CRA revokes registration of 2 charities

The Canada Revenue Agency is revoking the registration of The Life Centre Word of Faith Ministries, a Toronto-based charity.

On March 25, 2013, and in accordance with subsection 168(1) of the Income Tax Act, the CRA issued a notice of intention to revoke the organization’s registration. The letter stated, in part, that:

“The [CRA’s] audit has revealed the organization isn’t complying with the requirements of the Income Tax Act. In particular, it…failed to maintain adequate books and records to substantiate its reported revenue and expenditures, as well as to support its charitable activities.”

It added, “The audit revealed the Organization’s resources were not devoted strictly to charitable activities, and were used to confer undue benefits on a director and his family. The organization…participated in a series of improper investments with corporations owned and operated by its director, Marlon (Gary) Hibbert and his family.

This past August, the OSC found Hibbert “perpetrated a fraud on investors contrary to subsection 126.1(b) of the Act (Securities Act R.S.O. 1990 c.S.5), and contrary to public interest. Hibbert [also] misled staff contrary to subsection 122(1)(a) of the Act (Securities Act R.S.O. 1990 c.S.5) and contrary to public interest.”

Read: Ontario pastor defrauds clients out of $8 million

The CRA says its decision isn’t reliant on the OSC’s. However, its “audit findings are consistent with those of the OSC to the extent that Hibbert used the funds of the charity for his own private gain.”

The CRA is also revoking the registration of London-based charity Trinity Global Support Foundation. An recent audit found the organization issued tax receipts improperly with respect to its participation in two donation arrangements. Read more.

Staff

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