A Jewish charity group is challenging the Canada Revenue Agency’s decision to revoke its charitable status, citing an unfair process and biased decision-making.
The Jewish National Fund, a charity that has been operating in Canada for almost a century, says CRA was “wrong and unjustified” to revoke its charitable status over allegations it was using donated funds to support military infrastructure in Israel.
“JNF Canada remains deeply concerned with the CRA’s decision to revoke its charitable status and its failure to provide a fair due process, thereby undermining a basic fundamental right for all Canadians,” said a letter from the Jewish group to its supporters, first reported on by the National Post.
The Jewish National Fund funds several charitable projects in Israel, including programs for special needs children and rebuilding and reforestation of areas that terrorist attacks have ravaged.
The group intends to argue that the CRA erred in its findings, that the procedures were unfair because they did not allow the group to “test the facts” before the case went to the Federal Court of Appeal, and that the audit findings were influenced by bias.
“The CRA is committed to administering acts for which it is responsible fairly and impartially. The CRA assesses all concerns about registered charities against a clear regulatory and risk framework designed to prevent bias in our decision-making process,” a representative for the tax agency told True North.
However, the CRA said it doesn’t comment on ongoing court cases “to respect the confidentiality provisions of the Acts it administers.”
According to the Jewish fund, it’s been audited five times since it was incorporated in 1967, and “no issues of significance” were raised before that.
The group was previously under the ire of the CRA for allegedly breaking Canada’s tax code, which prohibits tax-free charity funds from being used to support the armed forces of another nation. At that time, the group argued it was funding jungle gyms and activities for children on military bases and not the military itself.
The group claims that after a series of issueless audits, the CRA is retroactively reversing a decision that recognized the charity’s projects as legitimate in 1967.
“Our position is that it is unjust for CRA to revoke a charity because a charitable object that it accepted almost 60 years ago is now no longer considered to be a valid charitable object. It is simply unjust to close a charity supported by over 100,000 Canadians based on reversing a decision the CRA made in 1967,” Nathan Disenhouse, the national president of the JNF Canada, said in the community letter.
The group will argue using “evidence from the CRA’s own records” that public pressure on the CRA and the national revenue minister from anti-Zionist organizations was an “important consideration” in the agency’s decision.
“A review of the record would leave a reasonable person with the impression that this pressure resulted in a biased decision,” the Jewish National Fund said.
The group assured its members that it will still function as a charity until the appeal is resolved.
“We will continue to organize events, fundraising campaigns, missions to Israel, and more,” it wrote.
Shimon Koffler Fogel, the President and CEO of the Centre for Israel and Jewish Affairs, is hopeful that the two organizations will reach a “constructive resolution” in the courts.
“We believe JNF has a compelling case to make in light of a troubling experience with CRA, which is mandated to work with charities rather than adopt an adversarial approach,” Fogel said. “CIJA remains hopeful that JNF and CRA will ultimately identify a constructive resolution, permitting JNF to continue its important work ranging from relief from poverty to environmental reclamation.”
