Bill S-222 explained in plain English
An Act to amend the Income Tax Act (use of resources)
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 43rd Parliament, 2nd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill S-222 amends the Income Tax Act to permit charities to provide resources to non-qualified donees under specific conditions, while also clarifying spending rules and introducing penalties.
Bill S-222, also known as the Effective and Accountable Charities Act, proposes to amend the federal Income Tax Act. The main goal is to allow registered charities in Canada to provide their resources (such as grants or gifts) to individuals or organizations that are not officially recognized as 'qualified donees'. However, this would only be permitted if the charity takes reasonable steps to ensure these resources are used solely for charitable purposes. The bill also clarifies rules related to how charities must spend their funds each year and introduces a penalty for certain transactions between charities that are not at arm's length. Additionally, it mandates a review of the changes made by this Act within five years of it coming into force.
- Allows registered charities to provide resources to individuals or organizations that are not qualified donees, provided they take reasonable steps to ensure these resources are used exclusively for charitable purposes.
- Modifies the definition of 'charitable activities' within the Income Tax Act to include making resources available to non-qualified donees under specific conditions.
- Clarifies that charitable foundations can make resources available to non-qualified donees if they take reasonable steps to ensure the resources are used exclusively for a charitable purpose.
- Establishes criteria for what constitutes 'reasonable steps' for a charity when providing resources to a non-qualified donee. This includes collecting necessary information and establishing measures or conditions to ensure the resources are used for charitable purposes.
- Modifies existing provisions related to how charities must expend funds annually, including their disbursement quotas.
- Introduces a penalty for registered charities that receive gifts from non-arm's length charities and do not expend sufficient additional amounts on charitable activities or gifts to arm's length qualified donees.
- Requires the Minister of National Revenue to review the provisions enacted by this Act within five years of its coming into force and to table a report on this review in Parliament.
- Specifies that the Act comes into force two years after receiving royal assent.
- Registered charities in Canada.
- Charitable foundations.
- Charitable organizations.
- Individuals and organizations that are not qualified donees.
- The Minister of National Revenue.
- Charities are permitted to provide resources to non-qualified donees if they take reasonable steps to ensure those resources are used exclusively for charitable purposes.
- Charities must collect information and establish measures to ensure resources given to non-qualified donees are used for charitable purposes.
- Charities must comply with revised rules regarding their annual disbursement quotas.
- Charities may be liable for a penalty if they receive gifts from non-arm's length charities and do not meet new expenditure requirements.
- The Minister of National Revenue is obligated to undertake a review of the Act's provisions within five years of its commencement.
- The Act comes into force two years after it receives royal assent (Section 7).
- The Minister of National Revenue must undertake a review of the provisions enacted by the Act within five years after it comes into force (Section 6(1)).
- The Minister must table a report on the review in Parliament within one year after the review is undertaken (Section 6(2)).
- A penalty of 110% of the difference between the fair market value of a property and the additional amount expended will be applied to a registered charity in certain situations involving non-arm's length gifts (Section 4(2)).
- A penalty is imposed on a registered charity that receives a gift of property (other than a designated gift) from another registered charity with which it does not deal at arm's length, if it fails to expend, in addition to its disbursement quota for the current and subsequent taxation years, an amount less than the fair market value of the property on charitable activities or gifts to arm's length qualified donees. The penalty is 110% of the difference between the fair market value of the property and the additional amount expended (Section 4(2)).
- The specific information required and the exact measures, restrictions, or conditions a charity must establish to satisfy the 'reasonable steps' requirement for providing resources to non-qualified donees are not detailed in the provided text and may be subject to interpretation or further regulation.
- The term 'reasonable steps' is not explicitly defined beyond the general requirements in Section 2(15).
- The bill does not specify the process or criteria for the 'prescribed form' mentioned in relation to the Minister's ability to specify an amount for expenditure purposes (Section 2(12)).
Changes definitions and provisions related to charitable activities, qualified donees, disbursement quotas, and penalties for charities.
Source: Section 2
Modifies the definition of 'charitable activities' to permit resource provision to non-qualified donees under certain conditions, and clarifies rules for charitable foundations and organizations regarding resource expenditure.
Source: Section 2(1), 2(2), 2(6), 2(13), 2(14), 2(15)
Adjusts provisions related to expenditures made by a charity during its winding-up period on charitable activities.
Source: Section 3
Modifies rules concerning gifts received by registered charities from other registered charities with which they do not deal at arm's length, including the imposition of a penalty.
Source: Section 4
Updates provisions related to expenditures made by a charity on charitable activities after receiving a notice of assessment.
Source: Section 5
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
Bill S-222 completed its first and second readings, committee review, and third reading in the Senate before moving to the House of Commons for first reading, and is now at the second reading stage in the House of Commons.
