CRA revokes Operation Save Canada’s Teenagers and Revival Time Ministries International

January 18, 2011 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: What's New from the Charities Directorate of CRA, Canadian Charity Law

The CRA has revoked the registration of Operation Save Canada’s Teenagers and Revival Time Ministries International as a charity.  Here are copies of the actual CRA letters to the two registered charities:

Copies of Letters to Two Charities http://www.canadiancharitylaw.ca/index.php/blog/comments/canada_revenue_agency_deregistering_record_number_of_questionable_canadian_/ 

Also the CBC is now reporting:
http://www.cbc.ca/canada/toronto/story/2011/01/24/canada-revenue-agency-mokwe-charities.html
“The head of two Toronto-area organizations that were stripped of their charitable status after submitting “falsified” documents to federal regulators was sentenced this month for sexual assault for inappropriately touching a teenager, CBC News has learned.  Daniel Mokwe was sentenced Jan. 13 to time served — two nights in jail — and given two years probation.  The victim, a minor at the time of the assault, told Det. Richard Petrie of the Toronto Police Service that she knew Mokwe was a pastor. As a result of the incident, she lost her faith in God and would never enter another church again, she said.”

Here is the CBC The National report:
http://www.cbc.ca/video/#/News/TV_Shows/The_National/1233408557/ID=1765199218


Here is a Toronto Star article entitled: “Two Toronto charities have status revoked”
http://www.thestar.com/news/article/926820—two-toronto-charities-have-status-revoked?bn=1


Here are the press releases from the CRA.

http://www.cra-arc.gc.ca/nwsrm/rlss/2011/m01/nr110114-eng.html?=eml20110118
News release The Canada Revenue Agency revokes the registration of Operation Save Canada’s Teenagers as a charity

Ottawa, Ontario, January 14, 2011… The Canada Revenue Agency (CRA) will revoke the charitable registration of Operation Save Canada’s Teenagers, a Toronto-area charity. The notice of revocation will be published in the Canada Gazette with an effective date of January 15, 2011.

On November 23, 2010, the CRA issued a notice of intention to revoke the charitable registration of Operation Save Canada’s Teenagers, in accordance with subsection 168(1) of the Income Tax Act. The letter stated, in part, that:

Our audit of Operation Save Canada’s Teenagers (the Organization) has identified serious non-compliance with the requirements of the Act. In particular, throughout the course of the audit, significant receipting discrepancies were discovered, and the Organization provided falsified bank statements to substantiate revenues and expenditures of the Organization.

The Organization was unable to provide a complete record of donation receipts issued. A large number of duplicate copies of receipts were either missing or not maintained. Of the receipts provided by the Organization, serious discrepancies were noted including receipts for gifts of services such as car rentals, musical instrument rentals and facility rentals.

The Organization reported, for the 2006 and 2007 fiscal years, charitable expenditures of $654,043 and $1,057,707 respectively. However, our audit was unable to confirm that any amounts were devoted to their charitable activities.

The notice of intention to revoke and other letters relating to the grounds for revocation are available to the public on request by calling 1-800-267-2384.

A charity that has had its charitable status 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.

The vast majority of Canadians and registered charities are honest and comply with the law. However, there are those individuals and organizations who seek to exploit the generous tax incentives the government has put in place to support charitable giving. The CRA audits registered charities to ensure they are compliant with the law. The CRA takes fraud seriously. Where fraud is discovered, those participating will face serious consequences which may include criminal charges, monetary penalties, and the revocation of charitable status. Where non-compliance is not fraudulent in nature, those participating may still face serious consequences including monetary penalties, the suspension of tax-receipting privileges and/or the revocation of registered charitable status.

For more information about the registration of Canadian charities, go to the CRA’s Charities and Giving Web page at http://www.cra.gc.ca/charities.

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http://www.cra-arc.gc.ca/nwsrm/rlss/2011/m01/nr110107-eng.html?=eml20110118

News release The Canada Revenue Agency revokes the registration of Revival Time Ministries International as a charity
Ottawa, Ontario, January 7, 2011… The Canada Revenue Agency (CRA) will revoke the charitable registration of Revival Time Ministries International, a Toronto-area charity. The notice of revocation will be published in the Canada Gazette with an effective date of January 8, 2011.

On November 16, 2010, the CRA issued a notice of intention to revoke the charitable registration of Revival Time Ministries International, in accordance with subsection 168(1) of the Income Tax Act. The letter stated, in part, that:

Our audit of Revival Time Ministries International (the Organization) has identified serious non-compliance with the requirements of the Income Tax Act. In particular, throughout the course of the audit significant receipting discrepancies were discovered and the organization provided falsified bank statements to substantiate revenues and expenditures of the Organization.

The Organization was unable to provide a complete record of donation receipts issued. A large number of duplicate copies of receipts were either missing or not maintained. Of the receipts provided by the Organization, serious discrepancies were noted including receipts for gifts of services such as car rentals, and facility rentals. In addition, receipts were issued for food/drink expenses with no corresponding support.

The Organization reported, for the 2006 and 2007 fiscal years, charitable expenditures of $730,663 and $1,432,160 respectively. However, our audit was unable to confirm that any amounts were devoted to the Organization’s charitable activities.

The notice of intention to revoke and other letters relating to the grounds for revocation are available to the public on request by calling 1-800-267-2384.

A charity that has had its charitable status 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.

The vast majority of Canadians and registered charities are honest and comply with the law. However, there are also those individuals and organizations who seek to exploit the generous tax incentives the government has put in place to support charitable giving. The CRA audits registered charities to ensure they are compliant with the law. The CRA takes fraud seriously. Where fraud is discovered, those participating will face serious consequences which may include criminal charges, monetary penalties and the revocation of charitable status. Where non-compliance is not fraudulent in nature, those participating may still face serious consequences including monetary penalties, the suspension of tax-receipting privileges and/or the revocation of registered charitable status.

For more information about the registration of Canadian charities, go to the CRA’s Charities and Giving Web page at http://www.cra.gc.ca/charities.


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