Below is a notice from the Canada Revenue Agency of the
revocation of the charitable registration of International
Fellowship Mission Inc. for issuing donation receipts for
transactions not qualified as gifts.
Ottawa, Ontario, January 11, 2013... The Canada Revenue Agency
(CRA) will revoke the registration of International Fellowship
Mission Inc., a Saskatoon-based charity. The notice of revocation
will be published in the Canada Gazette with an effective date of
January 12, 2013.
On November 19, 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 International Fellowship Mission Inc.
The letter stated, in part, that:
"The Canada Revenue Agency's (CRA) audit revealed that
the Organization failed to devote its resources exclusively to its
own charitable activities by participating in the Universal Barter
Group, a registered tax shelter. Our audit indicated that, for the
period from January 1, 2007 to December 31, 2008, the Organization
issued $1.1 million in donation receipts for transactions that do
not qualify as gifts and did so at the direction of the tax shelter
promoter. Our audit also revealed that the Organization failed to
maintain or provide adequate books and records as required by
section 230 of the Act to demonstrate that the pharmaceuticals it
purportedly acquired were distributed under the direction of the
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 as a charity
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 International Fellowship Mission Inc., a
Saskatoon-based charity. The revocation will come into effect on
January 12, 2013.
Canada Revenue Agency
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