ISAC

Canada Revenue Agence du revenu
Agency du Canada
FEB 1 1 2016
REGISTERED MAIL
Islamic Shia Assembly of Canada
56 Ventura Lane
Ajax On LIT 0C3
BN:140610262RR0001
Attention: Mr. Sephere Mojtahedy File #:0983205
Subject: Notice of Intention to Revoke

Dear Mr. Mojtahedy:
I am writing further to the audit of the books and records of the Islamic Shia Assembly of
Canada (the Organization), formerly Islamic Ahlul Bayt Assembly of Canada, for the
audit period January 1, 2008 to December 31, 2010 and our letter dated April 15, 2013
(copy enclosed), in which you were invited to submit representations as to why the
registration of the Organization should not be revoked in accordance with subsection
168(1) of the Income Tax Act (Act).
We have now reviewed and considered your written responses dated

August 29, 2013 and September 10, 2013. However, notwithstanding your reply, our
concerns with respect to the Organization's non-compliance with the requirements of
the Act for registration as a charity have not been alleviated. Our position is fully
described in Appendices "A" through "C" attached.
Conclusion
The audit by the Canada Revenue Agency (CRA) has revealed that the Organization is
not complying with the requirements set out in the Act. In particular, it was found that
the Organization has ceased to comply with the requirements of the Act for its continued
registration; failed to comply with or contravened sections 230 to 231.5 of the Act;
issued a receipt for a gift or donation otherwise than in accordance with the Act and the
Regulations or that contains false information; and failed to file an information return as
required under the Act. For all of these reasons, and for each reason alone, it is the
position of the CRA that the Organization no longer meets the requirements necessary
for charitable registration and should be revoked in the manner described in subsection
168(1) of the Act.
Canada R350 E (08)

-2-
Our analysis of the information obtained during the course of the audit has led the CRA
to believe that the Organization is furthering unstated collateral purposes of acting as a
facilitator organization to support the operational goals of the social-political
organization, Iranian Ahlul Bayt (a.s.) World Assembly (ABWA), in Canada.
Consequently, for each of the reasons mentioned in our letter dated April 15, 2013,
we wish to advise you that, pursuant to subsection 168(1) of the Act, we propose to
revoke the registration of the Organization. By virtue of subsection 168(2) of the Act,
revocation will be effective on the date of publication of the following notice in the
Canada Gazette:
Notice is hereby given, pursuant to paragraphs 168(1)(b),168(1)(c),

168(1)(d), and 168(1)(e) of the Income Tax Act, that I propose to revoke
the registration of the organization listed below and that the revocation of
registration is effective on the date of publication of this notice.
Business number Name

140610262RR0001 Islamic Shia Assembly of Canada
Should you wish to object to this notice of intention to revoke the Organization's
registration in accordance with subsection 168(4) of the Act, a written notice of
objection, which includes the reasons for objection and all relevant facts, must be filed
within 90 days from the date of this letter. The notice of objection should be sent to:
Tax and Charities Appeals Directorate

Appeals Branch
Canada Revenue Agency
250 Albert Street
Ottawa ON K1A OL5
Notwithstanding the filing of an objection, a copy of the revocation notice, described

above, will be published in the Canada Gazette after the expiration of 30 days from the
date this letter was mailed. The Organization's registration will be revoked on the date
of publication.
A copy of the relevant provisions of the Act concerning revocation of registration,

including appeals from a notice of intent to revoke registration can be found in
Appendix "B", attached.
Consequences of revocation
As of the effective date of revocation:

a) the Organization will no longer be exempt from Part I tax as a registered
charity and will no longer be permitted to issue official donation
receipts. This means that gifts made to the Organization would not be
-3-
allowable as tax credits to individual donors or as allowable deductions to

corporate donors under subsection 118.1(3), or paragraph 110.1(1)(a), of
the Act, respectively;
b) by virtue of section 188 of the Act, the Organization will be required to pay a
tax within one year from the date of the notice of intention to revoke. This
revocation tax is calculated on prescribed Form T2046, Tax Return Where
Registration of a Charity is Revoked (the Return). The Return must be filed,
and the tax paid, on or before the day that is one year from the date of the
notice of intention to revoke. The relevant provisions of the Act concerning the
tax applicable to revoked charities can also be found in Appendix "B". Form
T2046 and the related Guide RC4424, Completing the Tax Return Where
Registration of a Charity is Revoked, are available on our Web site at
www.cra-arc.gc.ca/charities;
c) the Organization will no longer qualify as a charity for purposes of

subsection 123(1) of the Excise Tax Act. As a result, the Organization may
be subject to obligations and entitlements under the Excise Tax Act that
apply to organizations other than charities. If you have any questions about
your Goods and Services Tax/Harmonized Sales Tax (GST/HST) obligations
and entitlements, please call GST/HST Rulings at 1-888-830-7747 (Quebec)
or 1-800-959-8287 (rest of Canada).
Finally, I wish to advise that subsection 150(1) of the Act requires that every corporation
(other than a corporation that was a registered charity throughout the year) file a return
of income with the Minister in the prescribed form, containing prescribed information, for
each taxation year. The return of income must be filed without notice or demand.
Yours sincerely,
tu7,
Cathy Hawara
Director General
Charities Directorate
Attachments:
-Appendix "A" — CRA position on representations
-Appendix "B" — Relevant provisions of the Act
-Appendix "C"
o CRA letters dated April 15, 2013 and July 21, 2008
o Organization's Representations dated August 30, 2013
Notice of Intention to Revoke

Appendix "A"
Contents:
• CRA position on representations

COMMENTS ON REPRESENTATIONS OF AUGUST 30, 2013
We have reviewed the Organization's representations dated August 30, 2013 (attached at
Appendix C), and it remains our position that the non-compliance issues identified during the
audit represent a serious breach of the requirements of the Income Tax Act (Act) and that, as
a result of this non-compliance, the Organization's registration should be revoked.
These reasons are described in greater detail in this Appendix, which addresses the
Organization's representations regarding the non-compliance issues identified in the
Canada Revenue Agency's (CRA) Administrative Fairness Letter (AFL), sent to the
Organization on April 15, 2013 (attached at Appendix C).
Below please find:
• A summary of the issues raised by the CRA in our AFL dated April 15, 2013;
• A summary of the Organization's representations dated August 30, 2013; and
• The CRA's conclusions.
1. Ceased to comply with the requirements of the Act for its continued
registration
1.1 Failure to demonstrate that it is constituted for exclusively charitable purposes
While the Organization appeared charitable upon registration, the CRA cautioned the
Organization, in its Notification of Registration, that its operations would be restricted to the
advancement of purposes (a), (d), and (h), as set out in its August 1993 Constitution. In
March 2007, the Organization advised the CRA that it had amended its Constitution; these
amendments included a change of name, and a change in its stated purposes. In response,
the CRA advised the Organization that "the adoption of the amended purposes raised a
concern as to its continued eligibility for registration".1 The Organization replied that it had not
implemented or taken any action with respect to its 2007 Constitution. 2 Consequently, at that
time, the CRA did not further pursue the issue.3
In March 2011, without prior approval from the CRA, the Organization formally incorporated
under the provisions of the then-Canada Corporations Act, using its original 1993 purposes in
their entirety, despite the prior mutual understanding that it operate only in furtherance of
purposes (a), (d), and (h). As explained in our AFL, the Organization's purposes (b), (i) and (j)
are broadly worded, and extend beyond what is generally understood by the courts as the
advancement of religion. These purposes place no restrictions on the programs that the
CRA letter dated July 21, 2008.

Organization's response dated October 18, 2008.
' On September 20, 2011, the CRA advised the Organization that it had been selected for a field audit, which would include
a follow-up to our July 21, 2008 letter and the Organization's response of October 18, 2008.
A/1
Organization might conduct, leaving open the possibility that the Organization could
undertake activities that may not be exclusively charitable.
Purpose (c) is broad and vague and non-charitable. In this regard, the courts have not
considered purposes that promote brotherhood, mutual aid, and fraternal ties between
individuals and/or groups that share a common connection to be analogous to the
advancement of religion in the legal sense; nor have such purposes been considered to fall
under the fourth category of charity.
Therefore, the Organization is not established for purposes that are exclusively charitable,
and for this reason alone, is not in compliance with the requirements of the Act for its
continued registration.
Organization's Representations
The Organization agreed that its charitable registration was granted on the understanding that
its operations were to be restricted to activities in furtherance of purposes (a) and (d), and (h)
of its 1993 Constitution. The Organization acknowledged that the purposes set out in its 2011
Letters Patent are identical to the purposes set out in the original 1993 Constitution ((a) to (j)
inclusively).
The Organization submits that despite a lengthy period of correspondence, the CRA failed to
comment on its purposes and then later took the position that its purposes were not
charitable. In this regard, the Organization refers to the courts comments in
Alliance for Life v. Canada (Minister of National Revenue)4 that "the respondent's approval of
the appellant's amended purposes prior to their formal adoption cannot be readily ignored".
The Organization also acknowledged that its activities are "somewhat different from when it
was initially registered..."
CRA's Conclusion
The various aspects that an audit may examine include whether a registered charity
advances purposes which are, in fact, charitable at law. Maintaining charitable registration
demands that a charity continue to meet the existing statutory and common law requirements
associated with registered status. Accordingly, although a charity's formal purposes may have
been accepted at the time of its registration, it is possible they may be determined to no
longer qualify as charitable at law in the course of a subsequent audit.
We have considered your comments pertaining to the decision in Alliance for Life v. Canada
(Minister of National Revenue).5 While the court indicated that the Minister's approval of the
organization's amended purposes could not be ignored, it also could not overlook the fact that
"Revenue Canada never changed its position on the true nature of the appellant's amended
purposes nor failed to criticize them". In this regard, we note that the CRA never changed its
opinion with respect to the Organization's purposes as demonstrated by the following.
4 Alliance for Life v. Canada (Minister of National Revenue)11999] F. C. 504.

