January 2010
ONTARIO PROVINCIAL POLITICAL CONTRIBUTIONS
FREQUENTLY ASKED QUESTIONS (FAQ’S)
Considerable information on Ontario Provincial Political Contributions is available from your tax advisor, Elections Ontario (www.electionsontario.on.ca or ph.1-888-668-8683), Ontario Ministry of Revenue (www.rev.gov.on.ca ph.1-866-668-8297).
Here are some Frequently Asked Questions (FAQ’s) on Ontario Provincial political contributions that we receive at The Perth-Wellington Provincial PC Association:
1. Question: When can I contribute to a Candidate’s Campaign?
Answer: The Ontario Election Finances Act (EFA) provides that Contributions may not be accepted by or on behalf of a registered candidate in an Ontario Provincial election until after a writ is issued. Contributions may then be accepted for the Campaign Period, a period ending 3 month’s after polling day.
However, a registered riding Association can accept funds at any time as long as the funds are made out to the Association. The Association can also incur pre-writ expenses on behalf of the candidate and some portion will be transferred to the Candidate Campaign and may be subject to limit. The Act requires that the Association assume any deficit or surplus from a campaign.
2. Question: Who may contribute?
Answer: Political contributions may be made by a person normally resident in Ontario, a corporation that is not a registered charity and carries on active business in Ontario, and a district labour council, or trade-union that holds bargaining rights for employees in Ontario.
3. Question: How much may be contributed?
Answer: The Election Finances Act (EFA) imposes limits on eligible political contributions for the 2009-2013 years as follows:
|
|
To Provincial Party |
To Constituency Association Each Total |
To Candidate Each Total |
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Annually – for each Party
|
$9,300
|
$1,240 |
$6,200
|
Nil
|
|
|
Extra during a campaign period
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$9,300
|
Nil
|
$1,240
|
$6,200
|
|
4. Question: How may contributions be given?
Answer: In the Perth-Wellington PC Association, contributions over $25 must be by cheque drawn on a bank account in the contributor’s name or a money order (contributor named and signed by the contributor). Please, no anonymous contributions. The Tax Receipt will be issued in the name of the person signing the cheque.
5. Question: What tax credits are available?
Answer: You will receive a receipt for tax purposes in order to claim the Ontario Political Contribution Tax Credit to reduce Ontario Tax payable as in the following table for Individuals:
Tax Credit for Individuals (January 1, 2009 to December 31, 2013)
Total Contributions Credit Calculation Maximum Credit
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Up to $372
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75% of contribution
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$279
|
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$372 to $1,240
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$279 plus 50% of the amount over $372
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$713
|
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More than $1,240
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$713 plus 33 1/3% of the amount over $1,240 OR $1,240, whichever is less |
$1,240
|
The maximum credit of $1,240 is reached when you have made eligible contributions of $2,821. The credit is refundable where it exceeds taxes owing. The credit can be claimed only for the year of contribution.
Contributions by Corporations
Sections 53.1 and 53.2 of the Taxation Act, 2007 provide that, for taxation years ending after 2008, a non-refundable tax credit is available to corporations that make eligible political contributions to registered candidates, registered constituency associations or registered parties. A corporation may carry forward unused eligible contributions, including contributions made before 2009, for up to 20 years.
IN SUMMARY, this means the after-tax cost of a Contribution is very low indeed, as illustrated in the following table for some sample contributions by an Individual:
CONTRIBUTION CREDIT YOUR COST
$ 50.00 $ 37.50 $ 12.50
100.00 75.00 25.00
200.00 150.00 50.00
We urge you to consider a financial contribution to the Association to-day to help elect a Progressive Conservative MPP from Perth-Wellington. We feel it’s one of the best-value donations around for a tax-paying Ontarian.
6. Question: Are my annual Association Membership Fees tax-receipted and if not, why should I keep them renewed?
Answer: Unfortunately, annual Association Membership Fees are not receipted as Political Donations. Fees help cover the day-to-day costs of the Association including communicating with members, member and executive meetings and so on. An Association Membership automatically enrolls you as a member of the Ontario PC Party. It therefore gives you a member vote in Party and Association affairs. We encourage you to keep your membership current as this is the only way you can be assured of receiving all communications and fully participate in Party activities. It also gives you preferred rates at events such as Conferences.
If you haven’t renewed your Membership for the year we urge you to do so!
Further information is available from your tax advisor, Elections Ontario (www.electionsontario.on.ca or ph.1-888-668-8683), Ontario Ministry of Revenue (www.rev.gov.on.ca ph.1-866-668-8297) or by contacting the Association through the Contact information on this site.
THANK YOU FOR YOUR GENEROUS SUPPORT!
PERTH-WELLINGTON PROVINCIAL P.C. ASSOCIATION