CRA revokes registration of Help Eliminate Disease and Addiction Canada as registered charity
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The Canada Revenue Agency has revoked the registration of Help Eliminate Disease and Addiction Canada as a registered charity.
Here is the notice from the Canada Gazette:
CANADA REVENUE AGENCY
INCOME TAX ACT
Revocation of registration of a charity
The following notice of proposed revocation was sent to the charity listed below revoking it for failure to meet the parts of the Income Tax Act as listed in this notice:
“Notice is hereby given, pursuant to paragraphs 168(1)(b), 168(1)(c), 168(1)(d) and 168(1)(e) of the Income Tax Act, that I propose to revoke the registration of the organization listed below and that the revocation of registration is effective on the date of publication of this notice.”
Business Number 843940990RR0001
Name Address HELP ELIMINATE DISEASE AND ADDICTION CANADA, VAUGHAN, ONT.
Here is a press release The Canada Revenue Agency revokes the registration of Help Eliminate Disease and Addiction Canada as a charity
The Canada Revenue Agency revokes the registration of Help Eliminate Disease and Addiction Canada as a charity Ottawa, Ontario, May 4, 2012. . .
The Canada Revenue Agency (CRA) will revoke the charitable registration of Help Eliminate Disease and Addiction Canada, a Toronto area charity. The notice of revocation has been published in the Canada Gazette with an effective date of May 5, 2012.
On March 23, 2012, the CRA issued a notice of intention to revoke the charitable registration of Help Eliminate Disease and Addiction Canada, in accordance with subsection 168(1) of the Income Tax Act. The letter stated, in part, that:
The Canada Revenue Agency’s (CRA) audit has revealed that the Organization is not complying with the requirements set out in the Income Tax Act. In particular, it was found that from January 1, 2008 to December 31, 2009, the Organization issued in excess of $113 million in receipts for medicine units received through the Relief Lending Group Program tax shelter gifting arrangement. However, it is our position that receipts were issued for amounts far in excess of the actual value of the property. The Organization’s records fail to substantiate that the values recorded on the receipts were accurate, or that the property was actually received, used or distributed in the quantities reported by it.
For its participation and tax receipting abilities, the Organization received approximately $3.5 million in cash. Of this amount, the majority was paid to the tax shelter promoters as fundraising fees, to related third party companies as administrative fees and used for the personal benefit of the directors. The Organization devoted a mere $138,000 on its own charitable purposes.
Our audit has also revealed insufficient separation between the Organization’s operations and the personal business and financial interests of those responsible for its operation. In particular, the Organization has entered into collusive arrangements with directors and related parties as well as the tax shelter program promoters. Those arrangements have resulted in substantially all of the actual cash received being diverted into the hands of the promoters and related companies rather than used for charitable purposes.
The notice of intention to revoke and other letters relating to the grounds for revocation are available to the public on request, in the language they were originally written, by calling 1-800-267-2384.
A charity that has had its charitable status revoked can no longer issue donation receipts for income tax purposes and is no longer a qualified donee under the Income Tax Act. The organization is no longer exempt from income tax, unless it qualifies as a non-profit organization, and it may be subject to a tax equal to the full value of its remaining assets.
Registered charities perform valuable work in our communities, and Canadians support this work in many ways. The CRA regulates these registered organizations through the Income Tax Act and is committed to ensuring that they operate in compliance with the law. When a registered charity is found not to comply with its legal obligations, the CRA may revoke its registered status under the Income Tax Act.
The CRA is reviewing all tax shelter-related donation arrangements (for example, schemes that typically promise donors tax receipts worth more than the actual amount of the donation), and it plans to audit every participating charity, promoter, and investor. For more information about tax shelters, go to the CRA’s Tax alert Web page at http://www.cra.gc.ca/alert.
For more information about the registration of Canadian charities, go to the CRA’s Charities and Giving Web page at http://www.cra.gc.ca/charities.
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FOR BROADCAST USE:
The Canada Revenue Agency has announced that it will revoke the charitable registration of Help Eliminate Disease and Addiction Canada, a Toronto based charity. The revocation will come into effect on May 5, 2012.
Canada Revenue Agency
Here is an interesting press release HEDAC:
“Toronto/New York –Help to Eliminate Disease and Addiction Canada [“HEDAC”], is proud to announce the signing of an historic agency agreement with Housing Works. This agreement marks HEDAC’s ongoing commitment to Canadian donors, to the Canadian Government, and to the world, to effect ever-increasing, large-scale, transborder donations of essential life-saving medicines to people living with HIV and AIDS globally. By forming a strategic alliance with the leading U.S.-based AIDS charity, who is committed to ending the twin crises of AIDS and homelessness, HEDAC will now be able to add another hemisphere to its list of worldwide recipients beyond those suffering in Sub-Saharan Africa alone, and will now be able to ensure medications finally reach the victims of the recent earthquake in Haiti.
Housing Works is led by President and CEO, Charles King, one of the preeminent leaders in the fight against AIDS in the United States. Stephen C. Mortfield, Director of HEDAC, along with Raymond Adelson, the Strategic Liaison between HEDAC and leading international charities, and Shy Kurtz, LLB, BCL, Charity Spokesperson and Chief Fundraising Consultant for HEDAC, spearhead this partnership; marking the first international collaboration and emergency response of this magnitude to the Haitian AIDS crisis since the earthquake.
This historic donation, consisting of antiretroviral, antifungal, and antibiotic medications, will enable immediate and ongoing relief for at least 500 Haitians. HEDAC has further committed that it will supply enough medication for several times that number of suffering Haitians—on an ongoing basis—upon Housing Works’ successful rollout of this first dispatch, which will include a collaboration with key international organizations. These openhanded organizations are already coming together to form larger and more efficient distribution channels so that delivery and need in the region will ultimately converge, leaving no man, woman, or child without access to medicine.
HEDAC chose Housing Works specifically for its phenomenal reputation, passion, and ability to recruit, organize, and mobilize distribution networks, and to locate, reach, and care for those most in need on the ground. Distribution will be closely monitored, tracked, traced, audited and reported, ensuring that medicines will finally be placed directly into the hands of those in need. HEDAC looks forward to a long and beneficial collaboration with Housing Works, and plans to continue extending its efforts in other life-prolonging and life-saving partnerships.
From over 83,000 registered Canadian charities, this donation serves to highlight HEDAC’s rank as the number 2 charity in Canada. Highlighted in terms of how much of one’s donation actually goes to the cause, as per the Canada Revenue Agency’s public statistics, as was recently showcased in the January 2010 issue of MoneySense Magazine.
HEDAC is quickly gaining international acclaim for the unrivaled success of its hybrid fundraising techniques, colloquially referred to as “the new philanthropy”. By relying on proprietary methods that combine mathematic, legal, and economic principles, HEDAC has created a never-before-used and efficient model to fundraise that stimulates the local economy, while helping the world. By aligning interests of donors and charities, and by merging for-profit with not-for-profit economies, HEDAC is putting theory into practice, benefiting from the new-age economies created for the purposes of donation, rather than for the purposes of consumption.”