By Terrance S. Carter and Lynne M. Westerhof

The Executive Director of the National Security and Intelligence Review Agency (“NSIRA”), John Davies, sent a letter to the CRA Commissioner, Bob Hamilton, dated as of March 8, 2023, notifying the Commissioner that NSIRA would be commencing a review of the CRA’s Review and Analysis Division (“RAD”), with a particular focus on “the RAD program’s national security activities and decision-making relating to registered Canadian charities, to assess their reasonableness, necessity, and compliance with the law.”

This letter comes after the International Civil Liberties Monitoring Group recommended that NSIRA carry out regular reviews of CRA’s anti-terrorism activities – including the Charities Directorate and RAD – and after it was recommended to the Standing Senate Committee on Human Rights that NSIRA be asked to review the mandate, training and procedures of RAD within the CRA.

In response to NSIRA’s announcement, the CRA Commissioner stated that the CRA “welcomes this upcoming review and will fully cooperate with NSIRA.” On March 14, 2023, the Minister of National Revenue, the Honourable Diane Lebouthillier, stated that “The Government of Canada stands with and supports Muslim communities across Canada” and “welcome[s] the review launched by the National Security and Intelligence Review Agency (NSIRA) and view it as an important next step that will complement the forthcoming publication of the Taxpayers’ Ombudsperson’s review.”

The Taxpayers’ Ombudsperson’s report was released on March 27, 2023, less than two weeks after the Minister of National Revenue’s statement, and – as explained in the article above – was unable to provide a review of the CRA’s audit selection process due to insufficient information provided by the CRA. Therefore, it is hoped that NSIRA’s review will go beyond what the Taxpayers’ Ombudsperson was able to uncover and will be able to provide Canadians with answers with regards to how the CRA conducts charity audits, particularly in relation to Muslim charities. 

​Read the March 2023 Charity & NFP Law Update