The Jewish National Fund of Canada (JNF) is suing the Minister of Revenue, claiming that the decision to strip it of its charitable status was “flawed and fundamentally unfair.”
“Today’s legal complaint ensures that JNF Canada’s concerns will be considered before a fair legal process,” said JNF national president Nathan Disenhaus. A statement released on Thursday.
The Canada Revenue Agency (CRA) conducted an audit of JNF Canada’s operations following complaints that the company had used charitable donations to build infrastructure for the Israel Defense Forces (IDF) in violation of Canadian tax law.
The JNF funds numerous projects across Israel, including reforestation and playground construction, but it also funds infrastructure projects at the country’s army, air force and naval bases, as CBC News reported in 2019.
In its guide for Canadian-registered charities operating outside Canada, the CRA clearly states that “enhancing the effectiveness and efficiency of the Canadian Armed Forces is a charitable act, but supporting the military of another country is not.”
JNF filed a notice of appeal in Federal Court on Thursday to overturn the CRA’s decision.
In its submission, the JNF said ministers were “under significant public pressure” to strip the charity of its status, resulting in the CRA’s final decision being biased.
Court documents state the decision to strip JNF of its charity status “should be set aside or set aside on the grounds that there is a reasonable concern that the Minister’s decision is biased”.
Decision ‘unfair’: Disenhouse
According to JNF’s submissions, ministers first informed JNF of their intention to revoke its charitable status in 2019. In a media statement released on Thursday, JNF said it had demonstrated a “willingness to work with the CRA” over several years and had made changes to its operations “despite disagreeing with the CRA’s position”.
A media statement said the minister’s decision to strip the organization of its charity status “undermines the fundamental rights of all Canadians.”
“Our position is that it is unfair to revoke a charity because a charity the CRA approved nearly 60 years ago is no longer considered a valid charity,” Disenhaus said in a statement.
The JNF said it was willing to work with the CRA to find a solution outside of legal proceedings.
The CRA told CBC News it assesses any concerns about registered charities “through a clear regulatory and risk framework designed to prevent bias in the decision-making process.”
The agency said it does not comment on specific details of cases pending in court.
CBC News reached out to Revenue Minister Marie-Claude Bibeau, whose office said it had nothing to add beyond the CRA’s statement.
The JNF has applied to have the case heard in Toronto.
The Independent Jewish Voice of Canada said the CRA’s decision to strip JNF of its charitable status was a “long overdue decision.” The organization said it cooperated with four complaints against JNF filed with the CRA, which it said triggered the audit.
“Independent Jewish Voice is thrilled to join our allies in delivering this major blow to an illegal Zionist charity in Canada,” Sue Goldstein said in a press release.
Meanwhile, the Center for Israel and Jewish Affairs (CIJA) expressed support for the JNF, saying it had “compelling reasons to downplay its troubling experiences with the CRA.”
“CIJA is hopeful that JNF and CRA will ultimately find a constructive solution that will allow JNF to continue its important work, from poverty relief to environmental restoration,” CEO Simon Kofler-Vogel said in a statement.
