| Canada: Integrity Scorecard Report > Sub-Category: Political Financing | ||
| Indicators | Score | |
| 20 | Are there regulations governing political financing? | 100 |
| 21 | Are the regulations governing political financing effective? | 63 |
| 22 | Can citizens access records related to political financing? | 67 |
Indicator and sub-Indicator Details
| 20 | Are there regulations governing political financing? | |||||||
| 20a: In law, there are regulations governing private contributions to political parties. | ||||||||
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Comments: References: Canada Elections Act ( 2000, c. 9 ) -- [ LINK ] Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e
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| 20b: In law, there are limits on individual donations to candidates and political parties. | ||||||||
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Comments: As of January 1, 2007, under the Canada Elections Act: - donations from corporations, unions or organizations of any kind to any party or any type of candidate at any time are prohbited; - the annual limit on individual donations is decreased from $5,000 to $1,100 (US$5,133 to US$1,130) total to each party; - the annual limit on individual donations is decreased from $5,000 to $1,100 combined total to each party's nomination race candidates, election candidates, and riding associations; - the annual limit on individual donations is decreased from $5,000 to $1,100 total to each election candidate who runs as an independent; - the limit on individual donations is decreased from $5,000 to $1,100 to each candidate during a campaign for the leadership of a party; - cash donations of more than $20 (US$21) are banned, to ensure that there is a written record of almost all donations. The limits increase annually on April 1 by the rate of inflation. As of June 12, 2007, under the Canada Elections Act: - secret, unlimited donations of money, property or services made directly to candidates in federal elections are banned, and almost all donations of more than $500 (US$513) are required to be disclosed to the Chief Electoral Officer within four months after each election (in the past, unlimited donations were allowed and did not have to be disclosed as long as the candidate did not use the donation for their campaign). However, secret, unlimited donations of money, property or services are still legal to nomination race candidates, and to political party leadership race candidates, and to "trust funds" maintained by constituency associations of political parties (unlimited donations are allowed and do not have to be disclosed as long as the candidate or riding association do not use the donation for an election campaign). References: Canada Elections Act ( 2000, c. 9 ) -- [ LINK ] Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e
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| 20c: In law, there are limits on corporate donations to candidates and political parties. | ||||||||
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Comments: As of Jan. 1, 2007, under the Canada Elections Act, donations from corporations, unions or organizations of any kind to any party or any type of candidate at any time are prohbited. As of June 12, 2007, under the Canada Elections Act: - secret, unlimited donations of money, property or services made directly to candidates in federal elections are banned, and almost all donations of more than $500 (US$513) are required to be disclosed to the Chief Electoral Officer within four months after each election (in the past, unlimited donations were allowed and did not have to be disclosed as long as the candidate did not use the donation for their campaign). However, secret, unlimited donations of money, property or services are still legal to nomination race candidates, and to political party leadership race candidates, and to "trust funds" maintained by constituency associations of political parties (unlimited donations are allowed and do not have to be disclosed as long as the candidate or riding association do not use the donation for an election campaign). References: Canada Elections Act ( 2000, c. 9 ) -- [ LINK ] Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e
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| 20d: In law, there are limits on total political party expenditures. | ||||||||
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Comments: The limits are based on the number of voters in a constituency, and increase annually on April 1 by the rate of inflation, and are approximately $1 (US$1) per voter. References: Canada Elections Act ( 2000, c. 9 ) -- [ LINK ] Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e
Peer Review Comments: As Election Canada states, limits to expenditures incurred by third parties from April 2006 to March 2007 were as follows:: - Limit on Election Advertising Expenses: $175,800 - Limit on Expenses for Notice of Nomination Meetings: 1% limit - Limit for Nomination Campaign Expenses: 20%
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| 20e: In law, there are requirements for disclosure of donations to political candidates and parties. | ||||||||
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Comments: As of June 12, 2007, under the Canada Elections Act: - secret, unlimited donations of money, property or services made directly to candidates in federal elections are banned, and almost all donations of more than $500 (US$513) will have to be disclosed to the Chief Electoral Officer within 4 months after each election (in the past, unlimited donations were allowed and did not have to be disclosed as long as the candidate did not use the donation for their campaign). However, secret, unlimited donations of money, property or services are still legal to nomination race candidates, and to political party leadership candiates (unlimited donations are allowed and do not have to be disclosed as long as the candidate does not use the donation for their campaign). References: Canada Elections Act ( 2000, c. 9 ) -- [ LINK ] Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e
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| 20f: In law, there are requirements for the independent auditing of the finances of political parties and candidates. | ||||||||
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Comments: Elections Canada has the power to audit candidates' finances, but not parties' finances, and given that the parties hire their own auditors, their actual, effective independence is open to question. References: Canada Elections Act ( 2000, c. 9 ) -- [ LINK ]
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| 20g: In law, there is an agency or entity that monitors the political financing process. | ||||||||
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Comments: References: Elections Canada -- [ LINK ]
