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The Canada Revenue Agency has launched a political-activities audit of Pen Canada, a small charity promoting freedom of expression that has criticized the Harper government in the past.
Two tax auditors showed up Monday morning at the tiny Toronto offices of Pen Canada, asking to see a wide range of internal documents.
The basis for the audits is a 2003 policy that states charities are permitted to spend up to 10 per cent of their resources on political activities. According to CP, PEN “officially reported just $237,000 in expenses for 2011–12 in its latest filing with CRA, none of it going to political activities.” PEN Canada’s president, Philip Slayton, told the CP that the rules “are vaguely formatted,” but he believes the organization has conducted itself accordingly.
The CP reports that critics say the audits have a political motivation, targeting charities critical of the government:
The wave of audits was announced by the federal government in the 2012 budget, and some groups have been under threat of losing their charitable status for more than two years. The list of targets includes Amnesty International Canada, the Canadian Centre for Policy Alternatives, Canada Without Poverty, and the David Suzuki Foundation.
The Canada Revenue Agency says its work is conducted without political direction from government…
An investigation by The Canadian Press has found numerous charities targeted with political-activity audits, from environment to international aid and human-rights groups. Many say they are being slowly drained of cash for legal and other costs, and fear speaking out.
Some have been critical of the Harper government’s policies, especially regarding pipelines and the oil sands, and have been labelled “radical” and “money launderers” by senior Conservative cabinet ministers.
Agencies/Canadajournal
