Canadian Coast Guard Auxiliary Guideline - SAR Volunteer Tax Credit
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1 . Canadian Cast Guard Auxiliary Guideline - SAR Vlunteer Tax Credit Purpse T prvide reginal CCGA rganizatins with guideline t determine, recrd and reprt Eligible Vlunteer Hurs fr the purpse f determining the Search and Rescue Vlunteer Tax Credit eligibility fr respective members in each regin. This tax credit is a great recgnitin fr ur vlunteers wh will have the pprtunity in many cases t be reminded at least nce a year (as they d their taxes) that the Gvernment and peple f Canada appreciate their effrts. It is imprtant that we ensure that while we want t encurage everybdy t recrd and claim every apprpriate vlunteer hur, we als need t ensure that it is dne crrectly s that n member r the rganizatin as a whle is called int questin. Backgrund Infrmatin Facts Vlunteers wh perfrm in excess f 200 Eligible Hurs in a calendar year will be able t claim a $3,000 nn refundable tax credit n their persnal tax return at 15% credit rate such that they wuld receive $450 in tax savings. This credit is available fr 2014 tax year and beynd This credit is nn refundable and as such, members need t have taxable incme and tax payable in the year t benefit frm this credit. Eligible hurs include: Respnding t and being n call fr search and rescue and related emergency calls, Attending meetings held by the rganizatin, and Participating in required training related t search and rescue services. Eligible search and rescue service hurs cnsist primarily f respnding t and being n call fr search and rescue and related emergency calls, attending meetings held by the rganizatin and participating in required training related t search and rescue services. Need t prvide CRA with certificate (letter) supprting the 200 hurs if requested (i.e. if audited). Letter needs t be prvided team president r ther individual wh fulfils a similar rle.
2 Standard says that members shuld rely n the search and rescue rganizatin t determine the number f hurs f eligible search and rescue vlunteer services that they have cmpleted in the year. The applicable plicies and prcedures f the rganizatin wuld be applied in determining the number f hurs that yu were n call fr search and rescue and related emergency calls. Primary / Secndary Hurs As per CRA guidance, Other services prvided as a search and rescue vlunteer t a search and rescue rganizatin are als eligible, such as, the delivery f educatinal sessins undertaken by the rganizatin. Fr the purpse f cunting the number f hurs f eligible search and rescue vlunteer services, the number f hurs devted t the primary services described abve must exceed the number f hurs devted t ther services fr a particular rganizatin. Similarly, the CRA gave guidance t the firefighters, suggests that nn primary activities culd als be included but hurs used had t be less than the ttal f primary hurs t meet the 200 hurs requirement. As such, members need a minimum f 101 hurs f Primary Service and rest (99 hurs) can be fr secndary items (i.e. Admin, meetings, maintenance, bating safety, etc.).
3 Guideline Eligible Vlunteer Hurs Time spent in the fllwing list f activities will be cnsidered Eligible Vlunteer Hurs fr the purpse f this reprting Type f Activity Primary Hurs SAR Call On Water Training Classrm Training SAR Patrl SAR Meetings On Call Duty Crew Descriptin Respnding t search and rescue and related emergency calls as a search and rescue vlunteer Participating in required training related t search and rescue services Participating in required classrm training related t search and rescue services. Examples include classrm thery lessns, first aid curses, certificatin curses, etc. Crew invlved in SAR Patrl Attending t SAR Statin r Unit meetings. These shuld be meetings directed twards the administratin f a specific SAR resurce, statin, r unit and nt cnfused with general administratin, Reginal r Natinal administratin cnsidered in Secndary Hurs belw. Participating in dedicated Duty Crew such that the crew member must attend t a SAR tasking. Examples include: Situatins whereby cmmunity statin has assigned duty crew fr perids f time (i.e. Weekends, evenings) and this crew is expected t respnd during that time. Situatins where wner / peratrs are n the water and they have advised apprpriate authrity that they are n the water and available t respnd and as such have bligatin t respnd during that perid. T cnfirm, it wuld nt include situatins whereby a crew is n standby such that the are able t respnd but dn t have t (i.e. Additinal crew in cmmunity statin wh may be receiving pages and allwed t respnd but nt required t r similar situatin in private member, wner/peratr, cmmercial fishermen situatin).
