Wouldn't be the first time these groups funnel money to extremist groups.
Canada Muslim charity under CRA microscope for ties to alleged Hamas front
In March 2021, the Muslim Association of Canada (MAC) got mail from the Canada Revenue Agency (CRA) that no charity ever wants to see. In 150 pages, the letter detailed the CRA’s reasons for alleging, mid-audit, various breaches of tax law from 2013 to 2015, ranging from flawed record keeping to improper links to the Muslim Brotherhood and an alleged Canadian front for Hamas.
The letter, which was made public after being filed in a court proceeding brought by MAC challenging the audit,
concluded with a daunting preliminary recommendation: “there are sufficient grounds for the revocation of the Organization’s charity registration.” MAC argued that the CRA conducted an unfair evaluation through a “Protestant-Christian lens” amounting to “systemic Islamophobia,” and that members’ freedom of religion, expression and assembly were violated.
A judge of the Ontario Superior Court of Justice
dismissed MAC’s challenge to the audit in September, permitting the CRA to proceed. In a statement to the National Post on Friday, MAC said it intends to appeal the court’s verdict. It added that the CRA has made a final decision concerning the charity, which has not yet taken effect but “does not in any way affect MAC’s operations.” None of the allegations leveled by the CRA, which are denied by MAC, have been proven.
The CRA’s foremost claim is that MAC violated tax law by “advancing” the cause of the Muslim Brotherhood, an international Islamist movement with political and charitable arms that strives to implement Islamic law. The movement
ascended to political power in Egypt in 2012, only to be
ousted a year later; meanwhile, its Palestinian offshoot
notably evolved into Hamas. Some countries have banned it, such as Egypt, Saudi Arabia and the United Arab Emirates. It has not been banned in Canada (though Hamas is).
One problem, the CRA
said, arose from MAC’s governing documents. Its founding philosophy, according to its bylaws at the time of the audit, traced back to the “intellectual revivalist effort that occurred in the early 20th century” which culminated in the “writings of the late Imam Hassan al-Banna and the movement of the Muslim Brotherhood.” MAC explained to the auditors that it was referring to the broader philosophy of the movement, and not the Egyptian political party. In 2017, it removed any mention of the Muslim Brotherhood from its bylaws.
Some members of MAC’s senior leadership, the CRA alleges, were also “clearly engaging in activities that would be considered in support of the Muslim Brotherhood” which appeared to be manifesting in the organization’s activities and decisions.
Specifically, one former president of the organization was alleged to have worked on a political campaign for the Egyptian Muslim Brotherhood, a fact which the CRA
believed he and MAC tried to conceal. The current president is
said to have had an ongoing connection with senior members of the Muslim Brotherhood, illustrated by emails and conference invitations.
To its credit, MAC
countered that the CRA based its claims on
deficient research which unfairly characterized the Muslim Brotherhood as an “international network embracing radical ideas and violent extremism” by relying on biased academic and news sources. One academic source cited by the CRA, George Washington University extremism expert Lorenzo Vidino (who has previously testified before committee at the House of Commons) was argued by MAC to be tainted with anti-Muslim bias. MAC also argued that emails sent to its president were part of mass mail-out and that its president never attended any Muslim Brotherhood conferences.
Beyond that, the CRA
claimed that until 2013 MAC had been providing resources to the International Relief Fund for the Afflicted and Needy (IRFAN) by allowing it to sponsor events, promoting it over email and giving it a platform to raise funds. IRFAN’s charity registration was revoked by the CRA in 2011, after an audit uncovered that the organization had sent more than $14.6 million to “operating partners that were run by Hamas officials.” By 2014, it was
labelled a terrorist organization due to its support for Hamas.
Further, the CRA says MAC
appeared to have accepted funds from Qatar Charity, which has been known for funding al-Qaida and is considered by Israel to be part of a Hamas fundraising network called “Union for Good.” More broadly, the CRA said MAC allegedly failed to implement an anti-terrorism policy in “a truly meaningful manner.”
MAC denies any such links: “It is categorically false to claim that MAC has ever provided support to Hamas, either directly or indirectly,” it said in its statement Friday. Furthermore, it says the RCMP has had no concerns with MAC’s donations to IRFAN, and that the CRA’s final decision concerning its audit of MAC was “not based on any preliminary findings associated with the Muslim Brotherhood, IRFAN Canada or Qatar Charity.”