5
The primary issue in the Alliance for Life v. Canada (Minister of National Revenue) case was whether the CRA's decision to
revoke the organization's registration as a charitable organization was well founded in law and, as such, the Minister's
decision to revoke was maintained.
A/2
• On March 15, 1994, the CRA notified the Organization of its charitable
registration; the registration was predicated on it carrying out purposes (a) and
(d), and particularly (h), of its Constitution. At that time, the Charities Directorate
also advised the Organization that "if your sources of support, or your purposes,
character, or method of operation change, please advise us immediately so that
we may consider its effects on your registration."
• Despite the CRA's registration restriction and caution regarding any change in
direction or programs, on March 3, 2007, the Organization advised the CRA that
it had amended its Constitution, including a change in name and purposes.
• In response, the CRA's letter of July 21, 2008, made it very clear that the
adoption of these amended purposes "raises a concern as to its continued
eligibility for registration as a charitable organization under the Income Tax Act."
At that time, we informed the Organization that the purposes outlined in its
amended Constitution included purposes that were broad and vague, and
appeared to extend beyond what is generally understood by the courts as the
advancement of religion. We further advised that "organizations that are
registered charities under the Act must continue to demonstrate that they... have
been established for, and continue to operate in support of, purposes that are
exclusively charitable under common law."
• The Organization's letter of October 18, 2008, acknowledged our concerns with
the purposes contained in its December 31, 2006 Constitution. However, with
regards to purposes (b) and (i), the Organization dismissed these concerns by
stating that these purposes were "...in the old constitution".
• On March 2, 2011, despite the CRA's on-going concerns with the Organization's
purposes, the Organization formally incorporated under the provisions of the
then-Canada Corporations Act, using its original purposes, in their entirety.
We maintain our position that the Organization's purposes (b), (i) and (j) are non-charitable in
that they are broadly worded and place no restrictions on the programs that the Organization
might pursue in furtherance of these purposes. As demonstrated in Section 1.2 below, the
broad and vague nature of the Organization's purposes have allowed it to operate in a
manner that is not exclusively charitable.
Similarly, we maintain that purpose (c) is broad and vague and non-charitable. The aim
expressed in this purpose is problematic in itself, as the courts have stated that a purpose to
promote a closer and more sympathetic understanding between groups is not analogous to
any which have been held charitable at law.6
With regards to the Organization's assertion that the CRA failed to comment on its purposes
in our July 2008 letter, we advise that this letter was meant to address the Organization's
amended constitution. At that time, the CRA did not anticipate, nor did the Organization
indicate, that it intended to formerly incorporate using its original purposes. Moreover,
considering the original restriction to operate solely for the advancement of purposes (a), (d)
and (h), it should have been clear to the Organization that the CRA had and continued to
have concerns with some of its purposes.
6 See Anglo-Swedish Society v. C.L.R. (1931) T.C. 34 (K.B.D.) as cited in Toronto Volgograd Committee v. M.N.R., 88 DTC
6192 (F.C.A.).
Ar3
It is our position that by pursuing non-charitable purposes, the Organization has failed to
demonstrate that it meets the test for continued registration under 149.1(1) of the Act as a
charitable organization that operated "exclusively for charitable purposes". This constitutes
sufficient reason to revoke the Organization's status as a registered charity under paragraph
168(1)(b) of the Act.
1.2 Failure to meet the definition of a charitable organization under the Act/Failure to
demonstrate that it carries out its own charitable activities
Upon registration, the Organization informed the CRA that it would organize Islamic
conferences, publish a religious magazine, and translate and publish books on Islam.
However, our audit findings indicate that the Organization has only organized two
conferences since obtaining registration in 1994, last published the Right Path magazine in
1996, and there is no indication that it has engaged in translation services.
As demonstrated in the CRA's audit findings, the Organization has focused very little of its
resources on undertaking activities in furtherance of its stated purposes. Rather, our audit
findings revealed that a significant portion of the activities undertaken by the Organization, for
the period under review, were directed towards activities that are not charitable as that term is
understood under Canadian law.' The audit findings in this regard are outlined below under
the following headings:
A. Eidul-Fitr
B. Festival of Lights
C. 2008 Conference
D. Education expense/scholarship
E. Holding property
F. Internal governance
G. Advancement of unstated non-charitable collateral purposes
A. Eidul-Fitr
The Eidul-Fitr celebration dinner was the Organization's primary activity for the entire period
under review; however, this event did not appear to advance religion in the charitable sense.
In addition, the CRA was unable to associate this activity to a charitable purpose, and further
found that the resources devoted to this activity were in excess of what could be considered
an incidental expense.
B. Festival of Lights Activity

The Organization's funding of the light display failed to demonstrate that its resources were
devoted to a charitable activity or an activity that it carried out in furtherance of a charitable
purpose. The CRA was not provided with any documentation or information that
demonstrated how this activity furthered the Organization's formal purposes, or how the light
display advanced religion in the charitable sense. In addition, the audit revealed that this was
not the Organization's "own activity". Rather, it appeared that the Organization jointly funded
the light display without demonstrating any direction or control over the activity.
7 The Organization's Eid prayer, Imam Mandi, and Imam Hussein Day events were found to be charitable.
A/4
C. 2008 Conference
The CRA was not provided with sufficient documentation during the audit to determine
whether or not the conference could be considered charitable in nature.
The audit also uncovered concerns regarding the matchmaking workshop where
discussions appeared to be encouraging the marriage of individuals who fall below the
age requirements as set out in the Marriage Act (Ontario), which is contrary to Canadian
law and would therefore fail to meet the public benefit test.
D. Education Expense/Scholarship
The CRA was not provided with sufficient documentation or information to determine whether
this activity met the public benefit test or that it could be considered charitable as that term is
understood under Canadian law. Further, there is no evidence that the Organization
maintained direction and control over the use of the funds it provided to the
.
E. Holding Property
The audit findings revealed that, during the period under review, 43 to 52 percent of the
Organization's total expenses, as reported on the Organization's financial statements, were
directly related to the maintenance, management and financing of property. The Organization
represented during the audit that its properties were used as a place for planning and
organizing programs; meetings for directors, volunteers and others; and office space. The
audit found no evidence to demonstrate that the Organization carried on any of its
events/programs at the properties in question,8 nor was the Organization able to provide
sufficient documentation to support the need to manage an office for administrative
purposes,9 which raised questions with respect to the intent for which property was acquired.
A review of the use of the four properties that the Organization has reported on its T3010s
and in its financial statements since registration was conducted.1° The audit observations
8 As per audit documentation and the Organization's responses to questions (in quotation):
• Eid Dinner: took place each year at Woodbine Banquet and Convention Hall. This is a "... long standing event and
planning is minimal because the event is run the same each year. The Organization sends out invitations by email and
the venue is always the same.";
■ Eid Prayer: took place at a different centre each year. This "does not need to plan for this event since it happens each
year...last year... it was held at the Afghani Centre";
■ Conferences/lectures: a conference took place at the Jaffari Islamic Centre, "... they administered the May 2008
Conference with other organizations";
■ Hussein Day: no supporting documentation was provided to suggest that this event took place at the Organization's
premises;
■ Imam Mandi Day: no supporting documentation was provided to suggest that this event took place at the Organization's
premises, "...no planning goes into this event... it administers the activities of Imam Mandi Day with other organizations";
■ Light Display: activity of held at the Festival of Lights City of Niagara Falls, "... the Niagara Falls City Council
administered this event".
9 In this regard,
• the Organization was not able to provide any documentation to support planning activities at its premises;
• the Board of Directors' meeting minutes do not reflect any reporting of subcommittees to the Board of Directors with
respect to the planning of events;
■ the Organization provided three meeting minutes for the three year audit period for the Board of Directors meetings;
• documentation in support of meetings was negligible both in quantity and quality, signed by only one director, and do not
support the expenses associated with these properties as a meeting place; and
■ the Organization was unable to provide any meeting minutes for the Board of Trustees, or ad hoc meetings that could
explain the need to maintain an office for administrative purposes.
10
Audit included a review of the Organization's operations with respect to following properties:
A/5
indicated that the Organization granted control of these properties to a third party. In this
regard:
• The Organization does not appear to have a need to hold property in order to
conduct its activities or to maintain an office space for management and
administrative functions.11
• The financing for the last two properties reported by the Organization were
maintained outside its books and records and managed through the private
bank account of one of its directors.
• The Warden Avenue property appeared to be used for the benefit of a
Mr. Mohammad Sadegh Muaddel Ebrahimi, the Organization's former trustee,
with no apparent link to a charitable purpose or activity.
• Audit was unable to confirm the source of funding to purchase properties.
• The resources devoted to property appear to be segregated and re-invested
into property.
• The Organization appears to be complacent with respect to deficits and
surpluses resulting from property holdings, and which do not appear to impact
the Organization's affairs.
• The Organization was unable to provide any meeting minutes for the Board of
Trustees, or ad hoc meetings that could explain: why a property was
purchased; why a property was sold; how it would meet the needs of the
Organization; why it did not meet the needs of the Organization; or the
advantages of having a property to advance a charitable purpose or activity.
• The Organization's Board of Trustees is responsible for managing the property
holdings; however, they do not record meeting minutes or report back to the
Board of Directors.
• Loan agreements with financial institutions to obtain financing are vested with
Mr. Hosseini-Nassab, instead of the Organization for the Leslie Street and
16th Avenue properties.
• The Land Registry Office did not identify the Organization as the beneficial
owner for the 1166 Warden Avenue, the 12056 Leslie Street, or the 16th Avenue
properties.
We also identified other problems regarding the Organization's handling of property

purchases that may offend public policy.12 For example:
• The Organization appears to have disregarded its obligation to adhere to the

Religious Organizations' Lands Act (ROLA)13 when it acquired the 16th Avenue
and 12056 Leslie Street properties. 14
■ 60 Green Lane, Thornhill, ON, L3T 7P5, 1994 — 2000;

■ 1166 Warden Avenue, Toronto, ON, M1R 2R1, 2000 — 2003;
■ 319 16th Avenue, Richmond Hill, ON, L4B 3N1, 2004 — 2007;
• 12056 Leslie Street, Richmond Hill, ON, L4E 3R5, 2007 — 2010.
11 See footnote 8 and 9.
12 See CRA's Policy Statement CSP-P13, Public Policy: The courts have held that an organization is not charitable in law if
its activities are contrary to public policy. An activity cannot be held to be contrary to public policy unless there is a definite
and officially declared and implemented policy (i.e., found in an Act of Parliament, a regulation or other publicly available
government document of any kind). Also see Canadian Magen David Adorn for Israel v. Canada (Minister of National
Revenue) (2002 FCA 323), 2002-09-13.
A/6
• The Organization misrepresented the beneficial owner to: financial institutions
to obtain financing; City Officials for property tax; and Land Registry Office
regarding Trustee arrangements. Canada Mortgage and Housing Corporation
states that: "Mortgage fraud occurs when someone deliberately misrepresents
information on a loan application, to obtain mortgage financing that likely would
not have been approved if the truth had been known." 15
Our AFL also referenced our letter of July 21, 2008, where we advised the Organization of our
concerns with respect to governance and internal controls over finances and property
holdings vested with the board of Trustees.16 The audit findings corroborate these concerns.
F. Internal Governance
We advised the Organization of our concerns with respect to governance and internal controls
over finances and property holdings vested with the board of Trustees. As noted above, the
Organization did not adhere to ROLA when it acquired the 16th Avenue and
12056 Leslie Street properties.