4 Type f Activity Secndary Hurs Administratin Cmmunity Event Maintenance Bating Safety Fundraising Descriptin Time devted t assisting the SAR Unit, Regin, r Natinal rganizatin with general administratin including meetings, plicy creatin, training planning. Participating in a cmmunity event with the purpse f prmting the rganizatin and water safety Participating in maintenance f a SAR equipment r a dedicated SAR vessel Participating in a Bating Safety r SAR Preventin activity including bat shws, vessel safety surveys, pleasure craft inspectins, educatin seminars. Participating in fundraising activities at lcal level t supprt the peratin f SAR resurce Supprting Vlunteer Hurs A. Supprt - It is f critical imprtance that in every instance, the cllecting and reprting f vlunteer hurs is cntrlled such that the persn certifying the hurs has the ability t supprt the hurs reprted t the Canada Revenue Agency shuld they enquire r audit. B. Certifier Each Statin, Unit, r rganizatin needs t identify apprpriate authrity that is able t certify and issue letters f supprt fr hurs incurred as defined abve. Fr whatever methd f recrding hurs that is utilized, it is necessary fr the persn certifying at yearend t be able t supprt the hurs with evidence. These peple need t be aware that they are prviding evidence t supprt a tax credit and as such it needs t be treated with the utmst diligence. Any reprting f illegitimate hurs in particular culd be cnsidered nn-cmpliance with the law. Fr cmmunity statins, this persn is likely t be a Statin leader r designate. Fr thers, the regin can determine the mst apprpriate persn in each circumstance such as the wner/peratr, reginal vlunteer managers, reginal paid staff, r thers designated. C. Ntify Crew As per abve, all crew need t be ntified in the certificate that these hurs reprted are als their respnsibility t ensure that it is true reflectin f the vlunteer hurs given in the year. It is their persnal tax return that this credit will be applied t and knwingly prviding false infrmatin culd lead t audit, re-assessment, r legal prceedings against them. D. Tracking It is anticipated that fr regins, statins, r ther SAR resurces using the SAR Management System (SMS), that this system will be able t be used t recrd and supprt the hurs nted abve. In cases where this system is nt available r apprpriate, it is required that anther system is utilized t accumulate and supprt the hurs such as spreadsheets, databases, web prgrams, ther sftware r a paper based methd.
5 E. Timely Reprting The persn(s) respnsible fr prviding the necessary supprting dcument shuld d s n later than the end f February each year. This is cnsistent with ther tax dcument reprting deadlines (ie. T4, RRSP, etc.) and will allw the eligible member t cmplete their tax return in a timely manner. Other issues Vlunteer perceptin It is clear that a prtin f the membership will nt be able t achieve 200 hurs a year which may have the unintended cnsequence f members wh are upset r discntent. It needs t be made clear t these members that their rganizatin significantly appreciates all the vlunteer effrts we receive, big r small, and that the tax credit is simply an additinal frm f recgnitin and supprt fr the mst significantly active members. This threshld has been set by gvernment. This additinal recgnitin f certain members is an added and unexpected benefit fr thse wh all vlunteer withut expectatin f any return. Inapprpriate vlunteering It has been raised that certain members f the public might see use ur rganizatins as a methd t gain a tax credit and save them mney. We see this as remte likelihd especially if all plicies herein are fllwed as the 200 hur requirement is significant and a very lw return n investment fr anyne. Hwever, it is wrth nting t the regins that it will be up t them t cntinue with apprpriate recruiting, screening, and management f applicants t ensure that members are nt jining fr the wrng reasn.
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