PNE deals with loss of charitable status due to error in paperwork

WATCH: The PNE, drawing crowds from all over the province to take in the rides, the shows and the food. But the fair itself has been on a roller coaster ride with the Canada Revenue Agency, losing its charitable status simply due to an error in paperwork. Catherine Urquhart reports.

The PNE is dealing with the loss of its charitable status as it prepares for Saturday’s opening of their 105th annual fair.

If not rectified, the loss of its status as a charitable organization could cost them nearly a quarter of a million dollars a year.

“It’s a fickle beast, that Canadian Revenue Agency,” said Scott Hennig from the Canadian Taxpayers Federation. “You’ve got to play by their rules, or they will threaten to take away your charitable status.”

The PNE has been on a roller coaster ride with the CRA, after the federal agency revoked its charitable status over a year ago for failure to file appropriate paperwork.

READ MORE: 2015 PNE fair opens its doors with brand new attractions

In a statement, PNE spokesperson Laura Ballance writes:

“We are currently in the process of supplying CRA with information and answers to some questions that they have. We expect it could be into the fall before we have a definitive decision on this issue.”

Tweet This Click to share quote on Twitter: "We are currently in the process of supplying CRA with information and answers to some questions that they have. We expect it could be into the fall before we have a definitive decision on this issue."

While this tax issue is affecting the organization as a whole, it has little impact on the upcoming PNE fair.

They do acknowledge, however, that if it fails to regain charitable status, the fair will be out of approximately $225,000 a year.

“Given the PNE’s annual budget is in the range of $50 million the impact is significant but within the range of the ability of the corporation to sustain,” said Ballance

Tweet This Click to share quote on Twitter: "Given the PNE's annual budget is in the range of $50 million the impact is significant but within the range of the ability of the corporation to sustain," said Ballance

Whatever the outcome of the situation between the PNE and CRA, the fair will open its doors this Saturday.

Hennig stressed the need to resolve this issue, saying that the CRA needs to decide if the PNE is still a charity.

As for the PNE, he says they “need to get this thing solved. Delaying it any longer is really just going to leave people in the lurch.”