The audit revealed that the Organization was conducting its operations under the provisions
of its December 31, 2006, Constitution. In this regard: the 2006 Constitution was signed by
two of the Organization's directors; the Organization's meeting minutes state that the 2006
Constitution was approved; the Organization's 2006 T3010 states that it made changes to its
governing documents and declared a new program to "assist member organizations"; and the
Organization advertised the purposes from its 2006 Constitution on its website where it also
described itself as an "umbrella organization".
Some of the clauses17 contained in the Organization's 2006 Constitution appears to further an
unstated collateral purpose, namely to formalize the Organization's intent to act as facilitator
organization to support the operational goals of the Iranian Ahlul Bayt (a.s.) World Assembly
(ABWA) in Canada.
Facilitator Organization
The audit findings indicate that the Organization operated to support the unstated collateral
purpose of acting as a facilitator organization for followers of Ahlul Bayt in Canada in order to
assist and coordinate its member organizations, including the establishment of, and
13 Our AFL used the term Ontario Religious Land Act; this should have read Religious Organizations' Lands Act.
14 The Trustee documentation provided in support of 16th Avenue and 12056 Leslie Street properties does not vest with the
required number of Trustees as required by the Organization's 1993 or 2006 Constitutions, and the title to the property is not
recorded to be held with the Organization as required by ROLA.
15
We note that Mr. Hosseini Nassab knowingly made false statements in order to obtain financing for both the 16th Avenue
and 12056 Leslie Street properties. (Statutory Declaration signed on June 18, 2004 for the 16th Avenue, and
September 4, 2007 Trust Agreement which provide, "...Owner and the Trustee are aware that the holders of any registered
mortgage/charge on the Property will consider this Trust Agreement as a breach of the terms of the mortgage.")
16 See our letter of July 21, 2008 section: Governance and Internal Financial Controls.
17
The Organization's December 31, 2006 Constitution contains the following objects: (3) To present the correct image of
Shi'a throughout Canada and the world; (6) To support activities and positions among Shi'a with respect to cultural,
economic, and social development in Canada; (10) To assist and coordinate among existing Shi'a centres to expand their
activities and to promote their cultural, social, and economical standing; and (11) To defend the principles of the
AHLUL BA YT and their followers around the world.
A/7
fundraising for, non-qualified donees. We advised the Organization that its purposes and
activities did not meet the requirements to qualify as an umbrella organization.18
Support the operational goals of ABWA

Our analysis of the information obtained during the audit, and our own supplementary
research, indicates that the Organization, in whole or in part, was established to support the
operational goals of ABWA in Canada. Specifically, our analysis demonstrates that:
1) The Organization supports the operational goals of ABWA.
2) ABWA's news agency identifies the Organization as an ABWA branch.
3) Mr. Hosseini-Nassab may have established the Organization to facilitate the
spread of the Iranian revolutionary ideology in Canada.
4) ABWA interferes in the affairs of the Organization.
5) The Organization's directors attend ABWA conferences.
6) The Organization invited ABWA representatives to its functions.
7) The Organization reports to ABWA.
8) The ABWA logo appears on the Organization's website.
9) The Organization receives funding from the Cultural Centre of the Republic of Iran.
It is our position that activities which support the operational goals of ABWA would lack the
charitable requirements to meet the public benefit test because of ABWA's strong political
agenda, and its direct affiliations to both the Islamic Republic of Iran19 and Hezbollah, a listed
terrorist entity in Canada.2°
The Organization's Representations

A. Eidul-Fitr
The Organization denied that its Eid dinners did not advance religion in the charitable sense.
The Organization submits that there was an opening prayer, a short lecture on different
aspects of Islam, and a closing prayer. The Organization acknowledged that there was
entertainment as Eid is meant to be a festival of merriment and interaction.

The Organization denied that its Festival of Lights activity did not advance religion in the
charitable sense. The Organization submits that the Festival of Lights propagates Islam as
many people travel to see the exhibition, which provides the Organization an opportunity to
promote its faith to multiple attendees from different faith backgrounds.
The Organization did not provide any representations as to how it directed or controlled the
resources that it devoted to this activity.
18
CPS-026 Guidelines for the Registration of Umbrella Organizations and Title Holding Organizations.
19
On September 7, 2012, pursuant to subsection 6.1(2) of the State Immunity Act (R.S.C., 1985, c S-18), the Government in
Council established a list of foreign state sponsors of terrorism, which included the Islamic Republic of Iran, as a Schedule to
the Order Establishing a List of Foreign State Sponsors of Terrorism (SOR/2012-170).
20
Hezbollah was listed as a terrorist entity in Canada effective December 10, 2002. For more information see
http://www.publicsafety.gc.ca.
A/8
C. 2008 Conference
The Organization provided the CRA with a copy of the transcript for presentation
from the 2008 conference.21 The transcript of presentation outlines the
challenges guiding the community regarding educational, social, economic and political life in
the country.
The Organization denied that its matchmaking workshop encouraged under age marriage.
The Organization did not provide any representations on the media workshop.
The Organization denied that it knowingly participated in a third party receipting scheme and
asserts that the funding provided to the was a one-time program to assist
students who could not otherwise afford the fees. The Organization provided the CRA with
the names of students who benefited from the scholarship program. The Organization did not
provide any information to demonstrate that it maintained any control or direction over the
funds it provided to a non-qualified donee.
E. Holding Property
The Organization submits that the table outlined in our AFL concerning the percentage of its
total expenses devoted to property management is not reflective of the charitable activities it
conducted. In this regard, the Organization represents that the expenses categorized as
property and mortgage interest should be considered charitable expenses since the buildings
are being used for the following charitable activities:
• Religious functions not requiring a large space are held at each property
(religious classes, weekend religious camps for youth).
• Prayers held on Thursday nights.
• A library is still maintained.
• To plan meetings.
• Preparation of articles for two magazines.
• Lectures.
The Organization submits that its properties in Richmond Hill were held in trust by
Mr. Hosseini-Nassab and his spouse so that it would be able to secure mortgages. The
Organization acknowledged that Mr. Hosseini-Nassab was making the mortgage payments.
The Organization submits that funds received from Mr. Hosseini-Nassab in 2004, in the
amount of $99,342, were from khums he collected as a Grand Ayatollah. In accordance with
Islamic laws, he contributed these collections towards the purchase of the 16th Avenue
property.
With regards to the Leslie Street property, the Organization submits that it conducted ongoing
fundraising to reimburse Mr. Hosseini-Nassab for the mortgage payments.
The Organization denied that its Warden Avenue property was held by Mr. Ebrahimi. The
Organization also denied that Mr. Ebrahimi resided at this property; asserting that he lived in
21 See Organization's Letter dated August 29, 2013.

A /9
Ajax as the building was too small to provide both accommodations to a tenant and to hold
religious functions.
The Organization acknowledged that the Green Lane property was purchased with a third
party loan, which was later forgiven.
The Organization submits that all of its properties were held on behalf of the Organization,
even if they were in the names of trustees, or if the transfer documents did not indicate that
the individuals were to be trustees.
The Organization denies that it is not in compliance with ROLA, and submits that any
non-compliance or imperfections concerning title holding are honest mistakes of law. Any
non-compliance with ROLA should not be considered by CRA to be non-compliance with the
Act.
With respect to internal governance concerns,22 specifically, items (i) and (j), the Organization
represented that these clauses are common in most constitutions and in the by-laws of
various corporations. Although the Organization does not expect any disputes, it submits it
has a mechanism in place to resolve the disputes in a speedy manner.
The Organization submits that the CRA's comments regarding the wording in Article 7,
Section 2, paragraphs 6 and 19 is erroneous; the intent behind the wording "without
obligation" was that these bequeaths will be unconditional or with such conditions that
Ahlul Bayt would not be willing to accept or fulfill.
Facilitator Organization
The Organization denies that it intended and/or operated as a facilitator group.
The Organization did not provide any representations on audit findings demonstrating that it
had been operating in furtherance of the purposes contained in its 2006 Constitution.
The Organization submits that the CRA did not indicate what resources were being used to
further an unstated or collateral purpose. In this regard, the Organization references a
dissenting judgment in the Vancouver Society of Immigrant & Visible Minority Women v.
Canada case (Vancouver Society)23 and paragraph 43 of CRA Guidance, CG-019, How to
Draft Purposes for Charitable Registration, as examples where collateral purposes are
inferred based upon a devotion of resources.
Support the operational goals of ABWA

The Organization denies that it supports the operations of ABWA, is under the control or
influence of ABWA, or that it is associated with ABWA.
22 As outlined in CRA's letter of July 2008.

23 See Vancouver Society of Immigrant & Visible Minority Women v. Canada, [1999] 1 SCR 10, at paragraph 61.
A/10
CRA's Conclusion
A. Eidul-Fitr
While we acknowledge that this activity has a religious component, the audit reasonably
concluded that the overall focus of this activity was to administer a social and entertaining
event. Moreover, the resources devoted to this social event exceeded the amount which
could be considered as an incidental expenditure.
A registered charity is permitted to undertake a limited amount of activity that is ancillary

(those that are subordinate or secondary to an organization's charitable activities) and
incidental (those that are not essential to the charity's operation and are only conducted on an
occasional basis) to the charity's charitable purposes. As such, these activities should receive
only a minor proportion of a charity's time and resources.
Given that the Eidul-Fitr dinner was the Organization's primary activity throughout the audit
period, it remains the CRA's decision that the dinner represents a non-charitable social
activity which goes beyond the amount considered by the CRA to be an ancillary and
incidental expenditure. The CRA is also unable to associate this activity to one of the
Organization's charitable purposes.

