Ottawa, Ontario, May 3, 2013. . . The Canada Revenue Agency (CRA)
will revoke the registration of The Life Centre Word of Faith Ministries
Inc., a Toronto-based charity. The notice of revocation will be
published in the Canada Gazette with an effective date of May 4, 2013.
On March 25, 2013, and in accordance with subsection 168(1) of the Income Tax Act,
the CRA issued a notice of intention to revoke the registration of The
Life Centre Word of Faith Ministries Inc. as a charity. The letter
stated, in part, that:
“The Canada Revenue Agency’s (CRA) audit has revealed that the
Organization is not complying with the requirements of the Income Tax
Act. In particular, it was found that the Organization failed to
maintain adequate books and records to substantiate its reported revenue
and expenditures, as well as to support its charitable activities. The
audit revealed that the Organization’s resources were not devoted
strictly to charitable activities, and were used to confer undue
benefits on a director and his family. The Organization was found to
have participated in a series of improper investments with corporations
owned and operated by its Director, Mr. Marlon (Gary) Hibbert and his
family.
During the course of the audit, Mr. Marlon (Gary) Hibbert was found
by the Ontario Securities Commission (OSC) to have “perpetrated a fraud
on investors contrary to subsection 126.1(b) of the Act [Securities Act
R.S.O. 1990 c.S.5] and contrary to public interest; and Hibbert misled
Staff contrary to subsection 122(1)(a) of the Act [Securities Act R.S.O.
1990 c.S.5] and contrary to public interest.” While we are not relying
on the OSC decision as grounds for revocation, our audit findings are
consistent with those of the OSC to the extent that Mr. Hibbert used the
funds of the charity for his own private gain.”
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 calling 1‑800‑267‑2384.
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 Tax 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.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
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