A recent investigation by the National Security and Intelligence Review Agency (NSIRA) has found that the Canada Revenue Agency (CRA) may have audited certain charities for potential terrorism links without clear justification, leading to concerns about bias and discrimination. The NSIRA report, obtained through an access to information request by CBC News, was initiated following allegations that the CRA’s Review and Analysis Division (RAD) unfairly targeted Muslim charities due to bias and Islamophobia.
The NSIRA review highlighted issues with how the RAD selects charities for audits, pointing out a lack of rigor in the division’s processes that resulted in audits of charities with low risks of terrorist abuse. This raised questions about the division’s decision-making process and its compliance with the Canadian Charter of Rights and Freedoms.
According to the report, a significant percentage of charities audited by RAD between 2009 and 2022 were identified as Islamic or Sikh. The NSIRA also noted that the CRA does not gather demographic data necessary to confirm or refute claims of discrimination under the Charter.
The CRA’s RAD determines which charities to review based on various sources of information, such as media reports, intelligence inputs, public tips, and internal referrals. While the watchdog acknowledged the importance of safeguarding the charitable sector against terrorist exploitation, it emphasized the need for RAD to focus its scrutiny on charities at credible risk of terrorism and to follow rigorous methodologies.
The NSIRA report made several recommendations, including collecting demographic data to prevent discrimination in charity audits and developing evidence-based methods for assessing terrorism-related risks in charities. The CRA has acknowledged most of these recommendations and has started implementing changes to enhance the oversight and transparency of its charity audit processes.
In response to the NSIRA findings, the Muslim Association of Canada (MAC) expressed concerns about bias and discrimination in the RAD’s targeting of Muslim charities. The CRA Commissioner, Bob Hamilton, stated the agency’s commitment to fairness and transparency in its charity audit program, stressing its role in supporting the government’s counter-terrorism efforts.
While the CRA has taken steps to address the NSIRA recommendations, the National Council of Canadian Muslims called for further action, advocating for the dismantling of RAD and the implementation of stronger oversight within the CRA to ensure the protection of the rights of Muslim Canadians.