(Response to question raised by the Honourable Diane F. Griffin on February 21, 2022)

The government continuously monitors Canada’s insolvency laws to ensure that they remain responsive to the needs of Canadians and marketplace developments.

With respect to the treatment of Registered Education Savings Plans (RESPs) under the Bankruptcy and Insolvency Act, it is important to note that the RESP features that provide flexibility in case a child does not pursue further studies also increase the risk that an RESP could shelter assets from creditor claims in a bankruptcy, without ensuring that RESP funds would benefit the child. RESPs as currently structured are not “locked in” – the subscriber can access contributions at any time, and RESP funds can be used for non-educational purposes. As part of our monitoring of insolvency laws, we will continue to look for any changes in RESPs, such as a lock-in mechanism, that could allow for an equitable balancing of interests among creditors and RESP beneficiaries, while preserving the integrity of Canada’s insolvency regime.

(Response to question raised by the Honourable Tony Loffreda on March 24, 2022)

The disbursement quota (DQ) is determined as 3.5% of a charity’s assets that are not used directly in charitable activities or administration, subject to certain thresholds. These assets are reported at line 5900 of Form T3010, but line 4140 can also be used to estimate these assets.

An analysis of 2019 T3010 data found that of the 14,918 charities that appeared to meet the asset thresholds, approximately 82% met their DQ requirement. However, these statistics are only estimates, as the data provided by charities in their Form T3010 has not necessarily been verified for accuracy by the CRA. Generally, an audit would be required to determine whether a charity is subject to, and met, the DQ requirement.

Some charities may not meet their DQ for various reasons – for example, they may experience operational difficulties which limit their ability to expend funds. Charities can request a DQ reduction if they experience circumstances beyond their control and have exhausted other means to make up a DQ shortfall. On average, the CRA receives three of these requests per year.

(Response to question raised by the Honourable Rosemary Moodie on April 5, 2022)

Within the first year of the Disaggregated Data Action Plan, Statistics Canada released new data disaggregated by specific racialized groups, Indigenous persons and women by improving and expanding data collection of key surveys, including the Labour Force Survey, Canadian Community Health Survey, General Social Survey and the new Canadian Survey on Business Conditions. Population projections for Indigenous persons and racialized groups have been developed for the next several decades. Groups have been engaged to develop options for appropriately collecting and disseminating data on interactions with police. Based on 2021 Census data, Statistics Canada released its first comprehensive profile of the gender-diverse population on April 27. Access to all the data is provided through the enhanced website of Statistics Canada’s Gender, Diversity and Inclusion Statistics Hub. The Disaggregated Data Action Plan allows for a deeper understanding of the socioeconomic conditions and lived experiences of sub-populations and its information is already being taken into account in decision making.