We maintain our position that the festival of lights activity does not represent a targeted
attempt to advance religion in the charitable sense.
In order to advance religion in the charitable sense, there must be a targeted attempt to
promote it, spread its message and take some positive steps to sustain and increase its
associated religious beliefs.2 As per Fuaran Foundation v. C.C.R.A., an organization would
qualify for registration under the advancement of religion only if its activities served primarily
to advance religion and were not directed to subsidiary or secondary aims not in themselves
religious or otherwise charitable.
In this regard, the light display on its own is not enough to advance religion in the charitable
sense. The audit found no documentation or representations to indicate that representatives
from the Organization attended the festival, or had the intention of interacting with the public
in order to promote the Shia faith.
While the Organization represented that the Festival of Lights was its own activity, the audit
did not find, and the Organization failed to provide, any documentation to support this
assertion. As outlined in CRA Guidance, Using an Intermediary to Carry out a Charity's
Activities in Canada, a charity can carry out its activities through the use of an intermediary,
however it must maintain a record or steps taken to control and direct the use of its resources,
as part of its books and records, to allow the CRA to verify that all of the charity's resources
have been used for its own activities.
24 Keren Kayemeth Le Jisroel v. 1RC. (1931) Vol X ATC, affirmed [1931] 2 KB 465 (C.A.), affirmed [1932] AC 650 (H.L.)
(Keren Kayemeth); United Grand Lodge v. Holborn Borough Council, [1957] 1 WLR 1080; Fuaran Foundation v. C.C.R.A.,
2004 FCA 181 (Fuaran Foundation); and Humanics Institute v Canada (National Revenue) 2014 FCA 265.
A/11
C. 2008 Conference
The activities undertaken during the Organization's 2008 conference do not advance religion
in a manner which would be recognized as charitable at law. On the contrary, the conference
appears to support the audit findings that the Organization operates as a facilitator
organization for the Shia community in Canada.
The Organization represented during the audit interview that the purpose of the conference
was to "get all the Shia organizations in one place to discuss the issues that affect Shias in
Canada". The main topics discussed in presentation relate to the challenges
facing the Shia community "beyond the religious and spiritual aspects of our lives" such as
educational, social, economic and political issues. The presentation also focused on the need
for the Shia community to have a national organization to represent the needs of the
community, other than for religious or spiritual needs. He also noted that the local
organizations have neither the human or financial resources to produce the necessary
material to fulfill these needs. The workshops carried out at the conference (Education,
Tabligh and Dawa, Youth, Matchmaking, and Economics) also appear to complement the
theme of the conference and presentation.
The audit findings indicate that the Organization has attempted to restructure itself in order to
operate as a facilitator organization to the Shia community. The Organization's 2006
purposes set out in its Constitution and, purpose (b) of its governing document, all appear to
correspond with the topics covered in the conference.25
The advancement of religion, as it is understood in the charitable sense, has been judicially
interpreted to mean promoting the spiritual teachings of a religious body, and maintaining the
doctrines on which it rests and the spiritual observances that serve to promote and manifest
it.26
As stated in CRA Summary Policy CSP-R06: "To advance religion means to promote the
spiritual teachings of a religious body and to maintain doctrines and spiritual observances on
which those teachings are based. There must be an element of theistic worship, which means
the worship of a deity or deities in the spiritual sense."
The Organization's representations and information submitted in support of the conference do

not support its claim that the conference is charitable under the advancement of religion.
25
2006 Constitution
• To support activities and positions, among Shi'a with respect to cultural, economic and social development in Canada.
• To assist and coordinate among existing Shi'a centers to expand their activities and to promote their
cultural, social and economic standing.
• To present the correct image of Shia throughout Canada and the world.
Purpose b, Letters Patent

To safeguard and further the religious, moral, social, and educational interests of the followers of the
Shia Ithna-asheri faith.
26 Keren Kayemeth Le Jisroel v. IRC, (1931) Vol X ATC, affirmed [1931] 2 KB 465 (C.A.), affirmed [1932] AC 650 (H.L.)
(Keren Kayemeth); United Grand Lodge v. Holborn Borough Council, [1957] 1 WLR 1080; Fuaran Foundation v. C.C.R.A.,
2004 FCA 181 (Fuaran Foundation); and Humanics Institute v Canada (National Revenue) 2014 FCA 265.
A/12
While the conference discussed issues relating to Shias in general, it was clear that the topics
discussed related primarily to issues "beyond religious or spiritual" needs of the community.
While the conference itself does not promote religion in the charitable sense, the analysis of
the Organization's representations and submissions supports the audit findings that the
Organization has an unstated collateral purpose to act as a facilitator organization for Shia
groups in Canada.
The CRA will accept the Organization's representations regarding views expressed on
underage marriage.
The Organization failed to provide any information on the media workshop.
The Organization failed to demonstrate that it maintained direction and control over its funding
to the . Consequently the Organization's funding to the
represents a gift to a non-qualified donee.
E. Holding Property
Our analysis of the Organization's representations pertaining to the purchase and use of its
properties has not alleviated the concerns set out in the AFL. There are three serious
non-compliance concerns in this regard:
i. the Organization's property is not used in furtherance of its purposes;
ii. third party involvement in the purchase of properties; and
iii. the Organization appears to have engaged in mortgage fraud.
i. Property Use
While we considered the Organization's representations regarding activities undertaken at its
properties (all of which were residential), the audit findings do not support these assertions. In
this regard, the Organization submits that its properties were used for smaller religious
functions (religious classes, weekend religion camp for youth), and prayers held on Thursday
nights. However, during the audit interview, the Organization failed to mention these activities,
the audit found no documentation to support this assertion, and the Organization failed to
provide any documentation to support that it conducted these activities during the period
under review.
Audit findings indicate that the Organization's resources were primarily directed to the
financing and maintenance of property. The Organization represented to the CRA during the
audit interview that its properties were used as a place for: planning and organizing programs;
holding meetings for directors, volunteers and others; and general office space. The audit was
unable to substantiate the need to use the properties for administrative purposes. In this
regard, audit documentation, the Organization's representations and our own supplementary
research, indicate that the Organization's programs were held at locations other than its own
property. Consequently, we were unable to substantiate the requirement for the Organization
to own and maintain property.
A/13
Our initial concern regarding the intent for which the properties were acquired remains
unresolved. The Organization failed to respond to our concern that the resources devoted to
property were segregated, and that its directors were complacent with respect to deficits and
surpluses resulting from property holdings. Moreover, the Organization was unable to
produce any corporate records to justify why property was purchased, sold, or how the sale or
purchase of property would help further its purposes.
ii. Third party involvement in the purchase of property

In addition to the questionable use of the Organization's properties, the audit findings
revealed a consistent presence of third party involvement in the purchase and funding of the
Organization's properties.
Warden Avenue Property

Audit was unable to verify the source of the initial $140,000 in funding received by the
Organization in 1995 to purchase its first property on Warden Avenue. The property was
subsequently sold in 2000 for $139,000. Our analysis of the Organization's financial
statements indicates that the initial loan was not re-paid, and that these funds were used to
purchase another property. The Organization represented that the lenders were convinced to
forego the loan (converted to a donation) so that moving forward the Organization had funds
available to carry out its activities, including the purchase of other properties.
We also provided the Organization with a detailed outline of the reasoning why we believed
that Mr. Mohammad Sadegh Muaddel Ebrahimi (an individual who has never been reported
to the CRA as a director, trustee or employee of the Organization) used the Warden Avenue
property for his own personal benefit. Our reasoning included the fact that Mr. Ebrahimi's
name was listed as a beneficial owner on land registry and mortgage documentation. CRA
records also indicate that Mr. Ebrahimi reported the Warden Avenue address as his primary
residence from 2001 to 2004. The Organization's representation in this regard was that "Mr.
Ebrahimi never stayed at this property. He lived somewhere in Ajax or Pickering. The original
plan, at the time of purchase of the property, was that he would live in the basement and pay
rent which would take care of the carrying costs but this never happened since the building
was too small for carrying out two functions — religious and providing accommodations. As
such, the building has been used for religious functions ..."
The Organization's representations raise questions as to why it would have listed

Mr. Ebrahimi's name on legal papers, such as the mortgage and land registry documents, if,
in fact, he was not the beneficial owner or the primary resident of this property. We also find it
concerning that Mr. Mohammad Ebrahimi appears to have ties to ABWA.
16th Avenue and Leslie Street Properties

Audit findings revealed that funding for the purchase and maintenance costs associated with
the Organization's properties at 16th Avenue and Leslie Street was financed through the
personal bank account of the Organization's President, Mr. Hosseini-Nassab.27 The
Organization represented that "the funds received from Hosseini-Nassab in 2004 in the
amount of $99,342, this was from the khums that he received as a marja (Grand Ayatollah) ...
27
Mr. Hosseini-Nassab provided $129,533 in funding over a three year period (August 2004 to September 2007) to cover
mortgage and renovation payments for the Organization's properties located at 16th Avenue and Leslie Street.
A/14
Hosseini-Nassab contributed from these collections to the purchase of the property as
required by Islamic law..." The Organization also represented that it conducted fundraising to
pay Mr. Hosseini-Nassab for the mortgage installments on the Leslie Street property.
We are unable to accept the Organization's representations regarding the source of the
funding provided through Mr. Hosseini-Nassab's personal bank account. In this regard, we
note the following.
• The Organization failed to provide any source documentation in support of
its assertions.
• The audit found no documentation in the Organization's books and records
to support the representation that Mr. Hosseini-Nassab used khums
contributions to cover mortgage payments he made on behalf of the
Organization. For example, there is no mention of receiving khums from
Mr. Hosseini-Nassab in the meeting minutes, general ledger, etc. The only
mention of khums is in the Organization's 2004 financial statements where
it is listed as a $2,065 liability and equity. We also note that information
obtained from Mr. Hosseini-Nassab's website and other publicly available
information suggests that Mr. Hosseini-Nassab did not describe himself as
an Ayatollah until 2007, and a Grand Ayatollah until sometime in 2009, after
the funding arrangement in question.28
• The Organization represented that it engaged in fundraising activities to
re-pay Mr. Hosseini-Nassab the funds to cover the mortgage payments for
the Leslie Street property, however, there is no documentation in the
Organization's books and records to outline the terms of repayment.
Our concerns regarding our inability to verify how Mr. Hosseini-Nassab was able to fund the
purchase and maintenance of the Organization's property is heightened by the fact that the
Organization represented to the CRA that it received funding from Iran up until around 2008
and that ABWA claims to have entitlement to the Organization's assets.
. According to the Organization's representations, ABWA officials were adamant

that all of the Organization's assets belonged to the Majma, with ABWA official Mr. Tabrizi
stating the amount owed as $438,512. Mr. Sajan objected noting that the repayment should
only be for the "loan" amount. The Organization failed to provide any representations to the
CRA as to why ABWA believed the Organization owed it $438,512.
We cannot rule out the possibility that the source of funding for the purchase and funding of
the Organization's properties may have originated from ABWA in Iran, or that Mr. Hosseini-
Nassab may have facilitated the transfer of funds through his personal account.
28 Watt, Christopher. "Is there a grand ayatollah in North York." Globe and Mail, April 9, 2010.
https://web.archiye.org/web/20100325221853/http:/www.hoseini.org [listed as Grand Ayatollah Hosseini Nassab].
https://web.archiye.org/web/20081207234823/http://www.hoseini.orq [listed as Ayatollah Seyed Reza Hosseini Nassab].
https://web.archiye.ord/web/20060905065054/http://hoseini.orq [listed as Dr. S. Reza Hoseini Nasab].
A/15
iii. Possible Mortgage Fraud
The audit revealed that the Organization knowingly misrepresented itself in order to secure
mortgages for its properties. The Organization did not deny that it misrepresented itself as the
beneficial owner to financial institutions to obtain financing, City Officials for property tax, and
Land Registry Office regarding Trustee arrangements.
The Canada Mortgage and Housing Corporation defines mortgage fraud as follows: 29
Mortgage fraud occurs when someone deliberately misrepresents

