NOTE: This is a press release issued by Senator Eaton's office.
Ottawa – February 28, 2012
Senator Nicole C. Eaton (Ontario) today began an Inquiry* in the Senate of Canada aimed at curtailing interference by foreign foundations in Canada’s policies.
“This Inquiry is about how billionaire foreign foundations have quietly moved into Canada and under the guise of charitable deeds are trying to define our domestic policies” explained Senator Eaton.
“Cleverly masked as a grassroots movement, these interests are audaciously treading on our domestic affairs and on Canadian sovereignty, all under the radar.”
After many months of research, Senator Eaton is convinced that there is more to these activities than concern about the environment.
“Is it coincidence that they are so fixated on the very sectors that strengthen the Canadian economy?” demands Eaton.
If we follow the money trail of financial contributions to Canadian charities and NGOs we will understand why foreign foundations are spending so much money in Canada. Could it be about something much bigger, much more profitable than the environment?” questioned Senator Eaton.
The Inquiry will expose the growing number of groups that are blatantly taking advantage of our income tax laws to attack Canadians’ confidence and hurt the Canadian economy. It is about how these groups will go to great lengths to undermine the credibility of the Canadian brand and our Canadian identity.
Contact: Krystyna Rudko, Policy Advisor to Senator Eaton, 613.947.4047
Notes:
Senator Nicole C. Eaton was appointed to the Senate on January 26, 2009 for Ontario.
A Senate Inquiry calls the attention of the Senate to a particular matter for the purpose of informing the Senate of that matter or having it considered or examined by the Senate.
Senator Eaton, I congratulate both Ms. Vivian Krause and you for the work you are doing in uncovering the money trail of these foreign foundations and disseminating that information to the public.
I wonder ... would it be appropriate for the government to cut back on the tax benefits associated with charitable donations? I don't know whether all foreign foundations receive some tax benefits either in their own country or in ours, but I believe our own registered charities are tax exempt:
http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/csp/csp-t01-eng.html
"Registered charities are exempt from paying income tax under Part I of the Income Tax Act. Registered charities may, however, be subject to taxes or penalties under the Act and they may also be subject to other federal and provincial taxes."
I don't know what taxes or penalties those charities would be subject to because, quite frankly, the CRA website is not very user-friendly. As a matter of fact, it's downright hostile, one link leading to a myriad links.
It appears the US also allows for tax exempt status:
http://en.wikipedia.org/wiki/Charitable_organization#Federal_tax_relief
"Federal tax law provides tax benefits to non profit organizations recognized as exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code (IRC)."
Posted by: Gabby in QC | 03/04/2012 at 11:54 AM