Friday, May 31, 2013

$5,000 fine for failing to file corporate tax returns

Sault Ste. Marie, Ontario, May 31, 2013 … The Canada Revenue Agency (CRA) announced today that on May 27, 2013, Yvon Champagne of Sault Ste. Marie, Ontario, pleaded guilty in the Ontario Court of Justice in Sault Ste. Marie, to a total of five counts of failing to file corporate tax returns. He was fined $5,000.

Champagne, as the director of Mid-Canada Construction Corp., 1187839 Ontario Limited and 1644365 Ontario Inc., failed to file corporate income tax returns, for the 2008 taxation year, for all three corporations. He also failed to file corporate income tax returns on behalf of 1704762 Ontario Inc. for 2007 and 2008. He was fined $1,000 per count and given 12 months to pay the fine.

The preceding information was obtained from the court records.

When taxpayers or corporations are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they are still obligated to file the outstanding tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures

Further information on convictions can also be found in the Media Room on the CRA website at
www.cra.gc.ca/convictions

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.

Thursday, May 23, 2013

Minister Shea congratulates the Taxpayers' Ombudsman for five successful years promoting the rights of Canadian taxpayers

Ottawa, Ontario, May 23, 2013... The Honourable Gail Shea, Minister of National Revenue, and Minister for the Atlantic Canada Opportunities Agency, today celebrated that Canadians have been served for five successful years by J. Paul Dubé, Canada’s first Taxpayers’ Ombudsman.

“In 2006, our Government made a firm commitment to support Canadian taxpayers,” said Minister Shea. “We followed through by introducing both the Taxpayer Bill of Rights and the Office of the Taxpayers’ Ombudsman. I am pleased to see the Office’s clear record of success in representing the interests of Canadian taxpayers and working with the Canada Revenue Agency (CRA).”

The Office of the Taxpayers’ Ombudsman operates independently from the CRA and was established to uphold taxpayer service rights and to provide an impartial review of unresolved service complaints from taxpayers. In 2008, Mr. Dubé was the first person to be appointed to the position of Taxpayers’ Ombudsman.

“Today we are pleased to celebrate the fifth anniversary of my office, and the results we continue to achieve in helping Canadians obtain the fair treatment they are entitled to from the CRA. We are also pleased to celebrate the impact my office has had, and will continue to have, on the resolution of CRA service issues,” said Mr. Dubé. “In our role, we take great pride in making a difference in the lives of Canadians by making sure the Taxpayer Bill of Rights is respected.”

The Taxpayer Bill of Rights outlines 15 rights and includes a five-point commitment from the CRA to small business. It was established to help taxpayers understand what they can expect in their dealings with the CRA: that they will be treated fairly and receive high standards of service in all of their interactions with the CRA.

Since its establishment, the Office has resolved hundreds of requests for assistance from taxpayers. In addition, Mr. Dubé and his office have published six special reports providing the Minister with recommendations to address many important service issues, from misallocated payments to how the public is provided with information on the tax-free savings account. All of the recommendations put forward by the Ombudsman have been accepted by the Government, and the CRA has taken steps to enhance its services as a result.

The Harper Government remains focused on the priorities that Canadians care most about, as recently outlined by the Prime Minister: ensuring that the rights of Canadian taxpayers are promoted by the Taxpayers’ Ombudsman supports Canadian families and their personal financial security.

For more information about the Office of the Taxpayers’ Ombudsman, go to www.taxpayersrights.gc.ca.

For more information on the Taxpayer Bill of Rights, go to www.cra.gc.ca/rights.


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.

Tuesday, May 21, 2013

$10,000 in fines for failing to file GST/HST returns

Toronto, Ontario, May 21, 2013 … The Canada Revenue Agency (CRA) announced today that on May 15, 2013, Douglas W. Gray of Mississauga, Ontario, pleaded guilty in the Ontario Court of Justice in Toronto, to a total of 10 counts of failing to file GST/HST returns. He was fined a total of $10,000. The fine must be paid within 18 months.

Gray, an accountant, was fined $1,000 per count for failing to file 10 quarterly GST/HST returns from January 1, 1998 to June 30, 2000. All outstanding GST/HST returns have since been filed.

The preceding information was obtained from the court records.

When taxpayers or corporations are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they are still obligated to file the outstanding tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them.  These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions

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.

Monday, May 20, 2013

Canadian Families Benefitting from Harper Government’s Low-Tax Plan

Halifax, Nova Scotia, May 20, 2013... The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, today announced that Canadian families are receiving significant tax refunds as a result of the low-tax measures introduced by the Harper Government since 2006.

“Our Government is committed to a low-tax plan that supports hardworking Canadian families,” said Minister Shea. “We understand that keeping taxes low allows Canadians to keep more of their hard-earned money and meet the financial challenges of raising a family.”

The average individual tax refund so far for the 2012 tax year is approximately $1,620. That is a significant increase from the average individual tax refund of $1,230 in 2007.

The Harper Government’s strong record of providing tax relief to Canadians is delivering real results. The average family of four now saves more than $3,200 annually in taxes, including an average of $1,000 from reducing the Goods and Services Tax (GST) rate by two percentage points.

“Canadian families are seeing the results of our Government’s low-tax plan and can reinvest their refunds in important family priorities,” said Minister Shea. “We will continue to support tax relief measures that will help reduce the cost of every-day living.”

The Harper Government has increased the amount of income that all Canadians can earn before paying federal income tax and reduced the lowest personal income tax rate from 16% to 15%.

Minister Shea joined many hardworking Canadian families at a Soccer Nova Scotia’s event celebrating 100 years of soccer in the province, where she took the opportunity to highlight the many tax-saving measures that are available to Canadian families. These credits include:
  • The Children's Fitness Tax Credit allows eligible Canadian families to claim a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible physical activity programs, such as soccer or hockey teams. For the 2011 tax year, over 1.5 million families took advantage of the Children's Fitness Tax Credit.
  • The Children's Arts Tax Credit allows eligible Canadian families to claim a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible artistic, cultural, or other programs, such as music lessons or tutoring. Over 460,000 families claimed the Children's Arts Tax Credit in the 2011 tax year.
  • The Family Caregiver Tax Credit is a 15 per cent non-refundable tax credit on an amount of $2,000 that provides tax relief to caregivers of infirm dependent relatives. This includes, for the first time, infirm spouses, common-law partners, and minor children. Canadians were able to claim this new, non-refundable tax credit for the first time when filing their 2012 taxes.
  • The Tradesperson's Tool Deduction allows tradespeople to deduct from their income part of the cost of tools purchased throughout the year.
  • The Textbook Tax Credit provides increased tax relief to students in addition to the Tuition and Education Tax Credits. Students must first claim their credit on their own returns, but may be able to transfer unused amounts to a parent, grandparent, spouse or common-law partner.
  • The Public Transit Tax Credit allows Canadians to claim the full amount they spend on eligible transit passes for the year. In 2011, more than 1.6 million Canadians claimed this credit.
  • The Volunteer Firefighters' Tax Credit is available to any volunteer firefighter who serves at least 200 hours per year at one or more fire departments in their community. In 2011, more than 37,000 Canadian volunteer firefighters took advantage of this new tax credit.
For more information on these and other credits, go to www.cra.gc.ca/taxsavings.

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.

Wednesday, May 15, 2013

$10,000 in fines for failing to file tax returns

Sudbury, Ontario, May 15, 2013 … The Canada Revenue Agency (CRA) announced today that on May 13, 2013, Corinne Desjardins and Brian Desjardins, of Sudbury, Ontario, pleaded guilty in the Ontario Court of Justice in Sudbury, to a total of 10 counts for failing to file tax returns. They were fined a total of $10,000. When taxpayers or corporations are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they are still obligated to file the outstanding tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Brian Desjardins and Corinne Desjardins were each fined $3,000 for failing to file their 2008 to 2010 personal income tax returns.

As director of Desjardins Communications Ltd., Corinne Desjardins was fined $3,000 for failing to file corporate income tax returns for the years 2008 to 2010. She was also fined an additional $1,000 for failing to file quarterly GST returns for the periods ending December 2010 and March, June and September of 2011.

The preceding information was obtained from the court records.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions

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.

Tuesday, May 14, 2013

Real estate agent fined for not filing GST returns

Brampton, Ontario, May 14, 2013… The Canada Revenue Agency (CRA) announced today that on May 10, 2013 John Lassu, of Etobicoke, pleaded guilty in the Ontario Court of Justice in Brampton to two counts of failing to file GST returns. Mr. Lassu was fined $1,000 per count, for a total of $2,000. He has one year to pay the fine.

As a self-employed real estate agent, Mr. Lassu failed to file the 2004 and 2005 GST returns. He filed the outstanding tax returns only after the CRA laid charges.

The preceding information was obtained from the court records.

When individuals or corporations are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they are still obligated to file the tax return and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Thursday, May 9, 2013

Statement from the Honourable Gail Shea, Minister of National Revenue

Ottawa - May 9, 2013 - Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency delivered the following statement with regards to information on Canadians with offshore assets that has allegedly been in the possession of several media outlets:

“Canada has been working tirelessly with its International partners ever since reports surfaced that certain media outlets were in possession of large amounts of data related to potential cases of tax evasion or aggressive tax avoidance. We continue to work to obtain the information from other sources.”

“Today, the United States, Australia, and the United Kingdom announced they are in possession of tax-related information involving numerous trusts and companies holding assets on behalf of residents in jurisdictions around the world.”

“I have reached out to the Government of the United Kingdom and secured a commitment that information relevant to Canada stemming from this data will be shared. My officials have also made formal requests to the American and Australian tax administrations for the information in their possession. I would like to thank HM Revenue and Customs, the US Internal Revenue Service and the Australian Taxation Office for their close collaboration.”

This is good news for hard-working, law-abiding Canadians who pay their fair share and very bad news for tax evaders in this country – and indeed around the world.”

“This underscores the close working relationship that Canada has developed with its international partners. Since 2006, our Government has worked to grow our network of information sharing agreements. Canada now has over 90 tax treaties and 16 tax information exchange agreements that allow for tax information to be shared. This makes it increasingly possible for Canada to access information from jurisdictions around the world.”

“International cooperation, along with implementation of key enforcement measures, such as those proposed in Economic Action Plan 2013, are essential to combatting international tax evasion and aggressive tax avoidance. Canada is determined to maintain these fruitful partnerships and to continue to be a world leader in the fight against international tax evasion and aggressive tax avoidance.”

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.

Wednesday, May 8, 2013

Harper Government announces new measures to crack down on international tax evasion and aggressive tax avoidance

Ottawa, Ontario, May 8, 2013… The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency and the Honourable Maxime Bernier, Minister of State (Small Business and Tourism), today announced new measures to combat international tax evasion and aggressive tax avoidance, including a $30-million investment by the Harper Government and the creation of a dedicated team to implement measures from Economic Action Plan 2013.

Through these actions, the Canada Revenue Agency (CRA) will have an unprecedented ability to address these serious problems.

“Those who don’t pay their taxes by hiding money overseas place an unfair burden on law-abiding, hardworking Canadians,” said Minister Shea. “Our Government has long recognized that international tax evasion is a serious issue, and we are dedicated to cracking down on those who attempt to cheat the system.”

The Harper Government’s efforts to enhance the integrity of the tax system include a $30-million investment over five years for the CRA to target international tax evasion and aggressive tax avoidance. This includes:
  • New resources of $15 million through Economic Action Plan 2013 to establish the necessary systems for the CRA to receive reports from banks and other financial intermediaries on international electronic funds transfers of $10,000 or more; and
  • An additional $15 million in reallocated CRA funds that will be used to bring in new audit and compliance resources dedicated exclusively to international compliance issues and revenue collection identified as a result of measures outlined in Economic Action Plan 2013.
To ensure that these activities move forward quickly, a dedicated team of CRA experts will be created. This new team will be responsible for the implementation of the international tax evasion and aggressive tax avoidance measures announced in Economic Action Plan 2013. It will ensure that the full force of the agency’s international compliance and auditing resources are brought to bear on individuals or businesses seeking to hide money or assets offshore.

These actions will increase the CRA’s ability to audit, investigate, and pursue cases of international tax evasion and aggressive tax avoidance. Measures announced in Economic Action Plan 2013 include:
  • Launching a new Stop International Tax Evasion Program that will allow the CRA to pay individuals with knowledge of major international tax non-compliance a percentage of federal tax collected as a result of the information provided;
  • Requiring financial institutions and others who currently report information on international electronic funds transfers greater than $10,000 to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to also report those transactions to the CRA;
  • Introducing additional requirements for Canadian taxpayers with foreign income or properties to report more detailed information, and extending the amount of time the CRA has to reassess those who have not properly reported this income.
“Our Government is providing the CRA with further resources to ensure our tax system remains fair for Canadians who work hard and play by the rules,” said Minister Bernier. “These new measures will provide additional tools to combat international tax evasion and aggressive tax avoidance, and improve the integrity of the tax system.”

The Minister of National Revenue has also directed the CRA to continue to pursue all means available to obtain information that the International Consortium of Investigative Journalists and its members hold on individuals with income or property held offshore, reportedly including 450 Canadians. Written requests from the CRA have already been sent to the International Consortium of Investigative Journalists as well as to the Canadian Broadcasting Corporation, underscoring the public interest in confidential disclosure of the information to the CRA.

Backgrounders

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.

Monday, May 6, 2013

Toronto tax preparer sentenced to house arrest for tax fraud scheme

Brampton, Ontario, May 6, 2013...The Canada Revenue Agency (CRA) announced today that Mr. Dele Afolabi, also known as Afolabi Dele, pleaded guilty on May 1, 2013 in the Ontario Court of Justice in Brampton, to one count of tax evasion. He was sentenced to a six-month conditional sentence of house arrest, and a fine of $10,000.

Mr. Afolabi operated Abundant Grace Investments, also known as Abundance Grace Investment, providing tax preparation services, financial planning and accounting related services. A CRA investigation discovered that false charitable donation claims totalling $373,364 were made on 59 income tax returns prepared by Mr. Afolabi for clients for the 2006 to 2008 tax years. The false claims were supported by fraudulent charity receipts. The false claims reduced the amount of federal taxes owed by $104,542.

The information in this news release was obtained from the court records.

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Mississauga chartered accountant sentenced to jail and fined for tax fraud scheme

Brampton, Ontario, May 6, 2013...The Canada Revenue Agency (CRA) announced today that Mr. Imad Kutum pleaded guilty on November 27, 2012 in the Ontario Court of Justice in Brampton, to one count of fraud over $5,000 under the Criminal Code. He was sentenced to two years in jail and a fine of $100,000.

Mr. Kutum, a chartered accountant, operated Kutum and Associates, providing tax preparation services and accounting related services. A CRA investigation discovered that false charitable donation claims totalling $3,674,000 were made on 487 income tax returns prepared by Mr. Kutum for clients for the 2003 to 2008 tax years. The false claims were supported by fraudulent charity receipts. The false claims reduced the amount of federal taxes owed by $1,045,111.

The information in this news release was obtained from the court records.

“Canadian taxpayers must have confidence in the fairness of the tax system,” said Darrell Mahoney, Assistant Commissioner, Ontario Region, CRA. “To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions.”

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at
www.cra.gc.ca/convictions.

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.

Friday, May 3, 2013

The Canada Revenue Agency revokes the registration of Trinity Global Support Foundation as a charity

Ottawa, Ontario, May 3, 2013. . . The Canada Revenue Agency (CRA) will revoke the registration of Trinity Global Support Foundation, a London-based charity. The notice of revocation will be published in the Canada Gazette with an effective date of May 4, 2013.

On February 1, 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 Trinity Global Support Foundation as a charity. The letter stated, in part, that:

Our audit revealed that the Organization devoted a significant portion of its resources to the promotion of the Mission Life Financial Inc. and Canadians Care donation arrangements. As a result of its participation in these arrangements, between June 1, 2007 and May 31, 2010, the Organization reportedly received nearly $25 million in cash and in-kind property.

With respect to the Mission Life Financial Inc., a registered tax shelter, the Organization issued tax receipts exceeding $1.13 million for cash contributions and $16 million for pharmaceuticals. Of the cash contributions received, the Organization paid nearly $1.03 million to the promoters of the tax shelter and to the Organization’s directors or related parties. It is our position the Organization issued the tax receipts improperly, particularly given our finding that the $16 million recorded for the pharmaceuticals were grossly inflated. As a result, we conclude neither contribution qualifies as gifts at law.

With respect to the Canadians Care promoted donation arrangement, the Organization issued tax receipts exceeding $7.8 million for leveraged cash contributions. The Organization invested over $7 million into investments held by corporations related to its directors and also related to the donation arrangement. These funds were subsequently lost due to the actions of those corporations. The Organization was also found to have improperly paid over $865,000 to individuals and corporations related to the Organization’s directors.

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.

The CRA is reviewing all gifting tax shelter schemes (for example, schemes that typically promise donors a tax receipt worth more than the actual amount of the donation), and it plans to audit every participating charity, promoter, and investor. For more information about tax shelters, go to the CRA’s Tax alert Web page at www.cra.gc.ca/alert.

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.

The Canada Revenue Agency revokes the registration of The Life Centre Word of Faith Ministries Inc. as a charity

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.