information on a loan application, to obtain mortgage financing that
likely would not have been approved if the truth had been known. This
can include: ...misrepresenting the amount and/or source of your down
payment...adding co-borrowers who will not be residing in the home and do
not intend to take responsibility for the mortgage.
...Borrowers who misrepresent information and straw buyers who allow a

property to be purchased in their name are committing mortgage fraud and
will be liable for any financial shortfall in the event of default. They may also
be held criminally responsible for their misrepresentation.
A registered charity is expected to be bona fide, meaning that it is established and operated
to confer a tangible or objectively measurable benefit upon the public, without personal or
private gain and without purpose of fraud or deceit.3° An organization that operates in a
manner designed to help circumscribe Canada's laws or that is otherwise contrary to
Canadian law, is failing to operate for benefit of the public.
It remains our position that the Organization did not hold title to its properties to advance a
charitable purpose, and it remains unclear as to the true ownership of the property acquired
by the Organization, or the purpose for which that property was acquired. As such it continues
to be our view that the Organization has failed to demonstrate that its resources are devoted
to charitable activities carried out in furtherance of exclusively charitable purposes.
The Organization has not alleviated our concerns with regards to its internal governance and
its adherence to ROLA, in the purchase and control of its properties located at 16th Avenue
and Leslie Street.31 The Organization would have been required to adhere to ROLA and the
29
http://ww.cmhc-schl.gc.ca/en/co/buho/plmayomo.
30 M. Chesterman. Charities, Trusts and Social Welfare London: Weidenfeld and Nicolson, 1979. p. 136; and see generally,
Gilmour v. Coats et al, [1949] 1 All E.R. 848.
31
In accordance with its 1993 and 2006 Constitutions and pursuant to ROLA, the Organization's property was to be vested
with 5 trustees (2004 purchase) and 7 trustees (2007 purchase). The audit found that:
• The 2004 Trust Agreement for, the Organization's 16th Avenue property only had two trustees. The Trust document was
made out in the name "Ahlulbayt Assembly of Canada", which was not the legal name of the Organization at that time.
The property vested only with Mr. Hosseini-Nassab, instead of the five required trustees. The Organization did not meet
its requirement under Article 11, Section 2, of its 1993 Constitution to have the Trust signed by the Organization's
Secretary General and two directors.
• The 2007 Trust Agreement for the Organization's Leslie Street property only had one trustee, Mr. Hosseini-Nassab. The
Trust document was made out in the name "Ahlulbayt Assembly of Canada, which was not the legal name of the
Organization at that time. The property vested only with Mr. Hosseini-Nassab, instead of the seven required trustees.
The Organization did not meet its requirement under Article 13, Section 2, of its 2006 Constitution to have the Trust
signed by the Organization's President and one director.
A/16
wording in its Constitution up until its incorporation under the provisions of the then -Canada
Corporations Act in March 2011.
Our concerns relating to internal governance and the Organization's purchase and control of
property are heightened in consideration of the audit findings which suggest third party
involvement in the purchase of these properties and possible mortgage fraud.
With regard to items (i) and (j) of the Organization's bylaws, it remains unclear what "internal
mechanisms" the Organization has put in place to resolve disputes.

We maintain our position that the Organization operated under its December 31, 2006
Constitution and, in addition, that some of the purposes therein were written to further
unstated collateral purposes, namely to formalize the Organization's purpose to act as an
facilitator organization to support the operational goals of ABWA in Canada.
i. Facilitator Organization
The audit found that the Organization undertook activities that were commensurate with an
umbrella organization by assisting in the establishment of, and fundraising on behalf of, other
organizations; however, the Organization's purposes and activities fail to meet the
requirements to qualify as an umbrella organization. While the Organization denied that it was
seeking to become an umbrella organization, it failed to provide any representations or
supporting information to counter the audit findings and its previous representations to the
CRA which suggest otherwise.
The Organization did not dispute that it provided assistance to its member organizations,
including funding to non-qualified donees and responded that its support to one of the
non-qualified donees was simply to "enable the Iranian community to organize itself". The
Organization's representations in this regard are particularly troubling since it failed to
respond to our concern that the Organization and Mr. Hosseini-Nassab appear to be
facilitating the spread of the Iranian revolutionary ideology in Canada. The Organization's
director, Mr. Ghulam Sajan, also represented that he is a "staunch supporter of the Islamic
revolution".
Comments pertaining to Vancouver Society case and CG-109. How to Draft Purposes for
Charitable Registration
The Organization's representations rely on a dissenting judgment from the Vancouver Society
case. 32 We would draw your attention to the majority judgment in this decision, which did not
rule that devotion of resources is the determining factor in deciding whether an organization
furthers a collateral purpose. In some cases, analysis of the activities and operations will
reveal that an organization is furthering an unstated purpose.33 The courts have confirmed
32
Vancouver Society at paragraph 61, "[t]he point at which the pursuit of ancillary activities expands into an 'end in itself is a
nice question, and has been the subject of considerable debate". There is no "bright line test" in this regard. As an example
of the Act prohibiting the furthering a collateral purpose, the Supreme Court noted that at the time, "that a charitable
organization must devote "substantially all" of its resources to charitable activities in order to benefit from that provision's
deeming of certain ancillary political activities to be charitable activities."
33 See for example, Action by Christians for the Abolition of Torture v. Canada, (2002) FCA 499.
A/17
that an organization that undertakes activities that further an unstated non-charitable purpose
is not eligible for registration as a charity under the Act.34
With regard to the Organization's reference to CG-019 (How to Draft Purposes for Charitable
Registration), if an organization's activities further an unstated charitable purpose, the
organization may amend its governing documents so that its activities support a stated
charitable purpose.35 We would agree that had the Organization's activities been determined
to be charitable, this may have been a viable option for continued registration; however, the
Organization's activities fail to meet the requirements to qualify for registration as a charitable
umbrella organization because it assisted in the establishment of, and engaged in fundraising
for, non-qualified donees.
At no time did the audit determine that the Organization's operation as a facilitator group was
ancillary and incidental. On the contrary, as the audit findings indicated that the Organization
was operating in furtherance of an unstated collateral purpose — namely, as a facilitator group
- we considered whether or not it would possibly qualify as an umbrella type organization.
As noted in CPS-026, a charitable umbrella organization is one that works to achieve a

charitable goal by supporting, improving, and enhancing the work of groups involved in the
delivery of charitable programs. An organization that devotes its resources to improving the
efficiency and/or effectiveness of the activities of other registered charities is itself charitable.
This is so precisely because, as the Act and common law require registered charities to be
exclusively charitable, improving the efficiency and/or effectiveness of such groups can only
result in an increase to the overall level and quality of charitable activity. It is also in keeping
with the general framework of the Act, which allows registered charities to transfer money and
other resources to registered charities and qualified donees.
The three types of umbrella organizations that may qualify to become registered charities are
organizations that:
• Assist other registered charities;

• Advance a recognized charitable purpose; or
• Hold title to property for other registered charities.
We maintain our position that the Organization's formal purposes are not clearly worded to
qualify as an umbrella group. Further, the Organization's activities fail to meet the legal
requirements to allow it to qualify as a charitable umbrella organization.
With regard to the Organization's use of its resources, the audit found that the Organization
has focused very little of its financial resources on undertaking activities in furtherance of its
stated purposes. Rather, a significant portion of the activities undertaken by the Organization
for the period under review were determined to not be charitable as that term is understood
under Canadian law. In this regard, the audit revealed that the Organization expended
34
Vancouver Society at paragraphs 152-159 and 194; Action by Christians for the Abolition of Torture v. Canada, (2002)
FCA 499; Karen Kayemth Le Jisroel LTd. V. IRC [1931] 2K.B. 465; on appeal [1932] A.C. 560; and Guaranty Trust Co.of
Canada v Minister of National Revenue, [1967] S.C.R. 133.
35 As outlined above in Section 1.1, the Organization has a mix of charitable and non-charitable purposes; as it stands, none
of the Organization's charitable purposes are clearly worded to quality as an umbrella organization.
A/18
80.33% of its resources on non-charitable activities in 2008; 80.76% in 2009; and 79.22% in
2010. The Organization's resources were expensed primarily on property and mortgage
interest36 and gifts to non-qualified donees.37
ii. Support the operational goals of ABWA
Relationship between the Organization and ABWA

Appendix-A of the AFL (attached at Appendix "C") provided detailed background information
on the Islamic Republic of Iran, its foreign policy, support for Hezbollah, and the role of the
Islamic Culture and Relations Organization (ICRO) in coordinating Iran's cultural and
prorogation activities abroad. We also detailed ABWA's goals, purposes and its alignment
with Hezbollah and Iran's foreign policy. Our letter clearly communicated why the
Organization's relationship with ABWA was problematic. Specifically, we note the following
excerpt:
The government of Iran appears to exert a high degree of influence

over ABWA and its operations. ABWA collaborates with the Islamic
Culture and Relations Organization (ICRO), an affiliate of the Ministry
of Culture and Islamic Guidance of the Government of Iran. One of
ICRO's purposes includes the dissemination of information about the
principles and realities of the Islamic Revolution, commonly referred
as "exporting the Islamic revolution". In fact, for Ayatollah Khomeini,
exporting the Islamic Revolution became one of the chief pillars of the
country's revolutionary ideology and the principal goal of Iranian
foreign policy. ABWA's political weight can be viewed from the
composition of its current and former Supreme Council membership
who held/hold positions of significant authority within the Iranian
government, including advisors to Ayatollah Khomeini and
President Ahmadinejad.
ABWA maintains ties with Hezbollah, an organization listed as a

terrorist entity in Canada in 2002. The leader of Hezbollah,
Hassan Nasrallah, sits on ABWA's Supreme Council; and key
members of Hezbollah attend and speak as members at ABWA
conferences, including those attended by the Organization's directors.
Furthermore, the Secretary General of ABWA,
Mohammad Hassan Akhtari, is generally referred to as the
"operational father" of Hezbollah, and ABWA officials have expressed
support for Hezbollah resistance to the occupation of Palestine
through jihad.
We acknowledge that there appears to be conflict between some of the Organization's

directors and ABWA officials, and we have considered the Organization's representations in
this regard. Despite documentary evidence suggesting otherwise, we also understand that the
Organization's position is that it is in no way connected to the purposes and agenda of
se
51.06% in 2008; 43.23% in 2009; and 52.13% in 2010.
23.62% in 2009.
A/19
ABWA; nevertheless, following our review of the Organization's submissions, the audit
information, and our own supplementary research, it remains our view that the Organization
supports the operational goals of ABWA, as evidenced by the following.
Support for the Operational goals of ABWA

