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Political Financing, Spending, and Advertising Safeguards

The Canadian federal electoral process is governed by the Canada Elections Act (CEA), which regulates participation and activities of various political participants. The CEA sets rules and obligations to participate in the electoral process and on political financing (how entities get and spend money and report their financial transactions). These rules and obligations act as safeguards that help protect the electoral process.

The political financing regime of the CEA aims to protect the core values on which the law is built. It promotes transparency and fairness and aims to prevent the undue influence of money.

Regulating actors in the electoral process

The following political entities are subject to specific rules and obligations under the CEA.

  • Registered political parties: organizations that participate in the electoral process by endorsing one or more of their members as candidates. Their registration is ongoing, and they must fulfill annual financial and registration obligations to maintain it.
  • Registered electoral district associations: associations of members of a political party in a given electoral district (riding). Like parties, their registration is ongoing and they must fulfill annual financial and registration obligations to maintain it.
  • Candidates: the people running for election in a given electoral district; some candidates are endorsed by a political party, while others run as independents or non-affiliated candidates. Candidates' activities are regulated during election periods, though campaign activity may be regulated regardless of when it took place. They must submit financial returns following each election they participate in.
  • Nomination contestants: individuals who participate in a nomination contest with the goal of being selected as a registered party's candidate  who will run for election in a given electoral district. Regulations for nomination contestants apply during the nomination contest period, and to activities directly related to the contest. Those activities must be reported if a contestant's contributions or expenses reach $1,000.
  • Leadership contestants: a person who participates in a leadership contest with the goal of being chosen to be the leader of a registered party. Regulations for leadership contestants apply during the leadership contest period, and to activities directly related to the contest. Those activities must be reported.
  • Third parties: persons or groups that want to participate in or influence elections—they do not seek to be elected themselves but may support certain political parties or candidates. Third parties register during an election or pre-election period. The election-specific activities they engage in during these periods are regulated and must be reported.

Limiting who can make political contributions and how much they can contribute

The CEA sets rules on who is allowed to make contributions and, in most cases, how much they can contribute.

For registered parties, registered electoral district associations, candidates, nomination contestants and leadership contestants:

  • Only individuals who are Canadian citizens or permanent residents can make contributions to political entities (except third parties).
  • The amount that an eligible contributor can give to each entity is subject to a limit. Companies, unions and other groups or organizations cannot make contributions to regulated political entities.

For third parties:

  • Only Canadian citizens or permanent residents and businesses or other organizations that operate in Canada can make contributions to third parties for regulated activities.
  • A third party must not use funds from a foreign entity to pay for regulated activities or for advertising that promotes or opposes a political entity at any time.
  • There is no limit on the amount of contributions to third parties.

Activities and spending of political entities during the pre-election period

During the pre-election period (starting on June 30 of a fixed-date general election year), many activities of political entities are subject to specific rules. Here is an incomplete list:

Activities and spending of political entities during the election period

During the election period (starting on the day the election is called), many activities of political entities are subject to specific rules. Here is a non-exhaustive list:

  • All election advertising by registered parties, candidates and third parties must have a tagline stating who authorized the ads.
  • Election advertising in an electoral district is not allowed on election day before the close of all polling stations in that district.
  • Results of election surveys that have not been previously transmitted to the public in an electoral district may not be transmitted on election day before all polls close in that electoral district.
  • Expenses incurred by registered parties and candidates to directly promote or oppose a party, party leader or candidate during an election period are subject to a limit.
  • Expenses for election advertising, partisan activities and election surveys by third parties are subject to limits (in a given electoral district and overall).

Most of these rules also apply during by-elections.

Disclosure and reporting obligations of political entities

All political entities have reporting obligations that are specific to them.

Registered parties must provide a financial return* each year. They must also provide a financial return after a general election to report financial transactions specific to that election. If certain vote thresholds are met, they must also provide quarterly financial returns. Read more about registered party reporting obligations.

Registered associations must provide a financial return* each year. Read more about registered association reporting obligations.

Candidates who run in a general election or by-election must submit a financial return* after the election whether they are elected or not. The financial return must include all supporting documents and is required even if the campaign received no contributions and spent no money. Read more about candidate reporting obligations.

Nomination contestants must submit a financial return* after the contest if they have accepted contributions totalling $1,000 or more, or incurred nomination campaign expenses totalling $1,000 or more. The financial return must be accompanied by all supporting documents. Read more about nomination contestant reporting obligations.

Leadership contestants must submit a financial return* after the contest. The financial return must include all supporting documents and is required even if the campaign received no contributions and spent no money. If the leadership campaign meets certain contributions or expenses thresholds during the contest, it may also have to provide interim financial returns. Read more about leadership contestant reporting obligations.

Registered third parties must submit a financial return* after a general election or by-election. If the third party meets certain contributions or expenses thresholds during the pre-election period or election period of a general election, it may also have to provide interim financial returns. Read more about third party reporting obligations.

*A financial return provides details about the entity's inflows (money received), outflows (money sent), expenses and other aspects of their financial administration.

Responsibilities of Elections Canada

Elections Canada's mandate includes administering the political financing provisions of the CEA and monitoring to make sure that regulated entities comply with the rules. To fulfill this mandate, Elections Canada publishes information online and audits financial returns of entities.

Publishing registration and financial information

As part of its obligations, Elections Canada must publish:

Conducting audits of financial returns

As part of its responsibility to monitor compliance with electoral legislation, Elections Canada reviews all financial returns to ensure they are complete (all pages are included, signed, etc.) and filed within the prescribed deadlines.
The agency:

  • conducts risk-based audits of financial returns to ensure that the information reported respects the provisions of the CEA
  • contacts political entities for clarification or additional information during the audit
  • works with political entities to rectify omissions (e.g. an incomplete contributor name) or minor errors (e.g. expense reported in the wrong category)
  • refers a political entity's file to the Commissioner of Canada Elections* if the review or audit reveals that the entity did not or may not have complied with the CEA .

*The Commissioner of Canada Elections is the independent officer whose duty is to ensure that the CEA and the Referendum Act are complied with and enforced. Generally speaking, the Commissioner's role is to investigate complaints or allegations of wrongdoing related to a federal election and to take corrective action whenever appropriate.