A recent investigation by the National Security and Intelligence Review Agency (NSIRA) revealed potential biases in the Canada Revenue Agency’s (CRA) selection of charities for audits related to terrorism financing. The NSIRA report, obtained by CBC News, was prompted by allegations of discriminatory practices within the CRA’s Review and Analysis Division (RAD), particularly against Muslim charities.
Concerns were raised regarding the lack of transparency in RAD’s audit selection process, leading to audits of charities with minimal credible risks of terrorist involvement. This raised doubts about the division’s decision-making and compliance with the Canadian Charter of Rights and Freedoms.
Data from completed audits between 2009 and 2022 showed a significant focus on Islamic charities by RAD, with 67% of audited organizations being identifiable as Islamic. The report highlighted the absence of demographic data collection within the CRA to address claims of discrimination effectively.
The CRA’s RAD determines audit targets based on various sources, including media reports, intelligence inputs, public tips, and internal referrals. Despite the unit’s mandate to safeguard charities from terrorist exploitation, the NSIRA report emphasized the necessity for rigorous methodologies to target charities genuinely at risk.
The NSIRA report made recommendations for the CRA to enhance its audit processes, including the collection and utilization of demographic data to prevent discrimination and the development of evidence-based criteria for evaluating terrorism-related risks in charities.
In response to the report, the CRA acknowledged the need for improvements in its audit practices and committed to enhancing oversight to ensure fairness and transparency. However, stakeholders like the Muslim Association of Canada (MAC) and the National Council of Canadian Muslims called for more significant reforms, expressing concerns about RAD’s accountability and potential Charter violations against Muslim communities.