As originally mentioned in our July 21, 2008, letter, and again in our AFL, certain Articles and
Sections of the Organization's 2006 Constitution suggest to us that the Organization's
operations are carried out in adherence to, and in furtherance of, the purposes of ABWA. The
Organization did not dispute the similarity in the purposes of the two organizations, but denied
that it supports the operations of ABWA.
ABWA s news agency identifies the Organization as a branch

ABWA's news agency describes Mr. Hosseini-Nassab as the "chairman of the local chapter of
Ahlul Bayt Canada". While we accept that the Organization has no control over what ABWA
places on its website, Mr. Hosseini-Nassab was directly involved in managing and purchasing
the Organization's properties and the mortgage payments were made from
Mr. Hosseini-Nassab's personal bank account. This is concerning given the Organization's
relationship with ABWA, and because the Organization represented that it has received
donations from Iran.
Spread of the Iranian revolutionary ideology in Canada

The Organization failed to directly respond to our concerns that its President,
Mr. Hosseini-Nassab, may have used the Organization in part to facilitate the spread of the
Iranian Revolutionary ideology in Canada. This is particularly concerning given that Mr. Sajan
represented that he supports the "Islamic Revolution" and that the Organization provided
funding to a non-qualified donee in order to "enable the Iranian community to organize itself".
ABWA's involvement in the Organization's affairs

i. Claim of funds owed to ABWA
It is our understanding that ABWA's Secretary General, Mohammed Hassan Akhtari and
ABWA official, Sayyed Hassan Tabrizi, claim that the Organization owes money to ABWA
(from a previous loan) and that they have refused to pay it back. It would appear that ABWA's
Secretary General may have started judicial proceedings in Iran to retrieve the funds in
question.
While we have considered the Organization's representations, they do not correspond with
audit findings and often conflict with its other representations.
• Audit findings reveal that the Organization purchased property in 1995 with a $140,000
loan from an unknown source. The property was sold in 2000 for $139,000. Our
analysis of the Organization's financial statements indicates that the loan was not
repaid, and that the funds were used to purchase another property. The Organization
represented that the lenders were convinced to forego the loan so that moving forward
the Organization had funds available for carrying out its activities, including the
purchase of other properties.
• In recapping his meeting with ABWA officials in Iran, Mr. Sajan represented that he told
ABWA that he had "no record or recollection of such a loan." Then, Mr. Sajan went on
to represent that when "it came time to deciding the amount that Majma considered
was due to it. I [Sajan] was told all of the assets belonged to the Majma. I stated that it
A/20
should only be the 'loan' amount but Mr. Akhtari insisted on all of the assets.
Mr. Tabrizi stated that it was $438,512."
• The amount mentioned by Mr. Tabrizi closely corresponds with audit findings regarding
the total value of the Organization's assets at that time.38
ii. Organization's Declaration to ABWA — dated 2011-09-15

The Organization represents that it was forced to sign a declaration, under duress, to hand
over its assets to ABWA. The declaration also states that Mr. Sajan and Mr. Hosseini-Nassab
confirm that they "will not act any more on behalf of the Ahlul Bayet World Organization —
Iran..."
The Organization's declaration to ABWA contradicts the Organization's assertion that it is not
affiliated with ABWA. The Organization's Board of Directors meeting minutes from
2011-11-01 state that Mr. Hosseini — Nassab resigned from the Organization in his role as
President. Although his resignation was accepted, he continues to act as a director of the
Organization."
iii. Organization's meeting with ABWA representative, Sayyed Hassan Tabrizi

There are also inconsistencies in the Organization's representations regarding its meeting
with ABWA official, Mr. Tabrizi in November 2011. The Organization represented that they
(Mr. Sajan and Mr. Hosseini-Nassab) met with Mr. Tabrizi at the
Al-Huda Lebanese Muslim Society (the Society). During this meeting, Mr. Tabrizi claimed that
he had a letter from ABWA authorizing him to take control of the Organization. The
Organization represents that they advised Mr. Tabrizi he had no authority to control the
Organization and that their Board of Directors had also refused to meet with him in this
regard.
Audit findings indicate that the Society is listed as one of the Organization's member
organizations. Further, the two organizations have a shared director, Mohamed Chakroun,4°
and official, Adnan Noureddine.41 Our supplementary research reveals that the Society invited
Mr. Tabrizi to preside over its Muharram program in November 2011. In this regard, we find it
difficult to reconcile that the Organization's board members refused to meet with Mr. Tabrizi
when presumably some of these same officials would have provided their consent to invite
Mr.Tabrizi to preside over their religious program. The Organization's meeting minutes are
also silent regarding the board of director's refusal to meet with Mr. Tabrizi and ABWA's
attempt to gain control over the Organization and its assets.
The Organization's directors attend ABWA conferences

The Organization failed to respond to our concern that its directors attend ABWA conferences
and that all the expenses are paid by ABWA. As noted above, ABWA's website states that its
conference is for its members.
38 In September 2011, the Organization held $450,000 CAD in their Bank of Montreal GIC Investment Account.
39 Organization's T3010s 2010-2013.
49 Organization's T3010s 2010-2013 and the Society's T3010s 2010-2013.
41 Society's T3010s 2010-2013. The Organization archived website lists Adnan Noureddine as a member of its Public
Relations Committee.
A/21
The Organization invited ABWA representatives to its functions
During the audit interview, the Organization represented to the CRA that all of its guest
speakers were from Canada; however it had invited ABWA's Secretary General,
Sheikh Mohammed Hassan Akhtari, to one of its Annual Eid-ul-Fitr dinners. The invitation to
ABWA's Secretary General is significant given it was the only one the Organization extended
to an individual outside of Canada.
Reporting to ABWA
Although the Organization represented that it had no control over what ABWA posts on its
website, it failed to respond to our concern that its former trustee, Mr. Mohammad Ebrahimi
appears to have had a report posted on ABWA's website, and that his current position
appears to be with an ABWA-run mosque in Brazil.
ABWA's logo on the Organization's website

We have considered the Organization's representations that it stopped using its logo after it
realized it was similar to ABWA's. The Organization also represented that this logo is a
standard symbol of Shias. However, given the Organization's relationship with ABWA, it is
difficult to reconcile that the Organization could have used ABWA's logo for four years without
realizing they were the same. We also note that our own supplementary research was unable
to verify that the logo is a standard symbol used by adherents to the Shia Islamic faith, and
the Organization failed to provide any documentation in support of this assertion.
Funding from the Cultural Centre of the Republic of Iran

The Organization confirmed that it received funding from the Iranian Cultural Centre (ICC),
but failed to address the issue of the ICC's involvement and support of the Organization's
Eid-ul-Fitr celebration, or its relationship with Mr. Hamid Mohammadi, the former cultural
affairs counsellor at the Iranian embassy. In this regard, we note that four of the six emails
provided by the Organization - in support its representations pertaining to ABWA — were also
copied to Mr. Hamid Mohammadi.
As noted in our previous correspondence, ABWA is identified as a department of the

Islamic Culture and Relations Organization (ICRO), which is an affiliate of the
Ministry of Culture and Islamic Guidance of the Government of Iran. The ICRO has offices
throughout the world in the form of "Cultural Houses" that are associated with Iran's foreign
embassies. The ICC appeared to be ICRO's previous Canadian office. 42 43
Because of ABWA's strong political agenda and direct affiliations to the

Islamic Republic of Iran and Hezbollah," we maintain the position that a registered charity's
affiliation with and/or control by such an organization, lacks the charitable requirement to
meet the public benefit test.
42 "
In which countries does the ICRO carry out its cultural activities?" Islamic Culture and Relations Organization,
http://en.icro.ir/index.aspx?siteid=257&pageid=8322&p=1&showitem=367 (accessed 2012-07-31).
43
"What is the designation of the offices of the ICRO outside Iran?" Islamic Culture and Relations Organization,
http://en.icroir/index.aspx?siteid=257&pageid=8322&p=1&showitem=368 (accessed 2012-07-31).
44
Department of Foreign Affairs, Trade and Development Canada: Backgrounder of Hezbollah. "Hezbollah is a radical Shia
group ideologically inspired by the Iranian revolution... Hezbollah is a proxy of Iran. In addition to the spiritual and religious
connection, which is genuine and important to both sides, Hezbollah is seen by Iran as practical asset. Hezbollah is a
valuable tool to extend Iranian influence regionally, exert pressure on Israel directly and expand its reach internationally."
http://www.international.gc.ca/media/aff/news-communiclues/2015/01/28baspx (Accessed 2015-05-07).
A/22
The issue of public benefit is at the heart of every inquiry into an organization's claim to
charitable status under the Act. The determination of the public benefit requirement involves
the application of a two-part test: the first part of the test generally requires that a tangible or
objectively measurable and socially useful benefit be conferred, directly or indirectly; the
second part of the test requires that the benefit be delivered to the public as a whole, or to a
sufficient section of the public. An organization must be established for the benefit of the
public at all times. A charity that fails to meet the public benefit test could have its registration
revoked.
As detailed above, the Organization's representations regarding its relationship with ABWA
conflict with the audit findings and its own previous representations to the CRA.
It is our position that the Organization has failed to demonstrate that it meets the
requirements under subsection 149.1(1) of the Act for continued registration as a charitable
organization that devotes all of its resources to "charitable activities carried on by the
organization itself". This constitutes sufficient reason to revoke the Organization's status as a
registered charity under paragraph 168(1)(b) of the Act.
2. Issue 2: Failed to comply with or contravened any of sections 230 to

