Does a strata corporation have to file an income tax return?
Yes. A strata corporation is required to file a T2 corporate income tax return for every fiscal year, even if the strata corporation does not have have to pay any income taxes. A strata corporation will also have to file a T1044 information return if any of the following conditions are met:
- the strata corporation’s rental and interest income combined exceeds $10,000 in the fiscal year;
- the strata corporation owned assets that exceeded $200,000 at the end of the prior fiscal year; or
- the strata corporation filed a T1044 information return in the prior fiscal year.
What happens if the operating budget does not pass at the annual general meeting?
Section 104 requires the Strata Corporation to prepare a new budget and to hold a special general meeting within 30 days of the annual general meeting to vote on the new budget.
At the last AGM, the strata corporation did not approve the budget for next year. Do I still have to pay strata fees? If so, how much are my strata fees?
Yes, strata fees are still due and owing. Until the new budget is approved, an owner must continue to pay to the strata corporation the same monthly strata fees that they were required to pay under the previous budget.
Our strata corporation wants to raise the annual salary of our resident caretaker by $10,000.00. Does this require a 3/4 vote?
The annual salary of a resident caretaker is an operating fund expense and therefore, it belongs in the annual budget. The annual budget must be approved by a majority vote at the annual general meeting.
Our strata corporation has money left over in the operating fund. May we give it back to the owners?
If funds are not required to meeting operating expenses in a fiscal year, a strata corporation may do one or more of the following:
- put the surplus in the contingency reserve fund;
- carry the surplus forward as a surplus in the operating fund;
- reduce the next year’s strata fees.
To do anything other than the foregoing requires a 3/4 vote of the owners.