a) Expenses Captured by Spending Limits Registered Parties: Definition of “Campaign Expenditure” Registered parties are subject to ceilings on “campaign expenditure” under PPERA. “Campaign expenditure” is defined as an expense incurred by a party for election purposes that falls within Schedule 8 of PPERA, which lists such matters as advertising, publishing documents with the party’s policies, market research, and rallies or other events. The phrase “for election purposes” is defined as “for the purpose of or in connection with (a) promoting or procuring electoral success for the party ... or (b) otherwise enhancing the standing” of the party or its candidates. This includes attempts to prejudice the chances or standing of other parties or candidates. Further, an activity could be done “for election purposes” even if no express mention is made of any party or candidate. Finally, a registered party’s “campaign expenditure” does not include expenditures that are to be included in a candidate’s election expenses return, which prevents the same expenses from counting toward the spending limits of both a candidate and its party. Even if an expense falls within the definition of “campaign expenditure,” it will not count towards the party’s spending limit under PPERA unless it was incurred in the 365 days before a general parliamentary election. Candidates: Definition of “Election Expenses” The RPA limits the amount candidates may spend on “election expenses”. The definition of “election expenses” is similar to the definition of “campaign expenditure” for political parties. “Election expenses” are defined in the RPA as: “any expenses incurred at any time in respect of any matter specified in Part 1 of Schedule 4A is used for the purposes of the candidate’s election after the date when he becomes a candidate at the election”. The matters in Part 1 of Schedule 4A include advertising, distributing unsolicited material to electors, transport, public meetings, and accommodation and administration The phrase “for the purposes of the candidate’s election” is defined as “with a view to, or otherwise in connection with, promoting or procuring the candidates election,” which includes “prejudicing the electoral prospects of another candidate.” Exclusions are made for certain expenses, such as those to the publication of non-advertising material in newspapers and periodicals. Further, the value of volunteer services provided on the volunteer’s own time is not considered an election expense. b) Spending Limits Registered Parties
The Chief Electoral Officer may also establish categories of personal expenses and fix maximum amounts that may be incurred by candidates in each category. However, at the time of writing, no personal expense limits appear to exist. Electoral District Associations During the election period, electoral district associations of registered parties are prohibited from transmitting election advertising or incurring any expenses for election advertising. Electoral district associations are therefore not subject to spending limits. Regulation of Contributions to Registered Parties, Candidates, etc. The provisions discussed in this section apply to contributions to candidates, registered political parties, registered electoral district associations, nomination contestants, and leadership contestants. a) Definition of “contribution” Under the CEA, a “contribution” can be monetary or non-monetary and includes money from a candidate’s own funds. Loans are also subject to source restrictions and count towards contribution limits. The outstanding amount of a loan cannot exceed an individual’s contribution limit when combined with any other contributions made by that individual. Transfers and loans between the party, its electoral district associations, and its candidates are not included under the definition of “contribution”. Thus, the CEA targets “money being transferred from the private to the political domain”, not transfers within the political domain. Other exclusions from the definition of “contribution” include annual party membership fees of $25 or less. However, the CEA expressly includes fees for party and leadership conventions within the definition of “contribution.” The CEA also clarifies that, if a candidate or party sells tickets to a campaign fundraising event, the amount of the contribution will be the difference between the price of the ticket and its fair market value. b) Source Restrictions Contributions must come from individuals who are Canadian citizens or permanent residents. Similarly, loans are permitted only from certain financial institutions or from individuals who are Canadian citizens or permanent residents. This means corporations, unions, and other non-natural legal persons cannot donate or make loans to a political party or candidate. However, these entities can make contributions to third-party campaigners for the purpose of election advertising, as discussed further below, or engage in third-party campaigning themselves. Attempts to conceal the identity of the source of a contribution are prohibited by section 368 of the CEA. Indirect contributions and loans are also prohibited, as source restrictions and contribution limits could otherwise be circumvented. This means an individual cannot