Left-leaning think tank says right-leaning ones getting a pass on taxman scrutiny

Broadbent Institute Executive Director Rick Smith
This picture of Broadbent Institute Executive Director Rick Smith was taken by Joshua Berson on June 9, 2014 in Vancouver. This photo was published by the Broadbent Institute at its Flickr feed which you can find here: https://www.flickr.com/photos/broadbentinst/

A left-leaning think tank says right-leaning think tanks have not been subjected to the same scrutiny of their political activities as have opponents of the Harper government. 

The Broadbent Institute, an Ottawa-based group named in honour of former NDP leader Ed Broadbent, said in a study released Tuesday that its findings support the contention made by some that the Canada Revenue Agency is singling out charities whose work is at odds with the federal Conservatives while those that support the government’s agenda are not.

“We know charities that have been critical of policies of the Harper government are being audited by the Canada Revenue Agency. With mounting evidence suggesting bias in auditing decisions, we need to find out what’s going on here,” Broadbent Institute Executive Director Rick Smith (above) said in a statement.

Kerry-Lyne Findlay, the minister responsible for the CRA, told the House of Commons Monday there is no conspiracy to target one group of charities and not others.

“It is well-known that CRA audits occur free of any political interference and motivation,” Findlay said. “The CRA has a legal responsibility to ensure that charitable dollars donated by charitable Canadians are used for charitable purposes.”

Charities are allowed to spend up to 10 per cent of their resources on political activity, lobbying for changes to particular laws or policies.

The Broadbent Institute says 52 charities are currently being audited by the CRA to ensure that spending on political activity falls below that 10 per cent threshold.

Findlay said that in 2012, about 86,000 different charities issued receipts that helped Canadians reduce their tax bill on $14 billion worth of income.

The Broadbent Institute reviewed the tax filings of 10 right-leaning charities such as the Fraser Institute, the Montreal Economic Institute, and Focus on the Family and found that, in each of the last three tax years, none of them declared spending anything on political activity. Some of those charities have declined to say if they are being audited but some on the list say they have not been.

Meanwhile, groups that have been sharply critical of the Harper Conservatives like the David Suzuki Foundation and Environmental Defence have declared spending hundreds of thousands on political activity and both those groups have been audited by the CRA.

The Broadbent Institute wants an independent inquiry to look at how the CRA decides which charity it audits for political activity. It says an inquiry can determine whether or not political pressure is being brought to bear on the CRA.

“Political activity is a critical part of many charities’ work,” Smith said. “Progressive or conservative, blunting the ability of civil society to advocate and to engage in debate and, occasionally, dissent should concern us all.”

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