Liberals Circumvent Election Financing Laws

[Keepitsimple]

Liberals are allegedly holding a fundraising cocktail party that includes an "auction", the details of which are posted on Stephen Taylor's Blog at http://www.stephentaylor.ca/

The invitational flyer includes the following comment with regards to the auction:

The sky's the limit during this auction!

A successful bid is not a political contribution and is not eligible for a receipt for income tax purposes. Your successful bid will not affect your annual political contribution limit of $1100. As such, individuals, partnerships, corporations, and associations are free to bid as high as they want. We greatly appreciate your support for this fund raising activity.

Those Liberals are a slippery bunch. As Stephen Taylor says:

It would appear that the Liberals claim that the federal Elections Act doesn't apply to this kind of political fundraising because the Liberals say so.

The Liberals used to "raise money" outside of the oversight of the Elections Act by giving hockey tickets to Quebec advertising executives. It's good to see that if the Liberals go through with this fundraiser as described, they are opening up the process outside of that exclusive network to their Ottawa membership. If so, it's too bad for Canadians that the Liberals think that circumventing the law is different from breaking it.

[jdobbin]

Liberals are allegedly holding a fundraising cocktail party that includes an "auction", the details of which are posted on Stephen Taylor's Blog at http://www.stephentaylor.ca/

The invitational flyer includes the following comment with regards to the auction:

Is this sort of like the "in and out" money that the Tories used during the election that they say it is legal?

[Wild Bill]

Is this sort of like the "in and out" money that the Tories used during the election that they say it is legal?

Are you saying two wrongs make it right? At least for Liberals?

I say if both or either has contravened the Elections Act then bust 'em!

Don't use one as the excuse for the other!

[jdobbin]

Are you saying two wrongs make it right? At least for Liberals?

I say if both or either has contravened the Elections Act then bust 'em!

Don't use one as the excuse for the other!

I'm just saying that the loopholes in the system are enormous. I don't think this fundraising idea contravenes the law though.

If the Tories think it is a problem, tell them to amend the legislation. They seemed to think the "in and out" thing they did in the election was okay. Elections Canada disagrees.

[Keepitsimple]

I'm just saying that the loopholes in the system are enormous. I don't think this fundraising idea contravenes the law though.

If the Tories think it is a problem, tell them to amend the legislation. They seemed to think the "in and out" thing they did in the election was okay. Elections Canada disagrees.

The "in and out" does not relate to fundraising. The Conservatives have done tremendous work to effectively use grass-roots funsraising at the individual level. If anything, that issue relates to how advertising money was distributed at the National and Riding levels.....and I agree that if that was the case, it should be tightened up. The Liberals on the other hand, traditionally have relied on large donations from Corporations. This "fundraiser" seems to flout the ethics of the Accountability Act which bans donations from Corporations and Organizations - precisely the target of their "Auction". I'm sure the other parties will watch closely to see if a BBQ is auctioned off for $10,000 or something similar.....after all, they said "the sky's the limit".

Edited February 10, 2008 by Keepitsimple

[jdobbin]

The "in and out" does not relate to fundraising. The Conservatives have done tremendous work to effectively use grass-roots funsraising at the individual level. If anything, that issue relates to how advertising money was distributed at the National and Riding levels.....and I agree that if that was the case, it should be tightened up. The Liberals on the other hand, traditionally have relied on large donations from Corporations. This "fundraiser" seems to flout the ethics of the Accountability Act which bans donations from Corporations and Organizations - precisely the target of their "Auction". I'm sure the other parties will watch closely to see if a BBQ is auctioned off for $10,000 or something similar.....after all, they said "the sky's the limit".

It's true that the Liberals have relied on corporations moreso than individuals. We'll see in the results of the next quarter whether they have made any progress in that regard.

I honestly think that the $1,100 limit on fundraising is excessive and it too is full on loopholes because it allowed some people to donate 1,100 to each candidate of the party of their choice.

[Keepitsimple]

It's true that the Liberals have relied on corporations moreso than individuals. We'll see in the results of the next quarter whether they have made any progress in that regard.

I honestly think that the $1,100 limit on fundraising is excessive and it too is full on loopholes because it allowed some people to donate 1,100 to each candidate of the party of their choice.