231.5 of the Act
Our audit found a number of deficiencies related to the Organization's obligation to maintain
and provide books and records.
Doctrine of faith
The Organization failed to provide its doctrine of faith as requested by the CRA in its letter of
July 21, 2008, and during the October 2011 audit interview.
Documents related to the Organization's property purchases and other related expenses
The Organization failed to maintain documents pertaining to property purchases as part of its
books and records. In this regard, the last two properties recorded on its financial statements
were purchased and financed through a director's personal bank account,
Mr. Hosseini-Nassab. As these records were not maintained by the Organization, and the
CRA does not have the banking records of Mr. Hosseini-Nassab, we were unable to reconcile
revenue and expenses with respect to these properties.
Bank account
The Organization failed to provide information or documents on its Bank of Montreal account
number (specifically cheques and deposit slips for this account). The CRA
had to request these documents directly from the Bank of Montreal.
Records of communications/letters between ABWA and the Organization

In our letter of November 16, 2011, the CRA requested that the Organization provide a
detailed history of its relationship and/or contact with ABWA regardless of the purpose or
outcome. The Organization failed to respond to our questions regarding its history with
ABWA, and we have not been provided with documentation regarding invitations by ABWA to
its conferences, or to ABWA representatives to the Organization's functions. Without such
information, we were unable to confirm the Organization's assertion that it is not a branch of
ABWA.
Meeting minutes
The meeting minutes provided to the CRA were deemed to be inadequate for the following
reasons:
1) The Organization failed to create and/or retain minutes for any of its committee
meetings and/or the meetings of its Board of Trustees; and
2) Its Board of Directors meetings' minutes were signed by only one director, had
very little content, failed to mention significant events in the Organization's
activities, and appear to have been created in response to the issues and/or
concerns raised in our July 21, 2008 letter.
These insufficiencies hindered our ability to determine who exercises decision-making

power/direction and control over the use of the Organization's resources (funds, personnel,
and property).45 This was particularly important considering the Organization's relationship
with ABWA and the concerns regarding the purchase and use of its properties.

The Organization submits that in accordance with the Federal Court of Appeal's findings in
Prescient Foundation v. Minister of National Revenue (2013 FCA 120), the CRA has an onus
to ensure that the Organization understands its obligations concerning the books and records
requirement under the Act. Specifically, the Organization makes reference to compliance with
paragraph 230(2)(a) of the Act which was at question in the holding of Prescient Foundation.
In this regard, the court held at paragraph 47 that:
For the revocation of a registration to be reasonable under this

ground, the Minister must (a) clearly identify the information which
the registered charity has failed to keep, and (b) explain why this
breach justifies the revocation of the charity's registration. It is not
sufficient to simply state that the charity has failed to keep proper
records. Rather, the Minister must clearly set out the particulars of
the alleged breach.
The Organization submits that the Minister has "less drastic administrative corrective
measures or intermediate sanctions available to him, such as formal notices, compliance
agreements, or the suspension of a charity's tax receiving privileges for one year under
paragraph 188.2(2)(a) of the Act" and as such, it should not have its registered status revoked
on the basis of inadequate books and records.
Doctrine of faith
The Organization submits that it clarified its doctrine of faith as much as it could in its letter
dated October 18, 2008.
45As detailed in Issue 4 of this letter, the Organization also failed to report all the names of its officials and directors, despite
their key role in fundraising and purchasing property on behalf of the Organization.
A/24
Documents related to the Organization's property purchases and other related expenses
The Organization acknowledged that funding for its 60 Green Lane was initially provided as a
loan. The Organization submits that the lenders were convinced to forego the loan so that
moving forward the Organization had funds available for carrying out its activities, including
the purchase of other properties.
The Organization acknowledged that its properties in Richmond Hill were held in the name of
Mr. Hosseini-Nassab, in trust for the Organization, so that it would be able to secure
mortgages. The Organization agreed that Mr. Hosseini-Nassab covered the mortgage
payments. The Organization submits that it initially planned to hold a fundraiser to cover the
monthly installments; this did not take place and Mr. Hosseini-Nassab continued making the
payments.
The Organization submits that funds received from Mr. Hosseini-Nassab in 2004 in the
amount of $99,342, was from the khums that he receives as a Marja (Grand Ayatullah).
With respect to Leslie Street property, the Organization submits that it did some fundraising
on an ongoing basis and as a result was able to reimburse Mr. Hosseini-Nassab for the
mortgage payments he was making.
Bank Account
The Organization submits that all of the bank statements for its Bank of Montreal account
were included in the files provided to CRA; however since the account did not exist at the time
of the audit, some records were overlooked.
Records of communications/letters between ABWA and the Organization

The Organization provided information on Mr. Sajan's trip to the ABWA conference in Iran in
September 2011 and related complications (detailed in Issue 1). The Organization also
provided information on a visit from Iranian ABWA representative,
Mr. Seyed Hassan Ojaghi Tabrizi, and his alleged attempt to take control of the Organization.
Meeting Minutes
The Organization did not provide any representations pertaining to deficiencies in its meeting
minutes.
Barn Earthquake donation

The Organization submits that it intended to provide relief for the victims of the earthquake in
Iran. However, it was difficult to send money to Iran; therefore they approached the donor and
asked if he would agree that the funds instead be used for its activities in Canada.
CRA's Conclusion
The Organization's response to the AFL makes reference to the Federal Court of Appeal's
comments in the Prescient Foundation case where the court notes that in order for the
revocation of a registration to be reasonable under 168(1)(b) of the Act, specifically with
regards to non-compliance with subsection 230(2), the Minister must:
a) Clearly identify the information which the registered charity has failed to keep; and
b) Explain why this breach justifies the revocation of the charity's registration.
A/25
In this regard, our AFL contained a detailed list of the Organization's non-compliance with
subsection 230(2) of the Act. That letter also explained how the non-compliance justified the
Organization's potential revocation and the reasoning why the specific records were clearly
relevant to the audit. We have considered the Organization's representations regarding these
deficiencies; however, with the exception of one area, the Organization's representations
have not overcome the non-compliance concerns as outlined below.
Doctrine of faith
We acknowledge and accept the information and representations provided by the
Organization with respect to its doctrine of faith.
Property documents
We are unable to accept the Organization's representations that $99,342 provided from
Mr. Hosseini-Nassab was derived from the khums that he received as a Marja. In this regard,
the Organization failed to provide any supporting documentation to demonstrate that
Mr. Hosseini-Nassab collected khums towards the payments for the properties and the
Organization's books and records do not support this assertion. For example, there is no
mention of receiving khums from Mr. Hosseini-Nassab in the meeting minutes, general
ledger, etc. The only mention of khums in the Organization's financial statements is in 2004
where it is listed as a $2,065 liability and equity.
The Organization failed to provide, and the audit did not find, any documentation to support its
representation that it conducted fundraising to pay for the properties.
The Organization failed to respond to the concern that it did not maintain proper records
relating to property purchases. As noted in the AFL, this information was required in order to
reconcile revenue and expenses for the purchase of properties located at Leslie Street and
16th Avenue.
Bank of Montreal Account

Although the Organization represented that it provided the CRA with bank statements for its
Bank of Montreal account the provision of bank statements was not the
concern identified in our AFL, but rather that the Organization failed to provide certain
"cheques and deposit slips", which contained the transactions relating to the Organization's
payments to facilitate a property purchase for a third party. As outlined in our AFL, this
information was clearly relevant to the audit.
The CRA advised the Organization prior to the commencement of the audit, that documents
such as bank statements, cancelled cheques, wire transfers, and deposit books were to be
ready for inspection during the audit. The Organization's representation that "this account did
not exist at the time of the audit" is irrelevant. Despite the fact that the Organization closed the
account in August 2009, the information requested by the CRA clearly fell within the period
under audit, as the financial transactions in question related to the fiscal years 2008 and
2009.
Records of communications/letters between the Organization and ABWA

While we acknowledge that the Organization has provided further information relating to
Mr. Sajan's trip to the ABWA conference in Iran in September 2011, the response to the AFL
A/26
and the January 12, 2012 submission do not adequately address the questions contained in
our letter of November 16, 2011.46 Moreover, as outlined below, our analysis of both the
material submitted, and the documentation collected during the audit, found significant gaps
and contradictions in the information and representations provided to the CRA.
Organization's draft letter to ABWA

As outlined at page 24 of the AFL, the Organization informed the CRA that it had drafted a
letter to ABWA for the purpose of addressing ABWA's attempt to control its affairs in Canada.
Mr. Sajan represented to CRA auditors during the audit interview that this matter was dealt
with over the telephone, and thus the letter was not sent. Mr. Sajan later certified this
representation to be true after signing a copy of the audit interview. We find it concerning that
Mr. Sajan now represents that this statement is not true, and that the Organization's Board of
Directors has chosen not to pursue the matter. There continues to be a lack of information
regarding the outcome of ABWA's attempt to control the Organization's activities in Canada.
ABWA file on the Organization

On page 55 of the Organization's representations, Mr. Sajan represents that the "Majma has
a thick file on our Organization. We used to provide it with information." The CRA has not
been provided with any details pertaining to what information the Organization provided to
ABWA, or the reasons for doing so. While the Organization maintains that they have no
affiliation with ABWA, the audit findings suggest otherwise. For example, the fact that the
Organization provided information to ABWA could explain how it obtained a copy of the
Organization's Eid ul-Fitr Report. Moreover, ABWA officials appear to have specific details on
the Organization's financial dealings and assets, as detailed at page 59 of the Organization's
response.
Judicial Claim
Page 10 of the Organization's response, states that "...Ghulam was advised that the
Secretary-General has a claim against him that is of a 'judicial nature'." The Organization has
failed to provide the CRA with any further information pertaining to the alleged judicial claim
against its assets. The absence of such records limits the CRA's ability to fully assess the
relationship between the Organization and ABWA.
The lack of information and records, together with the misrepresentations involving the
Organization's relationship with ABWA, is cause for significant concern given ABWA's strong
political agenda and direct affiliation with both the Islamic Republic of Iran and Hezbollah.
Given that ABWA claims to have right to the Organization's assets in Canada, and has
46The CRA's November 16, 2011 letter, requested the Organization provide further information and clarification on the
Organization's activities including its relationship with ABWA, and/or contact with Ahlul Bayt World Organization (ABWA)
regardless of the purpose or outcome. The history should have answered questions, such as:
• Who from ABWA contacted the Organization?
• Who from the Organization was in contact with ABWA?
• What was the purpose of ABWA's contact with the Organization?
• When did contact between ABWA and the Organization begin?
• How often has ABWA contacted the Organization?
• When did ABWA initially contact the Organization?
• How does ABWA and the Organization communicate with each other?
A/27
purportedly attempted to gain control over the Organization's operations, this information was
vital to the audit.
Meeting minutes
The Organization failed to provide any representations or further information relating to:
• The absence of meeting minutes for its various committees and trustees;
• Our concern that the meeting minutes provided are signed by only one director;
• The minutes appeared to have been created in order to respond to the CRA's
concerns; and
• The lack of information in the minutes relating to major activities, property
purchases, assisting third party organizations, and its relationship with ABWA.
An essential component of a charity audit is the ability to review and analyse an

organization's meeting minutes in order to gain a proper understanding of how an
Organization manages its affairs. These records provide important information that is
necessary to document matters such as the organization's operational focus and who
exercises decision-making power over the use of its human, physical, and financial resources.
Recognizing the importance of maintaining records that reflect decision-making in an
organization, Income Tax Regulation 5800(1) requires that a registered charity retain copies
of any record of the minutes of meetings of its executive or members for at least two years
beyond the date on which its registration is revoked.47
In this regard, we have very little in the way of documentation to reflect how and by whom key
operational decisions are being made. The lack of regular board meetings and the cursory
nature of the record of discussions strongly suggest that the directors of the Organization do
not exercise meaningful control over its affairs. We note, for example, that there is little if any
discussion of the Organization's activities, purchase of properties, or interaction/interference
from ABWA.
Barn Earthquake donation

