Elections Canada Refuses to Collect

OTTAWA: The Canadian Taxpayers Federation (CTF) has learned that federal political parties owe taxpayers millions of dollars for over-payments of rebates, yet Elections Canada refuses to collect. CTF Federal Director, Kevin Gaudet, said “this is a massive over-payment of a political subsidy and it needs to be collected from all political parties that owe it.”

The CTF has obtained a copy of a lawsuit filed Monday in Toronto Superior Court by the Conservative Party of Canada (CPC) against Elections Canada. The CPC argues they have been unjustly over-paid $591,117.40 in election reimbursements by Elections Canada for GST expenses for which the CPC was ultimately reimbursed by Revenue Canada for the 2004 and 2006 elections. Elections Canada reimburses political parties 50% for election expenses.

The court documents fail to calculate the impact of the 2008 election. Elections Canada has refused to accept the return of this over-payment.

In its legal filings the CPC argues it was reimbursed its political subsidy based on total GST expenses, even though as a non-profit organization, Revenue Canada also reimburses them for the same. According to an independent analysis by KPMG this amounts to a violation of Canada’s accounting rules under Generally Accepted Accounting Practices (GAAP). Further, Elections Canada in 1996 issued a letter outlining this clear approach to accounting for the GST.

The documents reveal that the CPC has made efforts to repay this amount owing to Elections Canada, which has, so far, refused to accept the money arguing doing so would violate the goal of “create[ing] a level playing field for political parties.”

“It is ridiculous that a government body would refuse to take taxpayers money back, when it’s clear they have made a mistake,” continued Gaudet. Elections Canada should require all political parties to pay back this over-payment.”

All political parties are eligible for the same quasi non-profit status and would have received similar over-payments.

The CTF has long argued against any kind of government subsidies for political parties.

A complete copy of the legal documents may be found HERE. Elections Canada has not yet filed a response.