Charitable status revoked for 12 B.C. charities linked to single Vancouver company

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Subscriber exclusive: Retired lawyer challenges CRA claim that several foundations were not created or operated primarily for legitimate charitable work.

In one case, the CRA alleged a series of transactions was “entirely orchestrated for the purpose of earning tax credits from the donation” and “protecting the donor from public scrutiny.” The CRA alleged another series of transactions involving a different group of charities was undertaken to help a wealthy donor with tax planning and “had no apparent charitable purpose or public benefit.”

Kate Bahen, managing director of Charity Intelligence, which researches and analyzes Canadian charities.The tax savings can be substantial, said Kate Bahen, managing director of Charity Intelligence, which researches and analyzes Canadian charities. Those linked to Bromley and Benefic who have directed or received tax receipts from the now-revoked charities include an Order of Canada recipient, a mining tycoon, the founder of a high-end condo development company, and a software magnate.Article content

Bromley said that before his retirement five years ago, his primary focus was encouraging donors make large gifts to fund charities. The CRA said it would not confirm which charities were appealing revocation and which were winding down and paying a so-called revocation tax. The CRA’s charities auditors often make mistakes in their interpretation of law or policy, says Sebastian Elawny, a Calgary lawyer who has helped several charities navigate CRA audits. And the CRA’s allegations are not always upheld.

The revocations facing the 12 charities is an administrative penalty. The CRA also can, and does, pursue criminal charges where it considers that warranted. CRA figures show there were 23 convictions for tax evasion in Canada between April 2021 and March 2022, with 10 individuals sentenced to jail.

 

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Charitable status revoked for 12 B.C. charities linked to single Vancouver companyRetired lawyer challenges CRA claim that several foundations were not created or operated primarily for legitimate charitable work. Tip of the iceberg. We are grateful to our subscribers for their support of local journalism. If you are interested in subscribing, click here to find out how to get digital access to both The Vancouver Sun and 16 other Canadian media sites including the National Post: These types of actions happen all the time. For protecting any business transaction, or owner from public scrutiny, what they will do is file a beneficial ownership at the lawyers office to hide the true owners identity.
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