Ottawa, Ontario, February 17, 2009... The Canada Revenue Agency (CRA) has revoked the charitable registration of the Dominion Christian Centre of Canada, a Hamilton-area charity. This revocation was effective February 14, 2009.
On December 30, 2008, the CRA, on behalf of the Minister of National Revenue, issued a notice of intention to revoke the charitable registration of the Dominion Christian Centre of Canada, in accordance with subsection 168(1) of the Income Tax Act. The letter stated, in part, that:
Our audit revealed serious issues of non-compliance. In particular, it was found that the Charity's assets have been misused for the private benefit of members, directors, donors and employees, and that the Charity has issued official donation receipts containing incorrect or false information.
At the Charity's expense, and unrelated to its charitable programs, improper personal benefits have been provided including numerous personal trips, payments for privately used vehicles, gym memberships, food, lodging, and other unsubstantiated payments.
The Charity has improperly issued receipts for transactions that do not qualify as gifts, and has failed to properly establish the fair market value of property received which, in several cases, was significantly inflated.
The notice of intention to revoke and other letters relating to the grounds for revocation are available to the public on request by calling 1-800-267-2384.
A charity that has had its charitable status 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.
The CRA regulates registered charities through the Income Tax Act and is committed to ensuring that charities operate in compliance with the law. Where a registered charity is found not to comply with its legal requirements, the CRA may apply monetary penalties or may suspend or revoke the charity's status under the Income Tax Act.
Under the Income Tax Act, registered charities must be established and operated for the benefit of the public. The resources of a registered charity are to be used in furtherance of its charitable programs and cannot be used for the private gain of individuals. Where the abuse or misuse of charitable resources is discovered, the CRA will take action to protect the assets of the charity and the integrity of the charitable sector as a whole.
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.
