Canada Elections Act — E-2.01 521.1
Notice to party 521.1 (1) If the Commissioner has reasonable grounds to suspect that a registered party does not have as one of its fundamental purposes participating in public affairs by endorsing one or more of its members as candidates and supporting their election, the Commissioner shall, in writing, notify the party that it is required to show that that is one of its fundamental purposes. Court application (2) If, after giving the party a reasonable opportunity to show what its fundamental purposes are, the Commissioner still has reasonable grounds to suspect that the party does not have as one of its fundamental purposes the purpose described in subsection (1), the Commissioner may apply to a court described in subsection 525(1) for an order described in subsection (3). Order (3) If the court is satisfied that the party does not have as one of its fundamental purposes the purpose described in subsection (1), the court shall, by order, direct the Chief Electoral Officer to deregister the party and it may (a) direct the chief agent — or another person specified by the court — to liquidate the party’s assets; and (b) if it directs liquidation under paragraph (a), direct the financial agent of each registered association — or another person specified by the court — to liquidate the registered association’s assets. Onus on party (4) The onus of satisfying the court that one of its fundamental purposes is the purpose described in subsection (1) is on the party. Factors (5) In making its decision, the court shall consider all of the factors relevant to determining the party’s purposes, including, as applicable, the following: (a) the party’s constitution, articles of incorporation, letters patent or by-laws or any other information that may indicate those purposes; (b) the party’s political program, annual report to members, fundraising plan, advertising material and policy statements; (c) the nature and extent of the activities of the party and its registered associations and candidates, including the nature and extent of their involvement in electoral campaigns and any of their public statements in support of another political party or a candidate of another political party; (d) the funds received by the party and its registered associations and candidates, their sources and how they are used by the party, including as election expenses; (e) interactions of the party with other entities that are not recognized political parties under the laws of any province that may indicate that it is under the control, direct or indirect, of another entity or that the party is using its status as a registered party primarily for the purpose of providing financial assistance to another entity; and (f) whether the party is a non-profit entity. Exemption (6) If, in the court’s opinion, the public interest and the need to ensure fairness of the electoral process warrant it, the court may, on application, exempt the party and its registered associations from the application of subsection 127(3.3) of the Income Tax Act . If an exemption is granted, the court may impose any conditions on the activities of the party, registered association or candidate that it considers appropriate. Liquidation (7) If a chief agent, a financial agent or a person specified by the court is, under subsection (3), directed to liquidate, they shall carry out the liquidation in accordance with subsections 501(4) to (7). 2004, c. 24, s. 23