This record outlines the procedural steps for Bill S-222 in the Senate. The bill had its first reading on February 8, 2021, marking its official introduction. It then proceeded to second reading on March 16, 2021, where speeches were made by Senators Omidvar, Mercer, and Plett on May 6 and May 25, 2021. The bill was considered in committee on June 1, 8, and 9, 2021, followed by third reading on June 17, 2021. It then moved to the House of Commons for its first reading on June 23, 2021, and is currently at the second reading stage there. This artifact details the bill's journey through the Senate and its initial steps in the House of Commons.
On February 8, 2021, the Senate introduced Bill S-222, had proceedings on Bill C-7 and Bill C-3, and engaged in debates on various societal issues and government responses.
On February 8, 2021, in the Senate, Bill S-222, an Act to amend the Income Tax Act (use of resources), was introduced and received first reading. The Senate proceedings also included debates and statements on various topics, such as Black History Month, the Manitoba 150 Women Trailblazers, Yazidi refugees, and tributes to Kathleen Heddle. Several committee reports were presented and adopted, and various procedural motions were passed, including those related to hybrid meetings and senators speaking from different seats. The Senate also heard questions and statements regarding the COVID-19 vaccine rollout, the Indian Act, and travel restrictions. Significant debate occurred concerning Bill C-7, an Act to amend the Criminal Code (medical assistance in dying), with senators discussing its provisions, potential amendments, and constitutional implications. The sitting also included debate on Bill C-3, concerning amendments to the Judges Act and Criminal Code related to sexual assault cases, and the motion for an address in reply to the Speech from the Throne.
Bill S-222 successfully completed its second reading and related debates in the Senate before moving to the House of Commons.
This artifact details the procedural progress of Bill S-222 through the Senate at the second reading stage. It indicates that the Senate completed its second reading of the bill on Tuesday, March 16, 2021. Following this, there were major speeches delivered on May 6 and May 25, 2021. The bill then moved to committee consideration and third reading in the Senate before being sent to the House of Commons, where it was placed on the Order of Precedence on June 23, 2021.
The Senate sitting on March 16, 2021, featured debates on multiple bills, including significant discussions on medical assistance in dying (Bill C-7) and various other legislative matters, alongside routine proceedings and question period.
This artifact is a record of a Senate sitting that took place on March 16, 2021. The sitting included statements from senators on various topics, routine proceedings, question period where senators asked questions of the Government Representative in the Senate, and "Orders of the Day" which lists the bills and motions that were debated or considered. Notably, Bill S-222, concerning amendments to the Income Tax Act related to the use of resources by charities, was debated at second reading and the debate was adjourned. The record also details extensive debates and votes on Bill C-7 concerning medical assistance in dying, and debates on Bills C-18 (Canada-UK Trade Continuity Agreement), C-24 (Employment Insurance Act and Canada Recovery Benefits Act), S-203 (online access to sexually explicit material for young persons), S-204 (trafficking in human organs), S-205 (Parliamentary Visual Artist Laureate), S-209 (voting age), S-213 (Women and Gender Equality Act), and S-224 (increasing parole ineligibility). The sitting also included reports being presented, notices of motions, and first readings of several bills.
On March 16, 2021, the Senate debated various issues including tributes, parliamentary reports, and multiple bills, with significant discussion on medical assistance in dying, Canada-UK trade, COVID-19 relief measures, and online pornography.
This record details a Senate debate on March 16, 2021, covering various topics including tributes to deceased individuals, discussions on the Canadian wine industry and sports coaching, parliamentary procedure reports, and statements on multiple bills. Notably, there was a debate on Bill C-7 concerning medical assistance in dying, Bill C-18 regarding Canada-UK trade, Bill C-24 on employment insurance and COVID-19 relief, and Bill S-203 on protecting youth from online pornography. The discussion also touched upon systemic racism, the creation of an official parliamentary visual artist, lowering the voting age, and amendments to criminal law regarding human organ trafficking and extending parole ineligibility periods for certain offenders.
The Senate held a sitting on May 6, 2021, which included statements, question period on various issues including COVID-19, debates on several bills, a point of order, and the granting of Royal Assent.
