B.C. charity fighting the feds in court after CRA revoked status

One of the 12 B.C. charities recently revoked by the Canada Revenue Agency has fought back against the federal government on multiple fronts, including accusing Canada’s minister of national revenue of “an abuse of process and abuse of discretion.”

CRA auditors allege that Stewards’ Charitable Foundation and two other charities connected to a prominent Fraser Valley businessman and philanthropist engaged in “a set of circular transactions” moving millions of dollars of assets between them and other related entities, with the charities not using their resources for charitable purposes but in service of “a private tax planning arrangement.”

Those three charities — Stewards’, Oak Tree Foundation, and the John and Lorena Redekop Foundation — all received notice on the same day last September of the CRA’s intention to revoke their status for alleged breaches of Canada’s income tax laws.

Those three charities were among 12 charitable foundations revoked by the CRA in recent months, all connected with now-shuttered Vancouver company Benefic Group, which provided services to charities and wealthy donors. Representatives for Oak Tree and Redekop Foundation said they are winding down operations following the CRA’s decisions. But Stewards’ Charitable Foundation is fighting the revocation.