(Canadian Press) A Muslim charity is asking a court to freeze a federal suspension, which prohibits it from issuing tax receipts, while a challenge of the penalty plays out.
Ottawa-based Human Concern International says the one-year suspension levied last month will cause “irreparable harm” to the organization and thousands of beneficiaries.
The Canada Revenue Agency penalized HCI following an audit by the agency’s charities directorate that flagged concerns about six initiatives.
The agency accused the charity of improperly issuing donation receipts totalling more than US$307,000 on behalf of organizations administering the six projects — a practice known as third-party receipting.
The initiatives included three education and health projects in India, education and skills development of orphans in Bangladesh, orphan support in Somalia and an education project in Kenya.