Union Financial Disclosure Bill Becomes Law
If you have ever wondered how exactly the unions associated with your organization spend the dues they collect from your employees, you may soon have some answers.
Bill C-377, An Act to amend the Income Tax Act (requirements for labour organizations) was a private member’s bill first introduced over two years ago. It has now received Royal Assent and has thus become law in Canada.
Unions currently receive beneficial tax treatment. Accordingly, Bill C-377 amends the Income Tax Act in order to require unions to publically disclose some of their internal financial information. Specifically, unions must disclose to the Canada Revenue Agency (CRA) any spending of more than $5,000, as well as which of their officers and employees earn more than $100,000 per year. The information provided will then be posted on CRA’s website.
The goal of the Bill is to enhance the transparency and accountability of unions, both to their members and to the Canadian public in general.