TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

UNRELATED BUSINESS [1 record]

Record 1 1999-10-07

English

Subject field(s)
  • Taxation
CONT

The Income Tax Act prohibits charities from engaging in "unrelated business activities". This is usually interpreted to mean that charities cannot engage in business activities unrelated to their objects, or that do not help achieve their objects.

CONT

The Income Tax Act recognizes a distinction between the "related" and "unrelated" business activities of charities. The distinction, as we shall see, is poorly defined at the margins, but the core idea is clear: a business is related if it directly advances the goals of the charity. The sales outlets of Goodwill Industries are a good example. An unrelated business, conversely, is one that does not directly advance the charitable purpose.

Key term(s)
  • unrelated business activities

French

Domaine(s)
  • Fiscalité
DEF

Activité commerciale étrangère aux fins d'un organisme de bienfaisance.

OBS

S'oppose à «activité commerciale complémentaire».

Spanish

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