While I don't doubt that there might be creative ways to donate a few more dollars, it would appear that you'd have to work pretty hard to do it. The "spirit" if not the rules of the Accountability Act seem pretty clear. Even if you can find a way to do it, everything over $200 has to be reported so it would appear that the days of massive $50,000 donations from Corporations and individuals are over. Having your wife and children make donations is one way - but they are subject to the limitations as well.

The Federal Accountability Act which received Royal Assent on December 12, 2006 reforms the financing of political parties and candidates in Canada, changing the rules for political contributions to prevent influence being bought by political donations and to level the playing field for individual contributors.

Reforms to political financing include:

new limits on individual donations to parties and candidates

a ban on contributions from corporations, unions and organizations to parties and candidates

a longer period to prosecute violations under the Canada Elections Act.

Effective January 1, 2007 the following rules for political contributions under the Canada Elections Act come into force.

Who Can Make Political Contributions

You must be a Canadian citizen or a permanent resident of Canada to make a political contribution to a registered political entity.

Corporations, trade unions, associations and groups may not make political contributions.

An employer can give an employee a paid leave of absence during an election period to allow the employee to be a nomination contestant or a candidate without the leave being considered a political contribution.

Limits on Political Contributions for Individuals

The amount an individual may contribute to a registered political party has been reduced to $1,100 a calendar year (adjusted for inflation annually on April 1).

A distinct $1,100 annual limit has been put on the total an individual may contribute to the registered associations, the nomination contestants and the candidates of a registered political party.

(The total is adjusted for inflation annually on April 1.)

The amount an individual may contribute to an independent candidate in a particular election has been reduced to $1,100 (adjusted for inflation annually on April 1).

The amount an individual may contribute to a leadership in a particular leadership contest has been reduced to $1,100 (adjusted for inflation annually on April 1).

A nomination contestant or a candidate may make an additional $1000 in total per election to his or her own campaign.

A party leadership contestant may make an additional $1000 contribution in total per contest to his or her own campaign.

Cash contributions of more than $20 to registered political entities have been banned.

You cannot make a political contribution with money, property or services that were given to you for that purpose.

Income Tax Credits for Political Contributions

Tax credits for political contributions are available at the following rates: 75 percent of the first $400; 50 percent of the next $350; and 33 1/3 percent of an amount over $750.

Tax credits are not given for donations to leadership or nomination contestants, or to unregistered parties and their electoral district associations.

Disclosure of Political Contributions

All political contributions of more than $20 must be receipted and reported.

Political contributions of more than $200 made to registered parties, registered electoral district associations, leadership contestants and candidates must be reported to Elections Canada by the recipient and become matters of public record.

Political contributions of more than $200 made to nomination contestants are also reported to Elections Canada and become a matter of public record if the contestant receives contributions of $1,000 or more, or incurs expenses of $1,000 or more.

Link: http://canadaonline.about.com/od/federalel...ntributions.htm

[jdobbin]

While I don't doubt that there might be creative ways to donate a few more dollars, it would appear that you'd have to work pretty hard to do it. The "spirit" if not the rules of the Accountability Act seem pretty clear. Even if you can find a way to do it, everything over $200 has to be reported so it would appear that the days of massive $50,000 donations from Corporations and individuals are over. Having your wife and children make donations is one way - but they are subject to the limitations as well.

So far the biggest violation of the law has been the Tories who got hit for the delegates and their fees at their convention. No other party got whacked like that.

I'd rather the Liberals took their donations from smaller contributers and they seem to be doing more of that now but is has been a painful adjustment.

I think the $1,100 limit is too low and as demonstrated by what happened at the Tory convention, it can come to bite you.

[Keepitsimple]

So far the biggest violation of the law has been the Tories who got hit for the delegates and their fees at their convention. No other party got whacked like that.

I'd rather the Liberals took their donations from smaller contributers and they seem to be doing more of that now but is has been a painful adjustment.

I think the $1,100 limit is too low and as demonstrated by what happened at the Tory convention, it can come to bite you.

You're right about the Tory delegate fees being a way to circumvent rules....but that was three years ago at their leadership convention. This Liberal Fundraising effort is happening right now. In the whole scheme of things, this may be a tempest in a teapot - but you'd think that all parties would have learned that you not only have to do things fairly, you have to be perceived as doing things fairly.