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| 21 | Are the regulations governing political financing effective? | |||||||
| 21a: In practice, the limits on individual donations to candidates and political parties are effective in regulating an individual's ability to financially support a candidate or political party. | ||||||||
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Comments: As of June 12, 2007, under the Canada Elections Act: - secret, unlimited donations of money, property or services made directly to candidates in federal elections are banned, and almost all donations of more than $500 (US$513) are required to be disclosed to the Chief Electoral Officer within four months after each election (in the past, unlimited donations were allowed and did not have to be disclosed as long as the candidate did not use the donation for their campaign). In addition, spending by third party (non-political party) groups on paid advertising that supports a political party or candidate, or supports the platform of a political party or candidate, is limited during election campaign periods to $172,400 (US$176,990) annually, and $3,400 (US$3,490) within the geographical bounds of any constituency association (the limits increase annually on April 1st by the inflation rate). However, secret, unlimited donations of money, property or services are still legal to nomination race candidates, and to political party leadership race candidates, and to "trust funds" maintained by constituency associations of political parties (unlimited donations are allowed and do not have to be disclosed as long as the candidate or riding association do not use the donation for an election campaign). In addition, loans to political parties, constituency associations and candidates are not limited, and only political parties are required under the Canada Elections Act to disclose the amount and terms of loans. In between election campaign periods, there are no limits on spending by third parties (non-political parties) in direct or indirect support of political parties and/or constituency associations, and the limits on third party advertising that apply during election campaign periods do not apply during political party leadership campaign periods. References: Democracy Watch's April 2006 analysis of Bill C-2, the "Federal Accountability Act": [ LINK ]
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| 21b: In practice, the limits on corporate donations to candidates and political parties are effective in regulating a company's ability to financially support a candidate or political party. | ||||||||
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Comments: As of June 12, 2007, under the Canada Elections Act: - secret, unlimited donations of money, property or services made directly to candidates in federal elections are banned, and almost all donations of more than $500 (US$513) are required to be disclosed to the Chief Electoral Officer within 4 months after each election (in the past, unlimited donations were allowed and did not have to be disclosed as long as the candidate did not use the donation for their campaign). However, secret, unlimited donations of money, property or services are still legal to nomination race candidates, and to political party leadership race candidates, and to "trust funds" maintained by constituency associations of political parties (unlimited donations are allowed and do not have to be disclosed as long as the candidate or riding association do not use the donation for an election campaign). Donations of volunteer labor are not tracked (identity of volunteer and number of hours volunteered) nor disclosed to Elections Canada, allowing corporations, unions and other organizations to give unpaid leave to employees to volunteer for political parties and candidates, but then pay them when the return for the time they took to volunteer. In addition, loans to political parties, constituency associations, and candidates are not limited, and only political parties are required under the Canada Elections Act to disclose the amount and terms of loans. References: Democracy Watch's April 2006 analysis of Bill C-2, the "Federal Accountability Act" -- [ LINK ]
Peer Review Comments: according to Democracy Watch, secret donations are still effectively allowed because the federal Conservatives are not complying with the UN Convention Against Corruption nor other international standards that require the monitoring of the bank accounts of all public officials who have decision-making power (for details, go to: Democracy Watch's December 8, 2006 news release).
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| 21c: In practice, the limits on total party expenditures are effective in regulating a political party's ability to fund campaigns or politically-related activities. | ||||||||
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Comments: Elections Canada (the federal regulatory agency) does not have the power to audit political party finances, and parties choose their own auditors, and as a result it is open to parties to hide excess spending. References: Democracy Watch's analysis of Bill C-2, the "Federal Accountability Act": [ LINK ]
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| 21d: In practice, when necessary, an agency or entity monitoring political financing independently initiates investigations. | ||||||||
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Comments: Before 2005, the practice of Elections Canada was to neither confirm nor deny the existence of any investigations. Media attention about this practice in 2004-2005 led Elections Canada to begin to announce whether it had launched an investigation, but the announcements made in 2005 were all investigations of opposition parties. In addition, Elections Canada does not have the power to audit the finances of political parties nor of riding associations, which limits its ability to initiate or complete investigations in the area of political finances. References: Elections Canada -- [ LINK ] Statutory reports section on following Elections Canada Web page: [ LINK ])=e&textonly=false Commissioner of Canada Elections on following Elections Canada Web page: [ LINK ])=e Democracy Watch's analysis of Bill C-2, the "Federal Accountability Act": [ LINK ]
Peer Review Comments: In 2007, Conservative Party was investigated by Election Canada for depositing, and after transfering funds from the candidates to the national head to the party for regional publicity, permitting the party to spend more than the amount permited. As a consequence, Elections Canada refused to rembourse to aaround 40 candidates the equivalent of 1.05 millions of dollars en electoral spending. Those spendings should have been covered by the nationall head of the party.
