Fraser Institute boss says he wouldn’t fear a CRA political activity audit

'Why isn't the right-leaning Fraser Institute being audited by the Canada Revenue Agency?'

That's one of the rallying cries from individuals and organizations that contend that the CRA's current audit of charities is politically motivated.

Last week, the Canadian Press published a list of some of the 52 tax-exempt social groups that are currently being audited to ensure that they aren't breaking any rules.

In Canada, organizations registered as charities cannot devote more than 10 per cent of their resources on political activities and cannot be partisan by endorsing particular parties or candidates.

See here for CRA's definition of political activity:

This list of charities being audited includes several environmental and left-leaning groups leaving some to suggest that the Harper government is targeting those who speak-out against them.

"We have seen this now with Greenpeace, Canada Without Poverty, Canadian Centre for Policy Alternatives, Environmental Defence, and the David Suzuki Foundation, just to name a few!" James Clancy, President of the National Union of General and Public Employees, wrote in a statement released on Thursday.

"The message to civil society organizations and research groups is clear. Speak out against the Harper government and we will target you with an audit.This government should stop using Canada Revenue Agency audits for partisan politics."

Clancy goes on to say — what a lot of people on social media at least — seem to be saying; he suggests that there's a double standard.

"Neither the right wing Fraser Institute (which has a $8.5 million budget for charitable programs) nor the Macdonald-Laurier institute has been audited," he's quoted as saying.

[ Related: Canada Revenue Agency says 'preventing poverty' not allowed as goal for charity ]

CRA denies that they've been given any political direction from the Harper government. They're not allowed to.

And for the part their part, the Fraser Institute — who often espouse small 'c' conservative ideas in their public reports — say that audits happen.

"Certainly there are certain groups — environmental and a few union based groups — that have come out quite strongly to say that this is a political agenda," Niels Veldhuis, President of the think tank, told Yahoo Canada News on Friday.

"My view is...audits are normal part of being a charity. We have been audited three times in the past. I wouldn't comment whether or not we have gone through one recently or are going through one (now)."

Critics of the Fraser Institute — whose past donors have reportedly included the U.S.-based Koch brothers — suggest they are political.

"Essentially 100 per cent of the Fraser Institute's activities are 100-per-cent political," the left-leaning Rabble.ca's David Climenhaga wrote in 2012.

"As such, the far-right, market fundamentalist 'think tank' plays a key role in what author Donald Gutstein terms the 'corporate propaganda system' that purports to churn out unbiased research but in fact works tirelessly to hijack our democracy for the benefit of Big Business and the ultra-wealthy families that control it."

But Veldhuis says that his organization doesn't get involved in political activity and that their record proves it.

"This is our 40th anniversary. We've gone through three CRA audits. We've come out well after all of those audits," he said, adding that they've also been audited by the IRS in the United States.

"We personally...have nothing to fear from a CRA audit because we have a 40-year history of doing the exact same thing."

( Photo courtesy The Canadian Press)

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