Ottawa, Ontario, January 20, 2012. . . The Canada Revenue Agency (CRA) will revoke the charitable registration of Hope Church of God Deliverance Ministries, a Toronto area charity. The notice of revocation has been published in the Canada Gazette with an effective date of January 21, 2012.
On November 29, 2011, the CRA issued a notice of intention to revoke the charitable registration of Hope Church of God Deliverance Ministries, in accordance with subsection 168(1) of the Income Tax Act. The letter stated, in part, that:
Our audit concluded that the Organization failed to devote its resources exclusively to its own charitable activities by participating in a promoted donation arrangement in 2009. As a result, the Organization issued over $2 million in tax receipted donations related to this promoted donation arrangement. It is our position the property for which these tax receipts were issued did not legally qualify as gifts; that the Organization failed to demonstrate that it had actually received the tax-receipted property; and that the Organization failed to report the fair market value of the property purportedly gifted.
Our audit also revealed that the Organization failed to maintain adequate books and records as required by section 230 of the Act; that it failed to issue tax receipts in accordance with Regulation 3501 of the Act; and that it failed to file a T3010, Registered Charity Information Return containing the prescribed information.
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 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 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 registered charities through the Act, and it is committed to ensuring that charities operate in compliance with the law. Registered charities receive generous tax incentives under the Act including the authority to issue official donation receipts. To maintain this privilege, registered charities are required to keep adequate books and records to allow the CRA to verify donations made to the charity and to ensure the proper use of charitable resources.
Issuing receipts for property that does not legally qualify as a gift and failing to maintain adequate books and records and are both considered serious breaches of the requirements of the Act and each are grounds for the revocation of charitable status. 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 Act.
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.
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The Canada Revenue Agency has announced that it will revoke the charitable registration of Hope Church of God Deliverance Ministries, a Toronto-area charity. The revocation will come into effect on January 21, 2012.
Canada Revenue Agency