RCAAAs would still be permitted to stage or engage in international events and competitions, as well as other activities that are consistent with their mandate to promote amateur athletics in Canada. In addition, consistent with the tax regime for registered charities, certain related activities would be permitted. RCAAAs would be permitted to carry on related business activities, such as selling merchandise related to their sport, and to engage in limited non-partisan political activities.

Stakeholders are invited to provide feedback on the introduction of the “exclusivity of purpose and function” test for RCAAAs by August 31, 2011. Comments may be submitted to or by mail to:

RCAAA Consultation
Tax Policy Branch
Department of Finance
140 O’Connor Street
Ottawa, Ontario
K1A 0G5

For further information, media may contact:

Jack Aubry
Media Relations
Department of Finance

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