This document is a record of a Senate sitting that occurred on May 6, 2021. The sitting included Senators' Statements on various topics, including congratulations to Senator Wanda Thomas Bernard, Asian Heritage Month, vaccine hesitancy, freedom of expression, and tributes to deceased individuals. Routine Proceedings included the first reading of the Reduction of Recidivism Framework Bill. Question Period addressed various issues including the COVID-19 vaccine rollout, pandemic supplies, international aid, vaccine patents, anti-Asian racism, the mandate of Louise Arbour, allegations against General Vance, the position of Governor General, federal vaccine support programs, access to safe drinking water, and compensation for dairy farmers. There was also a point of order raised by Senator Plett regarding the conduct of Senator Dalphond. Several bills were debated, including amendments to the Judges Act and Criminal Code (Bill C-3), amendments to the Parliament of Canada Act (Bill S-4), and the establishment of International Mother Language Day (Bill S-211). The sitting concluded with Royal Assent being given to two bills, and a motion to adjourn the Senate until May 25, 2021.
During the Senate's second reading debate on Bill S-222, senators discussed the need to modernize the Income Tax Act's rules for charities to allow for greater flexibility in partnerships and resource use, shifting from "direction and control" to "resource accountability."
On May 6, 2021, the Senate continued its debate on Bill S-222, An Act to amend the Income Tax Act (use of resources). The debate focused on how charities can more effectively use their resources and partner with other organizations, both domestically and internationally. Senators discussed the current "direction and control" requirements in the Income Tax Act, which they argued are complex, costly, and limit the reach of Canadian charities. The proposed changes would shift the focus to "resource accountability" and "due diligence," allowing charities more flexibility in how they disburse funds while ensuring they are used for charitable purposes. The discussions highlighted potential benefits for international cooperation, support for Indigenous communities, and overall efficiency within the charitable sector. The debate was continued by Senator Terry M. Mercer and Senator Mary Coyl.
On May 25, 2021, the Senate convened for routine proceedings, question period, and debate on various bills, including the second reading and referral of Bill S-222, An Act to amend the Income Tax Act (use of resources).
On May 25, 2021, the Senate convened. The sitting included the election of a Speaker pro tempore, congratulations to senators on new roles, discussions on Asian Heritage Month and antisemitism, and a debate on the federal greenhouse gas offset system. Procedural matters included a motion to resolve into a Committee of the Whole to consider Bill S-4, and the first reading of several bills, including one to amend the Income Tax Act (Bill C-208, which originated in the House of Commons). Question Period addressed topics like the COVID-19 vaccine rollout, liquefied natural gas projects, and systemic racism. Orders of the Day included debate continuation on several bills and the second reading and referral to committee of various bills, including Bill S-222, An Act to amend the Income Tax Act (use of resources). A point of order was raised and debated, and the sitting concluded with adjournment.
On May 25, 2021, the Senate debated Bill S-222, an act to amend the Income Tax Act regarding the use of resources by charities, with a key speech supporting the bill's aims while acknowledging the need for its study.
During a Senate sitting on May 25, 2021, discussions related to Bill S-222, an Act to amend the Income Tax Act concerning the use of resources by charities, took place. Senator Donald Neil Plett spoke as the critic of the bill, expressing support for the legislation while highlighting its necessity and the problems it aims to address. The debate also touched upon other bills and various Senate proceedings, including the selection of a Speaker pro tempore, congratulations to senators, statements on Asian Heritage Month and antisemitism, and discussions on the Federal Greenhouse Gas Offset System, COVID-19 vaccine rollout, liquefied natural gas projects, investment in oil and gas companies, forced sterilization, recovery planning, systemic racism, and the former ferry terminal.
Bill S-222, concerning amendments to the Income Tax Act regarding resource use, successfully completed its committee review and third reading in the Senate before moving to the House of Commons for its second reading.
This record indicates that Bill S-222, an Act to amend the Income Tax Act (use of resources), completed its consideration in committee stage in the Senate on June 9, 2021. Following this, it proceeded through third reading in the Senate on June 17, 2021, and received first reading in the House of Commons on June 23, 2021. The bill is now at the second reading stage in the House of Commons.
The Senate met on June 9, 2021, where the Standing Senate Committee on National Finance presented its report on Bill S-222 without amendment, followed by tributes, Question Period, and a vote on a different bill.
On June 9, 2021, the Senate of Canada met. During the sitting, the Standing Senate Committee on National Finance presented its fifth report, which stated that Bill S-222, An Act to amend the Income Tax Act (use of resources), had been examined and was reported back without amendment. The Senate then proceeded to debate other matters, including tributes to Senator Jim Munson on the occasion of his retirement. The sitting also included Question Period on various topics and a deferred vote on an amendment to Bill S-209, which was negatived. A point of order was raised regarding senators participating in virtual meetings from unsecured locations, and the Speaker reserved their ruling.
Bill S-222 completed its Third Reading in the Senate on June 17, 2021, and has since moved to the House of Commons for First Reading.
