A copy of the relevant provisions in the Act on cancellation of registration. . mcludlng appeals from a notice of intent to revoke registration is found 1n Appendix "B attached. The notice must be filed and the fee must be paid on or before the day that is one year from the date of the notice of intent to revoke. The relevant provisions of the law relating to the tax to be applied to revoked charities can also be found in Schedule "B".
Subsection 149.1(1) of the Act requires a charity to use all its resources for "charitable activities carried on by the organization itself." They reacquired the mosque under 11, ownership of 1\tfSA .lrlamic Services of Canada, and the mosque reopened in June 19 n. Furthermore, our analysis of the information available to the CRA indicates that the major operational and financial decisions regarding the Jami- the mosque does not belong to the organization.
A review of the minutes of CITF's board of directors meetings suggests that CJTF has had operational control of Jami Mosque since at least January 1992. Khadim recommended that the over/lt!r decision of the Majlis should be reversed and the C{ {F Council lnnk to the affairs of the Jami Mosque.
Islamic Book Service
Courts far. after a review of the available information, the CRA is unable to realize that the Islamic Book Service is in fact the Organization's own program. A review of the minutes of CITF's board of directors meetings suggests that, at least historically, CITF has had responsibility for the. The presentation and discussion of Islamic Book Service's financial statement:<. . nnd/or sales results are recorded as a regular agenda item on CJTF board of.
CITF has introduced a sales commission incentive program for the Manager of the Islamic Book Service as a way to encourage greater sales. C'ITF has drawn up guidelines for Islamic Book Ser.rice's operations. including the policy on the appointment of its manager.46. ClTF decided on the suppliers to be used by Islamic Book Service, including for the Jllmi Mosque IocationY. 34;To\M eapcndillra .aribuuble to Islamic Book Service, per 1hc Orpnizatian'J ,onml lodger l'or eact1 or1he n!Cll periods arc 115 foll~. Like 3uch, the CClA - in 11.SS~ing considered the chari~blc: naiurc of lhc Ofla.oizalion's activi1ic:s -information provided 10 I.lie CllA by CIT-f.
Acco.1dil\g lo rhc documents available: for CR.A. IBS was last mentioned by CITF in March 2001. Khalul makes \Jnihireral decisions for lBS and that he himself signs for both lhc IBS n By issuing invoices in such a non-sequential manner, the Organization failed to ensure continuity in serial numbers from one period to another. This makes it impossible for the CRA to verify the completeness of donation receipts in a given period in order to determine whether all official donation receipts were received. Therefore, it is our preliminary view that the Organization failed to maintain adequate duplicate invoices for the CRA to verify whether the donation invoices issued by the Organization were in accordance with the Act and its Regulations, and, as a result, whether the Organisation. must maintain its registration as a charity. Therefore, it is our preliminary view that the organization failed to maintain proper duplicate donation receipts to the CRA to verify whether donation receipts issued by the organization were in compliance with the Act and its provisions and, as a result, whether the organization should maintain its registration as a charity. organization. Regulation JSOI( I), may on its own not in rtYOGlllion or dmiuiblc suits, b111., nondhc:les5, is. Conclusion KIAOL5 CRA concludes on page I I that "In view of the above, CRA is unable to conclude that the ui.:activities carried out at Jami Mosque arc. Mosque] can actually be proposed on 1hc ba~i~o rhc Charity. . anc.l thar Jami Mosque and tJ1e Charity are independent of each other. CRA has now taken a contrary position after the audit period to he alleged earlier 1:iken hy CRA's uggcsrmg that fomr the mosque i.~ nol an activity of !he Charity . Ch~rity may have inconsistently analyzed the relationship between the two corporations, II remains the Chanty Which functions functionally.~ Jami Mosque. The AFL did not say that the noJOs consistently described the operation of the Jami Mosque. his own activity. In addition, all the accessories listed on the T3010s are expenses related to the operation of Jami Mosque. This will be done because the Charity employs •:md pays all employees for the operation of the Jnmi Mosque. Whereas the Charity employed emptoyec;; .. in connection with the 1 work of the Jhumti Mosque, and were paid the proper wages, ii i:, unclear how the opening of the Mosque The Mosque is an "own operator" of the Charity. While 1he Af-L notes that 1he Charicy's charitable intentions would not seem 10 permit the operation of a mosque. purpose c) refers to the operation of prayer meetings. and purpose b) mak~s. The conclusion that the charity issued receipts 011 hchalf of the Jami Mosque is uwec.J m pan 10. The Mo~que has heen oper.iteu as an acl1 vity of the charity by virtue of the fact that 1the employees are al I employed and paid by the charity. M~quc during the 1e Aud it Period or later, as Jami Mosque has no bank account and al donation~. OPTIONS FOR CRA TO CONSIDER 1 of the Organization Act. . However. has been granted charitable registration by the CRA as a charitable organization". Jami Mosque, the Organization's representations raised the following points. It was agreed to conduct the audit interview of the organization in connection with the Jami Mosque on November 30, 2011. As a result, the CRA is unable to conclude that the activities carried out in the Jami Mosque are in fact and legally those of the organization own activities, being carried out by the organization itself. It is further our view that the Organization's representations relating to the operation of the Islamic Book Service similarly do not allay the concerns expressed in our AFL.24. This is sufficient reason to revoke the Organization's status as a registered charity under paragraph 168(1)(b) of the Act. 340,516 of the $515,166 reported on the Form T3010s, raising concerns that the Organization failed to retain a duplicate copy for each receipt it issued. The meeting in which the Organization provided for the CRA's review was that of the Executive Committee of the Islamic Center of Toronto - Jami Mosque, a separate one. While one of the leaders of the Organization was also a member of the Executive Committee for the end of 2007 and 2008. Given that the leaders of the Organization constituted only 20% to 40% of the Executive Committee of Jamia Mosque. Therefore, the Organization failed to show that it kept "records of [its] decisions concerning the operation of the [Organizat1onl". as he claimed. The organization has not met the requirements of section 230, subsection of the Act. The organization has failed to demonstrate that the operation of the Jami Mosque was an activity of the organization. The organization argued that the Jami Mosque has been run as an activity of the organization by virtue of the fact that the employees are all employed and paid by the organization (point no. 2). The organization indicated in the pre-audit interview that many of the funds raised for the Jami Mosque Relief Fund were collected by the Mosque in collaboration with another third-party organization. Therefore, it is our opinion that the Organization issued donation receipts in violation of Act and Regulation 3501. The person who, after the expiry of 120 days before the end of the tax year for a charitable organisation, which pursuant to subsection charity for the tax to be paid in accordance with subsection 189(6) Taxpayer to file return and pay tax 189(6.1) Revoked charity to file returns 189 (6. 2) Reduction of revocation tax liabilityFailed lo maintain adequate books and records for receipted dou:atioo :1mounts
Failed to mamlain records or minutes of its board of directors meetings The Organization failed to maintain records or minutes of its Board of Directors
TTENTION
CONCLUSION
149.1(4) Revocation of registration of private foundation
B where
