Below is a notice from the Canada Revenue Agency of the
revocation of the charitable registration of Trinity Divine
Outreach Ministries for issuing donation receipts for shares
purportedly traded on the Frankfurt Stock Exchange.
Ottawa, Ontario, January 11, 2013... The Canada Revenue Agency
(CRA) will revoke the registration of Trinity Divine Outreach
Ministries, a Scarborough-based charity. The notice of revocation
will be published in the Canada Gazette with an effective date of
January 12, 2013.
On November 30, 2012, and in accordance with subsection 168(1)
of the Income Tax Act, the CRA issued a notice of intention to
revoke the registration of Trinity Divine Outreach Ministries as a
charity. The letter stated, in part, that:
The Canada Revenue Agency's (CRA) audit has revealed that
the Organization has not complied with the requirements of the
Income Tax Act through its participation in a donation arrangement
promoted by Innovative Gifting Inc. As a direct result, the
Organization issued 40 donation receipts for a total exceeding $1.1
million for shares purportedly traded on the Frankfurt Stock
Exchange. It is the view of the CRA that the shares for which the
tax receipts were issued did not legally qualify as gifts; that the
Organization failed to demonstrate that it had actually received
the tax-receipted shares; and that the Organization failed to
report the fair market value of the shares purportedly gifted.
A copy of the notice of intention to revoke and other letters
relating to the grounds for revocation are available to the public
on request, in the language they were originally written, by
An organization that has had its registration revoked can no
longer 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.
Registered charities perform valuable work in our communities,
and Canadians support this work in many ways. The CRA regulates
these organizations through the Income Tax Act and is committed to
ensuring that they operate in compliance with the law. When a
registered charity is found not to comply with its legal
obligations, the CRA may revoke its registration under the Income
The CRA is reviewing all tax shelter-related donation
arrangements (for example, schemes that typically promise donors a
tax receipt worth more than the actual amount of the donation), and
it plans to audit every participating charity, promoter, and
investor. For more information about tax shelters, go to the
CRA's Tax alert Web page at www.cra.gc.ca/alert.
For more information about the registration of Canadian
charities, go to the CRA's Charities and Giving Web page at www.cra.gc.ca/charities.
For Broadcast Use:
The Canada Revenue Agency has announced that it will revoke the
registration of Trinity Divine Outreach Ministries, a
Scarborough-based charity. The revocation will come into effect on
January 12, 2013.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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