|
FOR IMMEDIATE RELEASE
December 6, 2010
OTTAWA – The Canadian Bar Association’s (CBA) National Charities and Not-for-Profit Law Section is opposed to the salary disclosure requirement and the compensation cap contained in Bill C-470, An Act to Amend the Income Tax Act, and says the private member’s bill should not be passed.
“While this Bill may seem positive at first glance, it will have a negative and lasting impact on the not-for-profit sector,” says Terrance Carter, of Orangeville, Ontario, Chair of the CBA’s Charities and Not-for-Profit Law Section. “We see no evidence of excessive pay packages, except in the case of one or two instances mentioned in the media. The CBA supports appropriate compensation for senior people working for charities.”
Bill C-470 amends the Income Tax Act to revoke the registration of a charitable organization, public foundation or private foundation if the annual compensation it pays to any single executive or employee exceeds $250,000. In its submission, the CBA says the Bill’s aim – transparency and avoidance of extravagant expenditures by registered charities – can be met through the existing Income Tax Act and regulations.
The CBA predicts the proposed salary cap will undermine the work of many large registered charities, by reducing the pool from which they can draw senior staff.
“Safeguards are already in place to prevent payment of excessive compensation, and this one-size-fits-all approach will undermine the viability of the charitable sector,” says the CBA submission.
The CBA says the salary disclosure requirement is unnecessary and unhelpful in light of current disclosure requirements. Under the proposed disclosure requirement, Canadian registered charities would be required to divulge name, title and annual compensation of the five highest earners.
Transparency and accountability in the charity sector are desirable, says the CBA submission. “However, transparency is not an absolute value and must be balanced with privacy, efficiency and other factors. Disclosing the compensation range (but not the name of the person receiving it) for the 10 highest-paid executives or employees provides a suitable level of transparency without violating the privacy of individuals.” That information is currently available at the Canada Revenue Agency website, at no charge.
Terrance Carter will present the CBA submission to the Finance Committee on Monday, December 6, at 4:30 p.m. in Room 253-D, Centre Block. The CBA submission is available on the website.
The Canadian Bar Association is dedicated to support for the rule of law, and improvement in the law and the administration of justice. Some 37,000 lawyers, law teachers, and law students from across Canada are members.
-30-
MEDIA CONTACT:
Hannah Bernstein
The Canadian Bar Association
Tel: 613-237-2925 x 146
E-mail: hannahb@cba.org
|
