The Canada Revenue Agency’s scrutiny of certain charities for potential terrorism ties lacked clear justifications, leading to concerns of bias and discrimination, according to a report by the National Security and Intelligence Review Agency (NSIRA). The investigation was prompted by allegations of unfair targeting of Muslim charities by the CRA’s Review and Analysis Division (RAD) based on bias and Islamophobia.
NSIRA’s findings revealed that RAD’s auditing processes lacked rigor, resulting in audits of charities with questionable terrorist risks, contrary to the CRA’s claims of focusing only on high-risk organizations. This raised doubts about the division’s decision-making rationale.
The report highlighted that the CRA risked breaching the Canadian Charter of Rights and Freedoms due to the lack of demographic data collection to address discrimination claims. It also emphasized the importance of RAD maintaining strict scrutiny on charities genuinely at risk of terrorist exploitation.
The CRA’s RAD determines audit targets based on various sources like media, intelligence partners, and public tips to assess terrorism-related risks and decide on further actions. Despite the watchdog acknowledging the necessity of scrutinizing charities, it noted instances where RAD’s activities introduced bias and discrimination risks.
NSIRA recommended improvements such as collecting demographic data to prevent discrimination and developing evidence-based methods to validate terrorism-related risk indicators. The CRA acknowledged most of the recommendations and has initiated changes to enhance RAD’s processes and oversight for a fairer charity audit program.
Amid calls for dismantling RAD by some groups like the National Council of Canadian Muslims, the CRA reiterated its commitment to transparency and fairness in its charity audit operations, emphasizing its role in supporting national counter-terrorism efforts.
