Budget 2023: Will the Provisions Affecting Charities be Removed from the Revised AMT Calculations?

On October 16, 2023, Senator Omidvar asked Senator Gold, the Government Representative in the Senate, if the government will remove the provisions affecting charities from the revised Alternative Minimum Tax (AMT) calculations. Watch:

Hon. Ratna Omidvar: Senator Gold, I don’t need to tell anyone in the chamber — or you — how charities have suffered during COVID and post-COVID. Donations are down, while service demands are up, and now they are facing the negative tail end of the alternative minimum tax, which was in Budget 2023. According to a report by the Canadian Association of Gift Planners, they estimate that as much as 30% of the $11.4 billion that is given to charities annually could be tied up in these changes. That’s not chump change. That’s a lot of money, Senator Gold.

I don’t disagree with the principle of the alternative minimum tax. Canadians, whether they are wealthy or not, should pay their fair share, but this should not come at a cost to Canadian charities. Will the government remove the provisions impacting charities?

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question, as well as for underlining this and for your work in ensuring that we have a robust sector that is supported not only by Canadians but by public policy as well. However, without the contribution of those supported by the charitable sector, so much of what we take for granted in Canada could not be accomplished, especially in these tough times.

I have not been advised as to what the plans of the government are with regard to that, but I will certainly take your preoccupations and legitimate concerns to the attention of the minister.

Senator Omidvar: Thank you, Senator Gold. I’m told that Finance has its own in-house calculations about the amount at play. We have an estimate of 30% of $11.4 billion. Maybe the government’s estimate is different. I would ask you to please share those calculations with us.

Senator Gold: I will certainly inquire as to the status of the thinking of the government in this regard. Again, it is important that our public policy strike the right balance to support the charitable sector, but also to be appropriate in all other respects. I have every confidence that is the goal of the government.