The CRA also
alleged that MAC was improperly dedicating an excessive amount of resources to exploring the real estate business and wrongfully bought rental properties to generate revenue (the charity’s property holdings were
estimated to be worth $47 million in 2014). Financial controls were also said to be suspect: the CRA, for example,
found that more than $1 million in charity funds, allegedly, had been given out to “non-qualified donees,” which should translate to a fine in a similar amount.
It’s easy to see why MAC took all this to court. Had it been deregistered, members would have suffered a certain loss of community. But the court challenge has seemed to be a bit of a strategic blunder. MAC
failed to stop the audit from going through, having lost its court challenge in the Ontario Superior Court of Justice in September. Before that, it
tried and failed to seal part of the court record (it had argued, among other things, that disclosure of the CRA’s evidence would harm the “dignity, reputation and physical safety” of Muslim-Canadians), so the CRA’s case is now visible to the world.
The backbone of MAC’s argument just wasn’t convincing enough to call the audit off. It sought to halt the CRA’s audit process midway through largely on the grounds that it amounted to systemic discrimination. This was because rules for charities, and the CRA’s procedure for managing terrorism risk, disproportionately impacted Muslim charities and were therefore unfair. Judge Markus Koehnen, who presided over MAC’s court challenge, ruled that it would be premature to stop the CRA from combing through the file (though he was partially sympathetic).
So, how is the CRA’s audit discriminatory? MAC’s expert witness, University of Toronto Islamic legal scholar Prof. Anver Emon,
believed that Finance Canada’s risk assessment model doesn’t have enough evidence to flag the following countries as being the most likely recipients of terrorism funding from Canada: Afghanistan, Egypt, India, Lebanon, Pakistan, the Palestinian territories, Somalia, Sri Lanka, Syria, Turkey, United Arab Emirates and Yemen. In the current “climate of Islamophobia,” this was a point of concern.
Emon also claimed that
the government has failed to support its list of “terrorist groups with a Canadian nexus,” which it uses to asses charity risk. The list is comprised only of non-white and non-Christian groups, including Hamas, Hezbollah, the Islamic State group, al-Qaida, al-Shabbab, the Tamil Tigers and various Khalistani extremists (which, regardless of their demographic makeup, are still terror groups). Because these organizations were all based abroad, and because Finance Canada didn’t provide evidence to support the list, Emon argued, the CRA’s audit procedure implies that all terrorism risk comes from minorities, most of which are Muslim.
The fact that the government’s focus on foreign, largely Muslim entities when it came to terror financing risk, however, wasn’t necessarily evidence of discrimination, the judge of the court challenge
found.
“It is perhaps not surprising that agencies whose mandate it is to monitor terrorist threats would focus on the more prominent threats at any one time,”
wrote Koehnen. “In recent years, one major source of such threats has involved groups that pervert Islam and falsely cloak themselves in its mantle.”
Indeed, Canada had added white supremacist groups such as Blood & Honour to the terrorism list, but these just don’t seem to be big or globally-popular enough to warrant special CRA scrutiny.
Among the other systemic biases alleged against the CRA, Emon even
found it troublesome that the agency seemed to give greater weight to documentary evidence than spoken word; this reliance on a paper trail indicated an Islamophobic “interpretive bias” because it implied that Muslims were inherently unreliable. The judge didn’t buy this, and
said the CRA’s preference for documents was “standard litigation practice” when contradictory statements are made later on, during litigation.
Concerning MAC’s possible links to the Muslim Brotherhood and other foreign entities, though, the judge wasn’t convinced the CRA had a great case.
“The fact that a donor to a charity also donates money to illegal causes does not mean that the charity is involved in the illegal causes that the donor supports,” Koehnen reasoned.
In addition to that, the judge believed that political activity by former directors of Christian charities was unlikely to lead to the revocation of charity status. However, this was not enough to warrant halting the audit midway through.
“A brief look at the websites of the United, Anglican, Presbyterian and Catholic churches of Canada discloses web links about social action on issues like climate change, the economy, housing, resource extraction, Palestinian rights and LGBTQ+ rights that are similar to statements made by some Canadian political parties,” Koehnen wrote. “No one suggests their charitable status should be revoked because of that.”
MAC’s argument of systemic discrimination wasn’t novel. It was simply
following the reasoning of a Supreme Court decision in 2020 which found that rules that don’t actively discriminate against any one group can still be considered discriminatory if they cause disproportionate outcomes for groups protected under the Charter of Rights and Freedoms.
Depending on how far MAC plans to take its fight with the CRA, it’s possible that the rules for equity could be made to apply to charity finance. If it fails, however, it will have generated a lot of press for nothing.
Muslim Association of Canada blames accusation on 'systemic Islamophobia'
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