This artifact describes the procedural progression of Bill S-222 in the Senate. It shows that the bill completed its Third Reading stage on June 17, 2021. After this, it moved to the House of Commons for a First Reading on June 23, 2021, and is currently at the Second Reading stage there. The artifact also lists the dates of speeches and committee discussions that occurred during the Senate's consideration of the bill.
During a Senate sitting on June 17, 2021, the Senate passed Bill S-222, debated Bill C-208 and Bill C-218, addressed various other proceedings including committee reports and question period, and concluded with tributes and adjournment.
This Senate sitting on June 17, 2021, included tributes to departing pages, discussions on World Refugee Day, Filipino Heritage Month, artwork and heritage, municipal elections, and National Duty Counsel Day. Several routine proceedings occurred, including the tabling of the Sixth Report of the National Finance Committee on Supplementary Estimates (A) and the presentation of the Tenth Report of the Social Affairs, Science and Technology Committee on a bill to amend the Citizenship Act. Motions were adopted regarding Senate adjournment and committee meeting procedures. Question Period addressed topics such as the National Microbiology Laboratory, library access funding, Bill C-22, natural resource development, military misconduct allegations, and funding for the Nunavut Marine Council. The Senate also continued debate on the Speech from the Throne and debated and passed the International Mother Language Day Bill. Crucially for this artifact, Bill S-222, concerning amendments to the Income Tax Act, reached its third reading and was passed. The Senate also debated Bill C-208, regarding the transfer of small business or family farm or fishing corporations, and Bill C-218, concerning sports betting, with amendments proposed and debated for Bill C-218. The sitting concluded with an adjournment.
This record details the first reading completion of Bill S-222 in the House of Commons on June 23, 2021, and outlines its progression through various parliamentary stages.
This artifact records the procedural steps for Bill S-222 in the House of Commons. It shows that the bill completed its first reading on June 23, 2021, and was placed in the Order of Precedence. The artifact also notes previous stages including second reading, committee consideration, and third reading, as well as activities in the Senate.
The House of Commons sitting on June 23, 2021, focused on Question Period exchanges and the conclusion of the parliamentary session, with Bill S-222 being introduced at first reading without debate.
This artifact is a record of the House of Commons sitting on June 23, 2021. It primarily details debates, statements by members, and procedural matters. The bill itself, Bill S-222, An Act to amend the Income Tax Act (use of resources), is mentioned in the context of routine proceedings where a Member of Parliament introduced it for first reading. The majority of the document consists of Question Period exchanges on various topics and discussions regarding the end of the parliamentary session, including thanks to House staff and the process for adjourning the House. No substantive debate or vote on Bill S-222 occurred during this sitting, as it was only being introduced.
Bill S-222 had no procedural activity on June 23, 2021, but was placed in the Order of Precedence during its second reading stage in the House of Commons.
This artifact describes the procedural status of Bill S-222 at the second reading stage in the House of Commons on June 23, 2021. According to the provided information, there was no activity on this specific date within the second reading stage. The record shows that the bill was placed in the Order of Precedence on this date. It also lists previous procedural steps such as first reading, major speeches at second reading, consideration in committee, and third reading, as well as Senate activity related to the bill.
Bill S-222 has not yet proceeded to the committee stage in the House of Commons, remaining at the second reading stage.
This artifact indicates that Bill S-222 has not yet reached the stage of 'Consideration in committee' in the House of Commons. The bill is currently at the 'Second reading' stage in the House of Commons. The artifact also lists previous procedural steps such as first reading and dates of major speeches during second reading. It also shows the bill's progression through the Senate, including sponsorship and response speeches.
Bill S-222 has progressed through several stages in the House of Commons and the Senate, and is currently awaiting debate at the Report stage in the House of Commons.
This artifact describes the procedural status of Bill S-222 in the House of Commons. It indicates that the bill has reached, but not yet been debated at, the Report stage. The summary details the bill's progression through previous stages, including First Reading, Second Reading with associated speeches, Committee consideration, and Third Reading. It also notes the bill's journey in the Senate, including speeches by its sponsor and others.
Bill S-222, concerning amendments to the Income Tax Act regarding the use of resources, has progressed through various stages in the House of Commons and Senate, with its third reading in the House of Commons having not yet occurred.
This record indicates that Bill S-222 has reached the 'House of Commons Third reading' stage, but this stage has not yet occurred. The bill was first read in the House of Commons on February 8, 2021. It proceeded to second reading on March 16, 2021, with major speeches on May 6 and May 25, 2021. The bill was considered in committee on June 1, 8, and 9, 2021. Third reading in the House of Commons was scheduled for June 17, 2021. It then proceeded to first reading again on June 23, 2021. The bill also had activity in the Senate, with a sponsor's speech on March 16, 2021, and response speeches on May 6 and May 25, 2021.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced