|By Marketwired .||
|December 7, 2012 02:36 PM EST||
OTTAWA, ONTARIO -- (Marketwire) -- 12/07/12 -- The Canada Revenue Agency (CRA) will revoke the registration of New Flame Deliverance Ministries, a Toronto-based charity. The notice of revocation will be published in the Canada Gazette with an effective date of December 8, 2012.
On October 30, 2012, and in accordance with subsection 168(1) of the Income Tax Act, the CRA issued a notice of intention to revoke the registration of New Flame Deliverance Ministries. The letter stated, in part, that:
"The Organization reported revenues of $241,692 in 2009 and $44,279 in 2010. Based on the information reviewed during the audit, the Organization issued official donation receipts for $222,287 in 2009 and $207,931 in 2010 while bank deposits were $23,815.92 and $40,618.12, respectively. Of note was that the Organization had only provided donation receipts totalling $45,753 for 2010 with the balance being obtained from the tax returns of individuals.
During the meeting of December 21, 2011, the President of the Organization admitted to signing and issuing donation receipts for monies which were not received. She also confirmed that she received $12,000 from her accountant as a payment for the purchase of donation receipts."
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 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 registration as a charity. 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 registration.
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.
FOR BROADCAST USE:
The Canada Revenue Agency has announced that it has revoked the registration of New Flame Deliverance Ministries, a Toronto-based charity. The revocation will come into effect on December 8, 2012.
Stay connected (www.cra.gc.ca/socialmedia)
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-- follow the CRA on Twitter - @CanRevAgency;
-- subscribe to a CRA electronic mailing list; and
-- add our RSS feeds to your feed reader.
You can also visit our YouTube Channel for tax-related videos.
Canada Revenue Agency
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