The Canada Revenue Agency (CRA) relied on anonymous complaints in its audit of the Jewish National Fund (JNF), a prominent Canadian charity, leading to the revocation of its charitable status last August.
Blacklock's Reporter says the JNF claims these complaints unfairly influenced the outcome, according to newly obtained Access to Information records.
“The organization believes the Canada Revenue Agency did not apply an appropriate standard and approach because it was influenced by the negative and misleading views encompassed in the campaigns and complaints against the organization,” the JNF said.
“It is the organization’s position that those campaigns and complaints made their way into the records of the Canada Revenue Agency and tainted the audit.”
The CRA acknowledged the use of anonymous leads in its audit process.
“A taxpayer can submit a lead anonymously, but if they choose to identify themselves their identity is kept confidential,” it stated.
“The Charities Directorate reviews and considers all leads related to charities.”
The JNF, a registered charity since 1967, has long been known for its high-profile fundraising events, including annual Negev Dinners attended by Canadian prime ministers since John Diefenbaker.
It has supported various charitable projects, such as medical clinics, parks, and playgrounds in Israel.
“An important objective of the charity is to provide an opportunity for Canadian Jews to form a meaningful and sustained connection with the land of Israel, the religious homeland of the Jewish people,” the JNF explained to auditors.
“By funding and supervising specific projects in Israel, the charity is able to connect Canadian donors to the finished projects.”
The CRA audit faulted the JNF for insufficient documentation, noting many records were in Hebrew, and for a lack of “direction and control over its funds sent to Israel.”
Auditors also flagged projects like the 3,200-hectare Canada Park outside Jerusalem and other works in the Golan Heights, citing concerns about operations in what they described as “occupied Palestinian territory.”
“It is our position that establishing and maintaining physical and social infrastructure elements and providing assistance to Israeli settlements in the occupied territories serves to encourage and enhance the permanency of the infrastructure and settlements and appears to be contrary to Canada’s public policy and international law on this issue,” the CRA wrote.
The JNF is appealing the decision in the Federal Court of Appeal, where a ruling is pending.
In a separate case, the CRA also revoked the charitable status of the Ne’eman Foundation Canada, based in Thornhill, Ontario. Auditors alleged the Foundation provided indirect support to the Israeli Defence Forces, a violation of Canadian charity regulations.
The Ne’eman Foundation disputed the findings, asserting its programs assisted the impoverished, some of whom happened to be former military personnel. “Israel is a country that closely identifies religion with the land,” the Foundation stated.