Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Friday, August 10, 2012

Tides' charitable status questioned

A pro-oilsands industry lobby group with links to the Harper government is urging the Canada Revenue Agency to consider whether Tides Canada, a Vancouver-based environmental and social justice organization, has violated Canada's charity law.

Ethical Oil, in a lengthy legal brief sent to the CRA Wednesday, has accused Tides of "laundering" money from contributors to groups engaged in "noncharitable" political activities.

The Toronto-based group said that this activity, and Tides' alleged political work, means the charity may have violated CRA rules governing Canada's $190-billion charities sector that involves an estimated 86,000 organizations.

Ethical Oil, which has accused environmental organizations of using foreign funds to improperly influence Canadian political debates, wants the CRA to consider denying Tides its charitable status.

A registered charity doesn't have to pay income tax and can issue deductible tax receipts to donors. But the charity is prohibited from engaging in partisan politics and is limited to spending no more than 10 per cent of its money on socalled "political" initiatives aimed at influencing public policy decisions.

"Tides Canada engages in impermissible political activities," the Ethical Oil brief submitted by the Alberta law firm McLennan Ross stated.

The paper cited extensive activities by Tides and the groups it funds to oppose the Harper government's policies regarding the environment and especially the oilsands.

The letter also provocatively argued that Tides acts inappropriately as a "conduit" between donors who get tax breaks and organizations that receive the money even though they aren't registered charities.

"Tides Canada issues charitable receipts on behalf of third party organizations where such organizations are not able to issue charitable receipts in their own name," Ethical Oil asserts.

"In this way, it is laundering tax-privileged funds to non-charitable organizations for non-charitable activities."

In an email, Ethical Oil's Jamie Ellerton said Tidesaided organizations such as People for the Ethical Treatment of Animals, ForestEthics, and the British Columbia-based Tyee news website allowed their donors to obtain tax receipts by contributing through Tides.

"This allows highly political organizations to use Tides' charitable tax benefit for their third-party organization's purposes. That is not charity and maintain this accounting trick concocted by Tides should be reviewed by the CRA."

The money-laundering charge echoes a similar assertion made in April by Environment Minister Peter Kent, who said environmental groups "launder offshore foreign funds for inappropriate use against Canadian interest."

The letter calls on the CRA to prevent the Tides Foundation and its sister organization, Tides Initiatives, from continuing to operate as registered charities.

Tides chief executive Ross McMillan, who confirmed to the media in May that the CRA had already begun an audit of his organization for the 2008-09 years, could not be reached for comment Wednesday on complaints about more recent activities by Tides and its allies.

Original Article
Source: the star phoenix
Author: Peter O'Neil

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