The Conservative party may find itself unable to field a local candidate in the next federal election as a result of missing a key filing of financial data to elections Canada, but only if the infraction is prosecuted as a criminal offence.
Each political party and its local Electoral District Association (EDA) is responsible not just for filing financial data with Elections Canada after each election, but also for yearly financial filings. Failure to do so could result in a fine for the EDA's financial agent (accountant) up to possible deregistration of the EDA.
The Federal Conservative Party Association filed an application in the Ontario Superior Court of Justice in Sault Ste. Marie on March 13 seeking an extension from Elections Canada after the association claims the Sault Ste. Marie EDA's financial agent missed a key filing deadline for a financial transactions return.
"The applicant, through its treasurer, prepared all materials required but, as a result of an oversight, did not submit its financial transactions return to the respondent within the required time frame," said Steven Shoemaker, of Wishart Law Firm, solicitor for the Federal Conservative Party Association. "The Applicant did not become aware of the accountant's failure to file the financial transactions return until after the window permitted for an extension."
An affidavit by Josh Armstrong, who served as office agent in Sonny Spina's campaign, will be presented at a future hearing.
In the application, the Federal Conservative Party Association (the Applicant) is asking for an order from the court to extend its deadline to file a financial transactions return, which the Sault Ste. Marie EDA did not present to Elections Canada (the Respondent) by its deadline.
Some reporting deadlines are occasionally missed by volunteer-run EDA, said Sarah Fischer, director of communications for the Conservative Party of Canada in an email.
"This court process is the precise method outlined by the Canada Elections Act as a remedy to maintain full compliance as an EDA," said Fischer.
The application is still making its way through the court.
Matthew McKenna, spokesperson for Elections Canada, told SooToday if no return is provided or it is provided after the due date, an association may face penalties under the Act.
"The Act provides a process after which the Chief Electoral Officer has the power to deregister an association which has failed to file its return," said McKenna in an email.
McKenna notes it is the Commissioner of Canada Elections, not Elections Canada, that determines whether an enforcement measure should be pursued, and what the appropriate enforcement measure, if any, should be.
Penalties under the Act for failing to file or failing to file on time could also include fines of not more than $50,000 or imprisonment for a term of not more than five years, or both.
"Any such penalty would only be available after a prosecution for a criminal offence which would need to be initiated by the Commissioner of Canada Elections," noted McKenna.
The commissioner can also pursue alternative enforcement measures, including issuing administrative monetary penalties (AMPs) for certain violations, including for non-filing or late filing of financial returns.
"AMPs seek to promote compliance with this Act, and not to punish," said McKenna. "The maximum administrative monetary penalty for a violation is $1,500, in the case of an individual, and $5,000, in the case of a corporation or an entity."
In June, the Commissioner of Canada Elections imposed AMPs against 12 financial agents who failed to provide the Chief Electoral Officer with the Registered Association’s financial transaction return and other required documents within six months of the association’s deregistration.
Last year, Douglas Moseley, the financial agent for the 2019 People's Party of Canada candidate for Sault Ste. Marie, was fined $500 by the Commissioner of Canada Elections for failing to provide the candidate Amy Zuccato's electoral campaign return and required documents outlining the financing and expenses for the candidate's electoral campaign to the Chief Electoral Officer.