When to file a T1044 Non-Profit Organization (NPO) Information Return
This return might be required for clubs, societies, associations, strata corporations, housing corporations, marina corporations, etc. that are not a charity but are considered to be a NPO per paragraph 149(1)(l) of the Income Tax Act. Furthermore, agricultural organizations for the purpose of paragraph 149(1)(e), boards of trade and chambers of commerce might also be required to file this return.
If, your organization belongs to any of the above-mentioned categories, the filing requirement becomes mandatory when: If, your organization belongs to any of the above-mentioned categories, the filing requirement becomes mandatory when:
- it received or is entitled to receive taxable dividends, interest, rentals or royalties totaling more than $10,000 in the (current) fiscal period;
- the total assets of the organization are valued at more than $200,000 at the end of the immediately preceding fiscal period; or
- it had filed a T1044 return for a previous fiscal period.
If a T1044 is required to be filed, it must be filed no later than six months, after the fiscal year end. If the return is late, the basic penalty is $25/day, with a minimum penalty of $100 and a maximum of $2,500 for each failure to file.
If your organization meets the requirements above and has never filed before, don’t panic just yet. Contact us at RHN to help you navigate the voluntary disclosure program.
If your organization may have filed in the past and stopped for whatever reason, you should contact us to try to alleviate any further penalties.
The continuation of filing the T1044 return is crucial, however, in our experience, it may be missed by those who are charged with governance. Change of management, year-end financial statements being prepared late, change of bookkeeper, or operating below the required threshold but filed in the past due to major renovations taking place, are some of the reasons we’ve seen when T1044 filings have been missed.
If you have any questions, contact us today and we can assist you with the above or any other accounting needs your organization may need.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.