On 13th April, the Canada Revenue Agency announced that it had issued a one-year suspension to the International Relief Fund for the Afflicted and Needy-Canada (IRFANCanada).

A charity that has been suspended cannot issue donation receipts for income tax purpose, or accept gifts from other registered charities.

What follows is a statement by IRFAN-Canada in response to the CRA suspension.

Despite speculation to the contrary, it is essential to note that CRA has not suspended IRFANCanada based on any findings of improper uses of charitable donations or association with illegal individuals or organizations.

CRA has cited some deficiencies in record keeping and production, which IRFAN-Canada believes to be minor, to justify this exercise of its broad powers under the ITA. For example, out of the thousands of items that were demanded by CRA, less than a few dozen items that are under the control of foreign banks and foreign telephone companies remain at issue. These items account for less than 0.2 per cent of its financial transactions from 2005 to 2008. IRFAN-Canada believes that it is for this reason that CRA chose to only suspend receipting privileges instead of proceeding with revocation.

IRFAN-Canada will continue to co-operate fully with CRA's ongoing audit in order to respond to any concerns raised by CRA, and is committed to improving its policies and procedures to ensure continued compliance with the ITA. IRFAN-Canada is confident that a fulsome examination of the charity's books and records and its due diligence procedures will evidence IRFAN-Canada's long-standing commitment to providing financial, material support and relief to the poor and destitute in areas affected by conflict and natural disaster throughout the world.

Despite the suspension of receipting privileges, IRFANCanada's donors can continue to have full confidence and trust in the organization's management to assure that their contributions are used in a legal and effective manner. IRFAN-Canada still remains a registered charity that can lawfully receive donations from the public and deliver vitally important programs and services to tens of thousands of poor and needy people. ■