July 11, 2014 - Ottawa, Ontario – Canada Revenue Agency
The Canada Revenue Agency (CRA) will revoke the registration of the Jesus of Bethlehem Worship Centre, a charity based in Etobicoke, Ontario. The notice of revocation will be published in the Canada Gazette with an effective date of July 12, 2014.
On May 21, 2014, in accordance with subsection 168(1) of the Income Tax Act, the CRA issued a notice of intention to revoke the registration of the Jesus of Bethlehem Worship Centre as a charity. The letter stated, in part, that:
“It is the Canada Revenue Agency’s (CRA) position that the Organization is not complying with the requirements of the Income Tax Act for its registration. The Organization did not maintain adequate books and records, issued receipts other than in accordance with the Act, and did not file accurate T3010 information returns. During the course of the audit, the CRA also obtained official donation receipts totalling approximately $156,000 that were not provided by the Organization.
The audit also revealed that the board of directors of the Organization includes “ineligible individuals” as defined in the Act. In particular, two directors of the Organization were directors of The Heaven’s Gate Healing Ministry at a time when it engaged in conduct which constituted a serious breach of the requirements for registration under the Act, for which its registration was revoked in 2009.
Finally, it is the CRA’s position that the Organization supplied false or misleading information when applying for registration. Specifically, the Organization failed to include the full and proper legal names of its directors and incorrectly indicated that its directors were at arm’s length.”
The CRA strives to prevent non-compliance, and to identify and correct it when it occurs, to keep the tax system fair and equitable for all Canadians.
The CRA monitors the operations of registered charities and ensures compliance through a balanced program of education, service, and responsible enforcement.
To safeguard the assets of registered charities and protect the donations of Canadians, the Income Tax Act allows the CRA to revoke a charity’s registration or suspend its tax receipting privileges if it is found to be controlled or managed by an “ineligible individual.” An ineligible individual includes a director, trustee, or official of a charity previously revoked for serious non-compliance; a promoter of an abusive tax shelter gifting arrangement; or an individual convicted of a relevant criminal or other offence.
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.
For more information about the registration of Canadian charities, or to find out more about a particular registered charity, go to www.cra.gc.ca/charities.
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Canada Revenue Agency