Posts Tagged ‘Canada Revenue Agency’

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Canadian auditors: Game over for Islamic charity

September 29, 2013

It’s final.  ISNA’s tax-exempt status has been revoked by the Canada Revenue Agency after an efficient and pointed audit that revealed ISNA sent nearly $300,000 to a terrorist organization in Kashmir.  Language from auditors and tax professionals is normally guarded, nuanced, and measured.  Read with that understanding of their profession in mind, the public announcement by CRA of their findings is scathing.  An excerpt follows.  Thanks to the reliable Gisele for sending this in:

…Our analysis of the information obtained during the course of the audit has led the CRA to believe that the Organization had entered into a funding arrangement with the Kashmiri Canadian Council/Kashmiri Relief Fund of Canada (KCC/KRFC), non-qualified donees under the Act, with the ultimate goal of sending the raised funds to a Pakistan-based non-governmental organization named the Relief Organization for Kashmiri Muslims (ROKM) without maintaining direction and control. Under the arrangement, KCC/KRFC raised funds for “relief work” in Kashmir, and the Organization supplied official donation receipts to the donors and disbursed over $281,696 to ROKM, either directly, or via KCC/KRFC.

Our research indicates that ROKM is the charitable arm of Jamaat-e-Islami, a political organization that actively contests the legitimacy of India’s governance over the state of Jammu and Kashmir, including reportedly through the activities of its armed wing Hizbul Mujahideen. Hizbul Mujahideen is listed as a terrorist entity by the Council of the European Union and is declared a banned terrorist organization by the Government of India, Ministry of Home Affairs, under the Unlawful Activities (Prevention) Act of 1967.

Given the commonalities in directorship between ROKM and Jamaat-e-Islami, concerns exist that the Organization’s resources may have been used to support the political efforts of Jamaat-e-Islami and/or its armed wing, Hizbul Mujahideen.”

The Government of Canada has made it clear that it will not tolerate the abuse of the registration system for charities to provide any means of support to terrorism. Canada’s public policy recognizes that the tax advantages of charitable registration should not be extended to organizations whose resources may have been made available, knowingly or unknowingly, to a terrorist entity, whether such financing is direct or indirect through organizations that claim to have nominally “charitable,” social, or cultural aims…

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Lights out for terror-funding Islamic charity

August 7, 2013

Canadian nonprofit ceases operations after bank closes account

Once again pointing to the power of tax authorities to expose and defang dangerous front charities, a Muslim nonprofit in Canada has stopped accepting donations after its bank closed its account.  The bank’s decision followed an audit and finding by tax officials that IRFAN was no longer eligible for tax-exempt status, largely because of its role in funding Hamas.

The bank account closure and operational suspension is also a victory for Canada’s taxpayers, who will no longer see their money being channeled through a network of smaller Islamic charities and mosques for distribution by IRFAN.

From the National Post; thanks to Gisele for sending this in:

Relief organization that allegedly supported Hamas suspends operations after CIBC closes bank accounts

Stewart Bell | 13/07/15

A humanitarian relief organization that lost its charity status two years ago over its alleged support for Hamas said Monday it was suspending operations after the Canadian Imperial Bank of Commerce won court approval to close its accounts.

The CIBC gave notice in May that it intended to stop providing banking services to the International Relief Fund for the Afflicted and Needy — Canada. The Ontario Superior Court of Justice upheld that decision, which went into effect on Monday.

Without a bank, the Toronto-based relief group, which spent $9-million on charitable activities in 2009, said it could no longer transfer money abroad for programs that include the support of orphans in the Palestinian Territories, Lebanon and Sudan.

“IRFAN-Canada is choosing not to accept donations at this time because they are unable to transmit funds to the intended destinations,” the group’s lawyer, Naseer Syed, told the National Post. “Therefore, without donations, they will be forced to suspend their humanitarian relief programs”…

Formed in 1998, IRFAN-Canada was mostly active in the Muslim world but it ran afoul of federal regulators, who revoked its charity status in 2011. The Canada Revenue Agency said an audit had determined the group was an “integral part” of an international fundraising effort that supported Hamas, a Palestinian terrorist group…

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Audit reveals ISNA funded militants

August 5, 2013

The Canadian affiliate of the Islamic Society of North America has come under the scrutiny of Canada Revenue Agency for violating rules governing ISNA’s tax-exempt status by failing to demonstrate that its overseas philanthropy is genuine.  The CRA found that ISNA’s only “evidence” to justify how its money was spent in Kashmir is a doctored photograph.

Hizbul Mujahideen, a terrorist group in Kashmir and the recipient of ISNA’s largesse, has a wide-ranging revenue strategy including zakat and hawala from Pakistan, animal skin smuggling, and counterfeiting.  Its ability to access Western relief money through North American charities suggests an even broader international reach than previously understood.

ISNA’s U.S. affiliate was previously named as an unindicted co-conspirator in the trial against the Holy Land Foundation for funding Hamas.  ISNA-USA claims that it is a legally separate entity from ISNA Canada despite maintaining an ISNA-Canada representative, Dr. Mohamed Bekkari, on its executive council.

Thanks to Gisele for sending in links on the subject including this article from The Star, which serves as yet another example of zakat-financed terrorism:

Star Investigation: Federal audit raises concern that Canadian charity funded terror

Ottawa fears several thousands of dollars went to supporting the Hizbul Mujahideen — a militant group that seeks the secession of Kashmir from India.

By: Jesse McLean Investigative News reporter, Published on Thu Jul 25 2013

Money raised by an Islamic charity created to help Canada’s poor and needy instead went overseas, potentially into the hands of violent militants, a government audit has found.

The federal charity watchdog is now threatening to revoke the charity status of Mississauga’s ISNA (Islamic Society of North America) Development Foundation.

A Canada Revenue Agency audit revealed the foundation shipped more than $280,000 to a Pakistan-based agency, cash the government fears went to supporting the Hizbul Mujahideen — a militant group that seeks the secession of Kashmir from India.

The foundation “facilitated the transfer of resources that may have been used to support the efforts of a political organization . . . and its armed wing,” the CRA said in a letter to the charity outlining its findings, obtained by the Star.

“Canada’s commitment to combating terrorism extends to preventing organizations with ties to terrorism from benefiting from the tax advantages of charitable registration,” the CRA letter said…

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Canada’s taxpayers unwittingly fund Hamas

February 17, 2013

IRFAN, the Islamic charity whose tax-exempt status was revoked by the Canada Revenue Agency over suspicions that it finances Hamas, has received funding from a slew of smaller Islamic groups—some of which include Edmonton-area mosques and nonprofits that have been beneficiaries of grant money from the provincial government of Alberta.  This is the conclusion reached by Point de Bascule after detailed research.

A tip of the hat to Gisele for sending in the link.

Point de Bascule has many diagrams depicting the relationships among the Canadian mosques, charities, and front groups involved.  Here is just one of the diagrams, which shows how the Millwoods Mosque, an Alberta grant recipient, donated zakat in the last decade to middlemen that funded IRFAN.

http://pointdebasculecanada.ca/articles/10002905-alberta-gave-$250,000-to-islamists-who-financed-hamas%E2%80%99-fund-collector-and-invites-promoters-of-sharia-in-edmonton.html

Read the full PdB piece here.

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Halal food profits funneled to Hamas?

April 10, 2012

The Muslim Association of Canada, which admits that its roots can be found in the global Muslim Brotherhood, is a primary halal food certifying entity in Canada.  It has also been a major financial contributor to IRFAN, a “charity” that was stripped of its tax-exempt status by Canadian revenue authorities partly due to its ties with Hamas.

TGMBDR has the story here, and Point de Bascule this chart depicting the connections:

Chart by Point de Bascule

The distance between halal foods, sharia finance, and terror funding shrinks with every passing day.

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Canada’s taxman cracks whip on Muslim Youth

March 14, 2012

And the Canada Revenue Agency deserves a standing ovation for it.

Prior to 9/11, the World Assembly of Muslim Youth (WAMY) and its close North American affiliate known as the Benevolence International Foundation (BIF) made up one of the three charitable front groups that Osama Bin Laden depended on the most for Al Qaeda’s funding (the other two being the Muslim World League and the Qatar Charitable Society).

Now the Canada Revenue Agency has stripped WAMY’s Canadian branch of its tax-exempt status for its failure to prove that it is distinct from its parent organization (WAMY in Saudi Arabia) or to maintain an actual charitable purpose.