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| 21e: In practice, when necessary, an agency or entity monitoring political financing imposes penalties on offenders. | ||||||||
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Comments: Elections Canada usually only requires that illegal donations (usually donations above the legal limits) be returned, and does not usually prosecute nor penalize violators of the law. References: Elections Canada -- [ LINK ] Statutory reports section on following Elections Canada Web page: [ LINK ])=e&textonly=false Commissioner of Canada Elections on following Elections Canada Web page: [ LINK ])=e Democracy Watch's analysis of Bill C-2, the "Federal Accountability Act": [ LINK ]
Peer Review Comments: No offenders were penalized under these laws (i.e., federal and provincial).
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| 21f: In practice, contributions to political parties and candidates are audited. | ||||||||
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Comments: Political parties and constituency associations and candidates are required by the Canada Elections Act to provide their audited annual (parties and riding associations) and campaign (candidates) financial statements to Elections Canada, but Elections Canada does not have the power under the Act, nor the mandate, to audit the parties' and riding associations' statements, and does not audit all candidates' statements. As a result, it is very possible for parties, associations and candidates to submit an inaccurate financial statement. References: Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e Statutory reports section on following Elections Canada Web page: [ LINK ])=e&textonly=false Democracy Watch's analysis of Bill C-2, the "Federal Accountability Act": [ LINK ]
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| 22 | Can citizens access records related to political financing? | |||||||
| 22a: In practice, political parties and candidates disclose data relating to financial support and expenditures within a reasonable time period. | ||||||||
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Comments: Political parties are required by the Canada Elections Act to disclose their donations quarterly, but their expenses only annually. Constituency associations are required by the Canada Elections Act to disclose their donations and expenditures only annually. Nomination race and election candidates are required by the Canada Elections Act to disclose their donations and expenditures only four-six months after the day of the nomination vote, or election vote. Political party leadership race candidates are required by the Canada Elections Act to disclose their donations 30 days before the date of the party leadership vote, and then every week during the last 30 days leading up to the vote. As of June 12, 2007, under the Canada Elections Act: - secret, unlimited donations of money, property or services made directly to candidates in federal elections are banned, and almost all donations of more than $500 (US$513) are required to be disclosed to the Chief Electoral Officer within 4 months after each election (in the past, unlimited donations were allowed and did not have to be disclosed as long as the candidate did not use the donation for their campaign). However, secret, unlimited donations of money, property or services are still legal to nomination race candidates, and to political party leadership race candidates, and to "trust funds" maintained by constituency associations of political parties (unlimited donations are allowed and do not have to be disclosed as long as the candidate or riding association do not use the donation for an election campaign). In addition, loans to political parties, constituency associations, and candidates are not limited, and only political parties are required under the Canada Elections Act to disclose the amount and terms of loans. References: Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e Democracy Watch's April 2006 analysis of Bill C-2, the "Federal Accountability Act": [ LINK ]
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| 22b: In practice, citizens can access the financial records of political parties and candidates within a reasonable time period. | ||||||||
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Comments: Political parties are required by the Canada Elections Act to disclose their donations quarterly, but their expenses only annually. Constituency associations are required by the Canada Elections Act to disclose their donations and expenditures only annually. Nomination race and election candidates are required by the Canada Elections Act to disclose their donations and expenditures only four-six months after the day of the nomination vote, or election vote. Political party leadership race candidates are required by the Canada Elections Act to disclose their donations 30 days before the date of the party leadership vote, and then every week during the last 30 days leading up to the vote. As of June 12, 2007, under the Canada Elections Act: - secret, unlimited donations of money, property or services made directly to candidates in federal elections are banned, and almost all donations of more than $500 (US$513) are required to be disclosed to the Chief Electoral Officer within 4 months after each election (in the past, unlimited donations were allowed and did not have to be disclosed as long as the candidate did not use the donation for their campaign). However, secret, unlimited donations of money, property or services are still legal to nomination race candidates, and to political party leadership race candidates, and to "trust funds" maintained by constituency associations of political parties (unlimited donations are allowed and do not have to be disclosed as long as the candidate or riding association do not use the donation for an election campaign). In addition, loans to political parties, constituency associations, and candidates are not limited, and only political parties are required under the Canada Elections Act to disclose the amount and terms of loans. References: Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e Democracy Watch's April 2006 analysis of Bill C-2, the "Federal Accountability Act": [ LINK ]
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| 22c: In practice, citizens can access the financial records of political parties and candidates at a reasonable cost. | ||||||||
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Comments: Elections Canada maintains online registries of donations that are updated reasonably soon after data is received from political parties, constituency associations and candidates. The registries are fully searchable for no cost. References: Elections Canada (federal regulatory agency) Web page re: law on political finances -- [ LINK ])=e
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