OTTAWA — The Canada Revenue Agency has revoked the charitable status of two Toronto-area health charities, which it says were scamming the tax collectors.
The agency says Liberty Wellness Initiative and Destiny Health and Wellness Foundation issued receipts far exceeding the actual donations and contravened other key elements of the tax law.
It says Liberty Wellness issued nearly $89 million in receipts for health-care units received through the Universal Donation Program between 2004 and 2006, five times the value of actual donations.
The agency says Destiny Health and Wellness Foundation issued $42 million in receipts for cash received through the Universal Donation Program and Destiny Gifting Program between 2005 and 2006.
It says most of the Destiny funds were transferred to another registered charity as compensation for its role in the arrangement, to the tax-shelter promoters as fundraising fees and to a related investment company.
It says Destiny itself retained $840,000 of the total tax-receipted amount for its own use.
“Our audit has also revealed insufficient separation between the organization’s operations and the personal business and financial interests of those responsible for its operation,” it said in separate statements relating to each of the charities.