In 2011, the Canada Revenue Agency also revoked the tax-exempt status of the Islamic, bogus front charities known as the World Islamic Call Society (an entity sponsored by Muamar Qaddafi) and IRFAN (a Hamas-tied charity).

Unfortunately, the decision does not close WAMY or prevent it from raising funds, but only prevents contributions to WAMY from being claimed as tax-deductible expenses.

H/t to GMBDR, which points to this story from the National Post as further evidence of WAMY’s financial difficulties over the last couple years.

Canadian Muslim youth group tied to al-Qaeda stripped of charitable status

Mar 6, 2012 – 8:47 PM ET | Last Updated: Mar 7, 2012 8:58 AM ET

A Canadian Muslim youth organization has been stripped of its charitable status after a Canada Revenue Agency investigation linked it to a Saudi-based group that allegedly financed Islamist terror campaigns.

An audit of the World Assembly of Muslim Youth revealed the charity had developed ties to a number of organizations that allegedly helped fund al-Qaeda operations around the world and failed to comply with a number of standards required for charities to maintain their status.

In a warning letter to the Toronto-area organization last summer, CRA director-general Cathy Hawara said “our analysis of the Organization’s operations has led the CRA to believe…[it] was established to support the goals and operations of its parent organization, located in Saudi Arabia, which has been alleged to support terrorism.”

WAMY, known in Canada for running Islamic camps and pilgrimages for youth, was stripped of its status on Feb. 11. It failed to keep proper books and records, maintain a specific charitable purpose and distinguish itself from parent organization WAMY (Saudi Arabia), which had been alleged to support terrorist activity, the CRA audit said.

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Canada revokes Daffy Qaddafi’s fake charity

May 24, 2011

While Muslim American charities associated with the Muslim Brotherhood are hard at work in Libya, Muamar “Daffy” Qaddafi’s own problematic “charity” has had its nontaxable status revoked by the Canada Revenue Agency.

The World Islamic Call Society serves as a sort of Libyan version of the Goethe Institut, but instead of teaching interested foreigners about the German language and culture, WICS established sites around the world, including Canada, to help channel money to Islamic projects including terrorism.

The most famous project funded by the Canadian branch of WICS was the JFK airport bomb plot in New York in 2007.  That constitutes legal use of zakat under Islamic law, but not proper charity work under Canadian tax law.

Here’s the solid reporting from the Ottowa Citizen on May 7, h/t GMBDR:

Gadhafi charity in Canada linked to terrorism

Government revokes status of World Islamic Call Society

By GARY DIMMOCK, The Ottawa Citizen

OTTAWA — The Harper government has revoked the registration of a longtime Canadian charity that it says was established as a front by Libyan ruler Moammar Gadhafi to funnel money to terrorists the world over — including a Muslim militant cell implicated in a 2007 plot to blow up JFK airport in New York City.

According to government documents obtained by the Citizen, the World Islamic Call Society, based in London, Ont., has been transferring money from Gadhafi’s “Jihad fund” to bank accounts of known terrorists.

A payment of $170,814.20 was made to Jamaat al-Muslimeen, a terrorist group known for a campaign of rape, torture and murder, according to the documents. This same group once attempted to overthrow the elected government of Trinidad and Tobago.

Canada Revenue Agency financial documents also show that the Canadian charity transferred $10,000 directly to the terrorist group’s leader, Yasin Abu Bakr.

In Gadhafi’s scheme, according to federal government files, money was wired in U.S. funds to the personal bank account of Assem Fadel, then transferred to the bank account of the World Islamic Call Society’s Canadian branch, only to be distributed to known terrorist organizations.

Fadel, 75, is the president of the Islamic Call Society’s sole Canadian franchise, located on Kent Street in London, Ont.

“The allegations are unbelievable,” Fadel said, when told the society had been linked to the JFK plot.

Asked why money from Gadhafi’s jihad fund would be transferred to his own bank account and then deposited into the charity’s bank account, Fadel told the Citizen that he handled the money personally because the deposits were in U.S. funds.

“The charity doesn’t have a U.S. bank account so the money came to me and I distributed the money as directed by the mother organization in Libya,” Fadel said.

Fadel said he will not appeal the government’s March 26 ruling to revoke the registration of his charity, saying it’s too much of a “hassle.”

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