CRA loses court challenge to its political-activity audits of charities

Photo: Leilani Farha, executive director of Canada Without Poverty, which won a key Charter challenge in court this week regarding how much political activity a charity can engage in. A judge ruled the constitutional guarantee of freedom of expression means there can be no limits. (Idil Mussa/CBC News)

An Ontario judge has pulled the rug out from the Canada Revenue Agency's political-activity audits of Canadian charities, ruling the Income Tax Act infringes on the constitutional right to free expression.

Monday's ruling immediately quashes a longstanding rule limiting to 10 per cent the resources any Canadian charity is permitted to devote to political activities.

The decision by Justice Edward Morgan of the Ontario Superior Court of Justice is a reprieve for the tiny Ottawa group that launched the challenge — Canada Without Poverty — which has been under formal notice of losing its charitable status since 2016.

Read the full article HERE 

Source: Canadian Broadcasting Corporation (CBC)

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