Canada delists charity body funding LTTE
The Canada Revenue Agency (CRA) Saturday announced that it has
revoked the charitable registration of Ottawa-area charity, Tamil
Refugee-Aid Society (TRAS) effective July 17, 2010. The agency is
responsible for administering tax laws for the Government of Canada and
for most provinces and territories.
According to the findings, the charity has provided funds including
$713,000 to an organization, which the CRA believes was operating as
part of the support network for the Liberation Tigers of Tamil Eelam
(the LTTE), a listed entity under the United Nations Suppression of
Terrorism Regulations and the Criminal Code of Canada.
The Agency has issued a notice last month of its intention to revoke
the charitable registration of the Society saying that on the basis of
an audit conducted, it has concluded that the Society has ceased to
comply with the requirements of the Income Tax Act for its continued
registration.
The CRA stated that in that the charity failed to maintain adequate
control and direction over the use of its funds; improperly issued tax
receipts on behalf of third parties; and provided funding to
non-qualified donees outside Canada.
The CRA said its audit also indicated that fundraising conducted
under the Society’s auspices involved an individual who has been
convicted in the United States of conspiring to provide material support
to the LTTE.
In addition, the Society’s liaison officer for Sri Lanka was named in
documents filed with the Federal Court of Canada as a contact for area
sales coordinators with the World Tamil Movement, also a listed entity
under the Criminal Code of Canada because of its ties to the LTTE.
Once its registration revoked, a charity cannot issue donation
receipts for income tax purposes and is no longer a qualified donee
under the Income Tax Act. The organization is no longer exempt from
income tax, unless it qualifies as a non-profit organization, and it may
be subject to a tax equal to the full value of its remaining assets, CRA
says. |
