	The B'nai Brith Canada Institute for International Affairs has a mandate to protest the abuse of human rights throughout the world and advocate on behalf of worldwide Jewish communities in distress. The Institute has a special focus on pro-Israel advocacy and education.
Rochelle Wilner President	Frank Dimant Chief Executive Officer	Amos Sochaczevski National Chair	Ruth Klein National Director

COMBATTING TERROR

Submission to the Justice Committee
on Bill C-36 ~ Anti-Terrorism Act

6. Financing Terrorist Activity

i. Adding Non-profit Organizations

This Bill deals only with registered charities. The main concern with charities in the context of the anti-terrorism legislation is that registration of a charity can lead, in effect, to government subsidization of terrorist activity as a result of the charitable tax credit or deduction. However, there is a gap in this legislation in terms of non-profit organizations within the meaning of paragraph 149(1)(l) of the Tax Act. Non-profit organizations are not registered charities, but they are also not subject to income tax. Since these organizations do not issue charitable receipts, they are not subject to the same level of scrutiny as registered charities. The legislation should contain special provisions to deal with such entities.

ii. Disclosure of Confidential Information

Another problem arises with the section of the legislation which recognizes that disclosure of certain confidential information to registered charities or applicants for charitable status could injure national security or endanger the safety of certain persons [Section 113, subsection 2(2)]. When officials have discussed similar legislation, they have referred to the risk of injury to Canadians. The provisions seeking to protect the safety of persons (presumably informants) should extend to persons outside of Canada. In other words, if a person outside Canada provides information which, if disclosed to the charity or applicant for charitable status could endanger the safety of the non-Canadian informant, the legislation should protect such a non-resident. For greater certainty, section 2(2)(a) and (b) of the proposed Charities Registration (Security Information) Act should replace the phrase “safety of persons” with the phrase “safety of persons, whether Canadian or not”.

iii. Penalization of a Registered Charity — review process

The legislation provides for the penalization of a registered charity or applicant for charitable status if it supports terrorist activity. A registered charity or applicant would have a certificate issued against it and it would be deregistered or refused registration as the case may be. However, if there has been a “material change in circumstances” (subsection 10(1)) the applicant for charitable status or former registered charity can apply to have the certificate reviewed and the certificate may be cancelled. We are of the view that, if a charity is deregistered or denied registration, there would have to be a significant and relevant material change to warrant a review.

iv. Directing Minds

There are no significant penalties under the Charity Act. Essentially, the only penalty is deregistration or refusal to register. (We note, however, that under Part V of the Tax Act, a deregistered charity essentially faces a tax liability equal to the fair market value of all of its assets). The legislation does not provide for any penalties against the directing mind of the charity. Yet, in the event that a charity has supported a terrorist organization or has supported terrorist activity, it has done so as a result of the actions of the directing mind(s) of the charity. If a certificate is issued under the Charity Act, there should be some type of penalty against the directing mind that caused the charity to engage in the proscribed activity in the first place. One way of dealing with this is a deeming rule or a rebuttable presumption that, where a certificate has been issued against a registered charity or applicant for charitable status, the officers and directors of the charity have themselves committed the offence of financing terrorism under section 83.02 of the anti-terrorism legislation.

Table of Contents § Preface § Sunset Clause § Non-discrimination Clause § Retrospectivity Clause § Additional Hate Crime Provisions
Definition of Terrorist Activity § Financing Terrorist Activity § Amendments to Other Acts § Summary of Recommendations

COMBATTING TERROR

Submission to the Justice Committeeon Bill C-36 ~ Anti-Terrorism Act

6. Financing Terrorist Activity

Submission to the Justice Committee
on Bill C-36 ~ Anti-Terrorism Act