http://www.thestar.c=m/news/article/1100956–tamil-foundation-loses-charity-status

December 12, 2011

Michael Woods

The federal government revoked a Toronto-area Tamil foundation��=99s charitable status over the weekend, saying it provided financial suppo=t for groups that are part of the support network for the Tamil Tigers.

According to a Canada Revenue Agency audit, the Canadian Foundation fo= Tamil Refugee Rehabilitation (CAFTARR) provided more than $700,000 to org=nizations outside Canada that were “non-qualified donees.”=/DIV>

The CRA served notice of the revocation, effective Dec. 10, last month= It first warned of potential revocation in November 2009, after conductin= an audit of the foundation’s activity from June 2004 to May 2008.=/DIV>

The foundation provided $620,000 in tsunami relief money to the Tamil =ehabilitation Organization (TRO) in May 2005 and January 2006, and $113,93= to the Ramakrishna Mission of Sri Lanka from February 2005 to June 2007, =ccording to the audit. The donations made up 81 per cent of the foundation=E2��s total revenue during the period reviewed.

In a letter to the foundation’s lawyer, the CRA said it believ=s “on the basis of publicly available information” that bo=h the TRO and the Mission are part of the Tamil Tigers’ support ne=work.

Officially known as the Liberation Tigers of Tamil Eelam, the militant=organization operated from 1976 until 2009 when it was defeated by the Sri=Lankan military. The Harper government listed it as a terrorist organizati=n in 2006.

In its response to the CRA, the foundation said it “has no tie= to any terrorist or political group” and the TRO was a registered=voluntary social services organization in Sri Lanka whose activities recei=ed recognition from the Canadian, U.S. and Sri Lankan governments. It also=said it had an agreement with the Mission since 1988 to fund a children�=80�s welfare program in Sri Lanka.

The CRA also says the organization failed to maintain adequate books a=d records and improperly issued tax receipts on behalf of a third party. T=e revocation means the group is no longer exempt from income tax and can n= longer issue donation tax receipts.

CAFTARR was founded in 1985 and has a mailing address in Mississauga. =ts president, Arunasalam Arasaratnam, declined to comment.

The foundation’s lawyer Hari S. Nesathurai said he couldn�=80�t discuss the case specifically without his client’s permissi=n, but in his general experience the CRA charities directorate has been =E2��unreasonable” and “very dogmatic.”

Canada has one of the largest Sri Lankan Tamil populations outside Sri=Lanka, with most living in the GTA

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