Canada Revenue
gence
du
revenu
gency
u
Canada
Carters Professional Corporation
211
Broadway Orangeville, Ontario
L9W
1K4 Attention: Mr. Ryan Prendergast
Subject Notice
o
Intention to Revoke The Canadian Islamic Trust Foundation
Dear Mr. Prendergast:
REGISTERED MAIL
BN: 125104976RR0001 File No: 0801985
MAR
O
2 17
We are writing further to the audit
of
the books and records
of
The Canadian Islamic Trust Foundation (the Organization) for the audit period January
1
2007 to December 31, 2009, and our letter
of
June 16, 2014 (copy enclosed), in which you were invited
to
submit representations as to why the registration
of
the Organization should not be revoked in accordance with subsection 168(1)
of
the
ncome
Tax
ct
(the Act). We have now reviewed and considered your written response dated November 18, 2014. However, notwithstanding your reply, our concerns with respect to the Organization s noncompliance with the requirements
of
the Act for registration as a charity have not been alleviated. Our position is fully described in Appendix
A
attached.
Conclusion
The audit by the Canada Revenue Agency (CRA) has revealed that the Organization is not complying with the requirements set out in the Act. In particular, it was found that the Organization had failed to demonstrate that it was constituted for charitable purposes, failed to demonstrate that it devoted its resources to charitable activities carried out in furtherance
of
its charitable purposes, failed to demonstrate that it devoted its resources to charitable activities carried on by itself, failed to maintain adequate books and records, issued a receipt for a gift
or
donation on behalf
of
a non-qualified donee, and failed to file an information return as required under the Act. For all
of
these reasons, and for each reason alone, it is the position
of
the CRA that the Organization no longer meets the requirements necessary for charitable registration and should be revoked in the manner described in subsection 168(1)
of
the Act Consequently, for the reasons mentioned in our letter dated June 16, 2014, we wish to advise you that, pursuant to subsection 168(1)
of
the Act,
we
propose to revoke the registration
of
the
anada
R350
E
(08)
-2-
Organization. By virtue
of
subsection 168(2)
of
the Act, revocation will
be
effective on the date
of
publication
of
the following notice
in
the
Canada Gazette: Notice
s
hereby given, pursuant
to
paragraphs 168 /) b), 168 J) c), 168 /) d), and 168 l) e)
o
he Income Tax Act, that I propose
to
revoke the registration
o
the organization listed below and that the revocation
o
registration is effective on the date
o
publication
o
his notice.
Business number
125104976RROOOI
Name
The Canadian Islamic Trust Foundation
.
Should you wish
to
object to this notice
of
intention to revoke the Organization's registration in accordance with subsection 168(4)
of
the Act, a written notice
of
objection, which includes the reasons for objection and all relevant facts, must be filed within
90 days
from the date
of
this letter. The notice
of
objection should be sent to: Tax and Charities Appeals Directorate Appeals Branch Canada Revenue Agency 250 Albert Street Ottawa ON
KI
OLS
Notwithstanding the filing
of
an objection, a copy
of
the revocation notice, described above, will
be
published in the
Canada Gazette
after the expiration
of
30 days
from the date this letter was mailed. The Organization's registration will be revoked on the date
of
publication. A copy
of
the relevant provisions
of
the Act concerning revocation
of
registration, including appeals from a notice
of
intent to revoke registration can be found in Appendix B , attached.
Consequences
o
revocation
As
of
the effective date
of
revocation: a) the Organization will
no
longer be exempt from Part I tax as a registered charity and
will no longer be permitted
t
issue official donation receipts
This means that gifts made to the Organization would not be allowable as tax credits to individual donors or as allowable deductions to corporate donors under subsection 118.1(3), or paragraph 110.l(l)(a),
of
the
Act.
respectively; b) by virtue
of
section 188
of
the Act, the Organization will be required to pay a tax within one year from the date
of
the notice
of
intention to revoke. This revocation tax is calculated on prescribed Form T2046,
Tax Return Where Registration
o
a Charity
s
Revoked
(the Return). The Return must be filed, and the tax paid, on or before the day that is one year from the date
of
the notice
of
intention to revoke. The relevant provisions
of
the Act concerning the tax applicable to revoked charities can also be found in Appendix B . Form T2046 and the related Guide RC4424,
Completing the
-3-
Tax Return Where Registration
o
a Charity is Revoked
a
re
available on our W
eb
site at www.cra-arc.gc.ca/charities;
c)
th
e Organization will no longer qualify as a charity for purposes
of
s
ub
section 1
23(l)
of
th
e
Excise Tax Act.
As
a r
es
ult,
th
e Organization
ma
y be subject
to
obligations and entitlements under t
he
xcise Tax
Act
that a
ppl
y to organizati
ons
other
th
an cha
riti
es.
If
yo
u have any q
ue
stions about
yoUF
Go
ods and Services
Tax/
Harmonized Sales Tax (GST/
HST
) obligations and entitlements,
pl
ease ca
ll
GST/HST Rulings at 1-888-830-7747 (Quebec) or
1-
800-959-8287 (rest
of
Canada). Finally, we wish
to
advise that s
ub
section 150(1)
of
th
e Act requires that every corporation
(other than a corporation that was a registered charity throughout the year)
file
a return
of
income with the Minister
in
the prescrib
ed
form,
co
ntaining prescribed in
fo
nnation,
fo
r each taxation year.
The
return
of
inc
ome
must
be filed
without
noti
ce or demand. Yours
si
ncerel
y
~·7~
ony
Man
co
ni
Director General
Charities Dir
ec
torate Attachment
s:
-CRA
s
AFL, dated June 16, 2014
-Or
ga
nization s Representations, dated No
ve
mber 18, 2014
-Appendix
-
C.
RA
position on representations
-A
ppendix
B -
Re
le
vant provisions of
th
e Act c.c.:
M
r.
Shameem Mohammed