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Politics

    • Muslim charity seeks court shutdown of federal audit, alleging systemic Islamophobia

    A sign outside the Canada Revenue Agency is seen May 10, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld A sign outside the Canada Revenue Agency is seen May 10, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
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    Canada's largest grassroots Muslim organization is asking a court to halt a federal audit of its activities as a registered charity, alleging the probe is discriminatory and violates its charter rights.

    The Muslim Association of Canada is filing a notice of application in Ontario Superior Court in a bid to shut down the Canada Revenue Agency process initiated seven years ago.

    The association, which promotes community service, education and youth empowerment, says over 150,000 Canadians use its mosques, schools and community centres each year.

    The association claims in the court filing that since the revenue agency audit began in 2015, it has been "tainted throughout by systemic bias and Islamophobia."

    The association says in a news release that although no decision has been made, the resulting audit report, which has not been made public, threatens the charity "with extreme sanctions that are completely unjustified by the findings" of the revenue agency.

    The revenue agency, which will have an opportunity to respond in court, has previously said it does not select registered charities for audit based on any particular faith or denomination, adding it is firmly dedicated to diversity, inclusion and anti-racism.

    The Muslim Association's charter challenge will explore instances in which the revenue agency has attempted to apply standards to the association that would not be applied to any other community of faith, said Geoff Hall, a lawyer for the charity.

    "This audit is a textbook example of prejudice and discrimination."

    The association objects to several revenue agency allegations, including that:

    — the association's activities, such as Eid celebrations, are not religious but rather social;

    — its sports, social, and recreational activities directed at youth do not provide a charitable benefit;

    — there are purported links between the association and foreign entities, a finding based on four emails out of tens of thousands reviewed by the agency.

    "In each of these examples and others, the CRA perceives such perfectly normal interactions as sinister and deceptive," the news release said.

    The court filing alleges the audit would never have been approached this way had the organization in question been affiliated with any other major world religion.

    The association stresses that the audit report did not find any evidence the charity is involved in terrorist financing or affiliated with terrorist organizations. "Nevertheless, the audit report relies upon Islamophobic sources and discredited newspaper articles to support its allegations."

    The court application seeks an order halting the audit on grounds that it violates the association's charter guarantees of equality and freedom of religion, expression and association.

    Alternatively, it wants the revenue agency to complete the audit in a way that does not violate the association's rights.

    Almost 100 Muslim organizations and civil society groups sent a letter last summer to Prime Minister Justin Trudeau calling on him to reform the revenue agency's auditing practices, alleging they unfairly target Muslim charities.

    The groups also asked the Liberal government to overturn the revenue agency's decision to suspend the ability of another Muslim charity, Ottawa-based Human Concern International, to issue tax receipts.

    Revenue Minister Diane Lebouthillier agreed during a national summit on Islamophobia to ask the taxpayers' ombudsperson, François Boileau, for a systemic review of the concerns.

    Preliminary meetings have taken place with revenue agency officials and various parties, including charities, to understand their concerns and identify any issues, the office of the ombudsperson said in a recent update.

    More meetings are planned and charities are invited to respond to an online questionnaire about their experiences.

    ANALYSIS
    By John Vennavally-Rao
    Toronto Correspondent, CTV National News

    For Muslim charity groups this has been long standing complaint.

    That they are being treated differently by the Canada Revenue Agency (CRA) compared with registered charities run by groups affiliated with other religions.

    The head of the Muslim Association of Canadians says the charter challenge is part of its responsibility to defend and stand up for the rights of Muslims.

    “We are hoping to see reform in this area,†said Nabil Sultan, the chairman of the Muslim Association of Canada.

    “So that Muslim charities are treated equally and fairly like any other faith based charity in this country.â€

    We spoke with Tim McSorley who is with a coalition of civil liberties groups called the International Civil Liberties Monitoring Group. They put out one of two independent studies on the subject last year.

    McSorley says after Canada boosted attempts to counter terrorist financing post 9-11, a division within the CRA profiled and targeted Muslim charities.

    From 2008 to 2015 they found that post-audits 75% of the charities that had their status revoked were run by Muslim groups.

    He says the system is unfair and not based on actual evidence. Rather one that places suspicion on a charity simply because they are Muslim led.

    “It also appears that Muslim charities face harsher consequences for the penalties… than other charities have faced as well,†says McSorley.

    “That needs to be explored more, but it’s one of the things that we’re very concerned about.â€

    Mahmuda Khan runs Human Concern International based in Ottawa. It’s a Muslim relief charity that’s been temporarily stripped of its ability to issue tax receipts following an audit.

    In speaking with Khan she said the audit was prejudiced and the outcome unfair.

    “Unfortunately charities have no true redress with CRA. We feel they are the judge. They’re the jury. They’re the prosecutor. And too many charities are being affected by this.â€

    A CRA ombudsman is conducting a review of the issues being expressed by Muslim charities. The revenue agency has said it is firmly dedicated to diversity, inclusion and anti-racism.

    The report by The Canadian Press was first published April 13, 2022

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