JUSTICE
Loretta Villeneuve died when her baby was born last Nov. 12, and the father, John Mclnnis, a 39-year-old truck driver from Kitchener, Ont., had to take a leave of absence from his job to look after his infant daughter. But further problems developed after the initial tragedy: Loretta Jr., born one month prematurely at a London, Ont., hospital, was underweight at four pounds six ounces. As well, she had meningitis— a debilitating nerve disorder— and had to be fed intravenously. Meanwhile, Mclnnis applied for benefits under the maternity provisions of the Unemployment Insurance Act, but officials rejected his claim. Then a welcome turnaround occurred: Loretta recovered and went home on Dec. 18. And last week Mclnnis learned that he would be receiving unemployment insurance benefits after all—and that his case had sparked landmark legislation. Said Mclnnis: “It feels pretty good.”
The speed with which Mclnnis’s case was resolved reflected the widespread sympathy surrounding the circumstances. Villeneuve died at 30 from a brain tumor, eight months into her pregnancy. Doctors at Victoria Hospital in London kept her artificially alive on a support system long enough to deliver her baby by caesarean section. On Nov. 22 Mclnnis applied for benefits— but officials told him that they had to comply with the law. Although the Unemployment Insurance Act has allowed benefits for adoptive single fathers since 1983, it makes no provisions for natural fathers.
Encouraged by supporters, Mclnnis took his case to Kitchener lawyer Timothy Flannery, who on Jan. 27 launched an appeal to the Unemployment Insurance Commission on the grounds that Uic’s refusal to pay benefits violated the Charter of Rights and Freedoms. On Feb. 2, after reviewing the case, Employment and Immigration Minister Benoît Bouchard announced in the Commons that he planned to introduce a bill that would ensure benefits for Mclnnis and fathers in similar circumstances.
Spokesmen from Bouchard’s ministry said that they anticipate a swift passage of the bill, expected to be tabled within a few weeks. Indeed, the only controversy surrounding the bill is that it may be too narrow in scope. But even its critics say that they hope it will serve as a catalyst in broadening the base of parental-rights legislation. Meanwhile, as Mclnnis awaits his first cheque—maximum benefits are $339 per week over a period of 15 weeks—he confidently feeds, bathes and changes baby Loretta in his two-bedroom apartment. Father and daughter, supported by welfare and private donations, are both doing well. And Loretta now weighs in at a healthy 10 lb.
Mary McIver
Pub. Date February 15, 1988
Entities that make taxable supplies are entitled to claim input tax credits. An "exempt" supply however is not a taxable supply as they are not eligible for credits. Registration for G.S.T. purposes however is still required unless you are deemed to be a "small supplier." In 1996 if supplies due or paid in four calendar quarters immediately preceding the current quarter did not exceed $30,000.00 (exclusive amounts paid out from games of chance or prizes or have gross revenues of less than $75,000.00) you were a small supplier. Threshold tests are performed quarterly and zero related supplies are included. This status is not available to a non-resident. These limits were increased to $50,000.00 quarterly and $250,000.00 for gross revenues on April 23, 1996. Goodwill is also excluded in the valuation. Each division of a corporation is eligible for the small supplier threshold of $50,000.00 if it can be separately identified by reference to its location or nature of its activities and maintains separate books and records and accounting. An exception to charities allows for receipt of $250,000.00 or less in gross revenue in either of its two previous fiscal years. Under this test a charity is not required to determine which of its supplies are taxable and which are exempt. There is no blanket exemption for non-profit organizations unless it qualifies under general exemptions or the supply is an exempt supply. Registered charities are exempt unless they appear in Section II, Schedule V of the Act. This does not extend to supplies of real property, Zero rated services or property, property or a service made by the charity, non-capital property used in commercial activities, and commercial activities of the charity.
NOT FOR PROFIT ORGANIZATIONS
Within the Income Tax, (149)(1), there is an exemption for various organizations from income tax. Included among these is the non-profit organization. A not for profit organization can be in the form of an unincorporated association, a not for profit corporation or even a business corporation (with restricted share provisions). In Ontario, those that do incorporate will incorporate a non share corporation under either the Ontario Corporations Act or the Canada Corporations Act.
Depending on the objects of the not for profit organization, it is possible that the organization will be subject to both the Charities Accounting Act and the Charitable Gifts Act since the majority of non-profits are established for a public purpose. This can have implications on the ability of a non-profit to, among other things, hold land and own shares in businesses. It is important to realize that the public guardian and trustee also asserts jurisdiction over extra provincial corporations that are operating in Ontario. This includes those that are incorporated federally under the Canada Corporations Act.