Concerning the 2004 donation for the Barn earthquake, the Organization acknowledged that
much time had lapsed from the date of the specific gift in 2004 and the decision to use the
funds, which were purportedly intended for the Barn earthquake, towards its general operating
budget.
During the audit, the CRA requested further information from the Organization pertaining to
the specified gift in order to determine the reason why the Organization transferred these
funds to its general operating account during the period under review.
47
Regulation 5800 (1) requires a registered charity to maintain copies of meeting minutes.
For the purposes of paragraph 230(4)(a) of the Act, the required retention period for records and books of account of
a person are prescribed as follows:
(d) in respect of
i) Any record of the minutes of meetings of the executive of a registered charity or a registered Canadian
amateur athletic association,
ii) Any record of the minutes of meetings of the members of a registered charity or a registered Canadian
amateur athletic association...
The period ending on the day that is two years after the date on which the registration of the registered charity...
under the Act is revoked.
A/28
While we have considered the Organization's response, we find it difficult to reconcile that the
Organization would not have created or maintained any records pertaining to discussions
involving a large, lump sum donation, or the decision to use the directed donation for another
purpose. Moreover, it is also troubling that the Organization failed to disburse this amount to a
qualified donee undertaking relief programs in response to the Bam earthquake, but rather
held onto the funds for several years before using the funds for its own general operating
purposes.
We considered the Organization's suggestion that its non-compliance under sections 230 to
231.5 of the Act should be dealt with through non-revocation action such as a compliance
agreement. However, due to the serious nature of the non-compliance set out above, and
with respect to Issue 1 of this letter, we are unwilling to accept the Organization's proposal to
enter into a compliance agreement.
As evidenced by the audit findings, the Organization has not met its requirement under
subsection 231.1(1) to allow proper inspection, audit, and examination of its books and
records by failing to provide information and documentation as requested by the CRA. The
lack of documentation has limited the CRA's ability to fully assess the Organization's
operations. It is our view that these records should have been kept and made available to us
in accordance with the requirement under paragraph 230(2)(a) of the Act that a registered
charity keep "information in such form as will enable the Minister to determine whether there
are any grounds for the revocation of its registration under this Act."
It is our position that the Organization failed to maintain and provide books and records in
accordance with sections 230 to 231.5 of the Act. This constitutes sufficient reason to revoke
the Organization's status as a registered charity under paragraph 168(1)(e) of the Act.
3. Issue 3: Issued a receipt for a gift or donation otherwise than in

accordance with the Act and the regulation or that contains false
information
Our audit findings indicated that the Organization issued donation receipts for gifts intended
for the , a non-qualified donee. This observation was based on the fact that:
• The Organization issued donation receipts for gifts it received from directors of the
, and residents of Brampton (where the School is located); and
• The Organization forwarded $12,140 to the
We advised the Organization that a registered charity that contravenes the receipting
requirements of the Act by issuing receipts on behalf of, or in the name of, another person is
liable, under subsection 188.1(9), to pay a penalty equal to 125% of the eligible amount
stated on the receipt(s) as follows:
2009 Taxation Year

: $ 12,140 X 125% penalty = $ 15,175
A/29
The Organization submits that it did not understand its obligations under the Act concerning
the donation receipts provided for scholarships to attend the . The
Organization acknowledged that it gifted to a non-qualified donee and is willing to accept the
penalty of 125% of the eligible amount stated in the receipts through a compliance agreement
should the Minister determine that revocation is not warranted in this case.
CRA's Conclusion
In consideration of the serious concerns set out in Issues 1 and 2 of this letter, we are
unwilling to accept the Organization's proposal that it is willing to pay a penalty as set out in a
compliance agreement. Reference is made to the Federal Court of Appeal's ruling in
International Pentecostal Ministry Fellowship of Toronto (IPM) v. The Minister of National
Revenue48 and to the CRA's published guidance on the application of sanctions, which clearly
states that "the Act allows us to select the tool appropriate to the circumstances" and that, in
serious cases of non-compliance, we are prepared to move directly to revocation.49
It is our position that the Organization has issued a receipt for a gift or donation otherwise
than in accordance with the Act and its Regulations or that contains false information. This
constitutes sufficient reason to revoke the Organization's status as a registered charity under
paragraph 168(1)(d) of the Act.
4. Issue 4: Failed to file an information return as required under the Act
The audit found that on a number of occasions the Organization made significant errors in
reporting and misrepresented information on its financial statements that was then carried
through and reported on its Form T3010s. In addition, on at least two occasions over the audit
period, significant errors were made and adjusted through the following year's T3010 because
the Organization did not complete and submit the appropriate form to correct the error. In
addition, these errors were also misrepresented in the following year's books and records.
The Organization also entered into arrangements with other organizations and individuals and
reported these as transactions within its own books and records. In this regard we note:
FYE 2008-12-31
a) The Organization deposited $58,282 into its Bank of Montreal account,5° but did not report
these funds on its Income and Expenditure account, or its T3010. As a result, Line 4700 -
Total revenue was misrepresented.
b) The Organization did not report all of its receipted donations on its 2008 T3010. As a
result, Line 4500 - Total eligible amount of tax-receipted gifts, failed to report an amount of
$8,550.
48 2010 FCA 51, Docket: A-215-08.

49 Guidelines for applying the new sanctions http//www.cra-arc.qc.ca/chrts/plcy/nwsnctns-eng.html.
50 As per hand written notes on the bank statements this account was used to issue receipts, mortgage and condo payments
for Imam Mandi Islamic Centre (IMIC). It appears that this account was created and subsequently closed to manage a
property purchase and facilitate receipting of donations for gifts made to IMIC.
A/3 0
c) The Organization reported a "Prior Year Correction" of $12,660 on its Income and
Expenditure account and then reported that same amount on its Qualified Donees
Worksheet (T1236) in 2008 as a gift for the Imam Mandi Islamic Centre (IMIC). This error
was then further misrepresented on Line 5050 - Total gifts to qualified donees excluding
enduring property.
d) The Organization misreported mortgage interest of $20,855 on its Income and

Expenditure account. According to our analysis, approximately $15,000 of this amount
represents a prior year expense associated to the settlement of the sale of the
16th Avenue property. As a result of this error, Lines 4820, 4850, and 4950 were all
incorrectly reported. When the Organization was asked about the reported interest amount
it advised that it was a calculation error.
FYE 2009-12-31
a) Revenue reported on Line 4700 - Total revenue included $10,580 deposited into the
Organization's bank account intended for Mr. Hosseini-Nassab. This amount was part of
the $26,261 transferred into the Organization's bank account by Mr. Chawki Noureddine.
The Organization attempted to cover this error in 2010 by misrepresenting this amount as
a prior year expense.
b) Line 5000 regarding expenditures on charitable programs included $12,140 that was
misrepresented as "Education expenses" on the Income and Expenditure account. In this
regard, this amount reflects the Organization's participation with a third party receipting
scheme with a non-registered organization.
FYE 2010-12-31
a) The funds transferred through the Organization's account for the benefit of
Mr. Hosseini-Nassab were identified as a "prior year correction" of $10,580 on its Income
and Expenditure account and this amount was further misrepresented on the T3010
expenditure Lines 4920, 4950, 5040 and 5100 as this amount was not an expense related
to the Organization's activities.
b) The Organization reported $43,553 on Line 4600 as net proceeds; however, our
calculations reflect net proceeds of $92,834.40.
Audit findings also revealed that the Organization failed to report all of its directors, trustees,
and/or like officials on its T3010s.
FYE 2008-12-31
a) The Organization represented that $58,282 was collected by the IMIC and deposited
into the Bank of Montreal account in order to meet the mortgage expenses. Since this
income would have been reported by the Imam Mandi Centre, this was not included.
The Organization did not issue tax receipts for these deposits. If a correction is still
required, the Organization will complete a Form T1240.
b) Regarding receipts numbers 40 and 41, this was an error.
A/31
c) The Organization represented that it thought this was the best way to correct the error
in 2007.
d) The interest was calculated for past periods as well. This amount was included in the
final payment to Mr. Hosseini-Nassab when the property was sold. Therefore, if there
are any corrections to be made to T3010, the Organization would appreciate guidance
from CRA.
FYE 2009-12-31
a) The $10,580 was a genuine error and there was no attempt at misrepresentation.
b) The Organization acknowledged the misreporting at Line 5000 and its financial
statements, and that it issued receipts to a non-qualified donee,
FYE 2010-12-31
a) There was an error in reporting the $10,580 and this was disclosed as such.
b) No response was provided regarding amount listed at Line 4600.
The Organization submits that the reason some of the names were not reported as directors
was because the names were mentioned as suggestions in some meetings, but they were not
appointed as such.
The Organization recognizes that certain practices were not sufficient to comply with all
aspects of the requirements of the Act and its Regulations. The Organization submits that it
never willingly contravened the provisions of the Act and has always expressed a willingness
to bring itself into compliance. The Organization references the CRA's sanction guidelines,
which note that the CRA starts with educational methods to obtain compliance and then
moves progressively through to compliance agreements, sanctions and finally revocation.
CRA's Conclusion
As outlined below, the Organization's representations have not satisfactorily addressed all of
the concerns set out in our AFL.
FYE 2008-12-31
a) The Organization's representation that donation receipts were not issued for these
particular funds does not address our initial concern. The Organization failed to provide
any documentation to support the assertion that the funds in question were revenue that
belonged to the IMIC.
b) The Organization admits the error on the 2008 T3010.
c) The Organization failed to file Form T1240 to amend its 2008 T3010.
d) The Organization failed to file Form T1240 to amend its 2008 T3010. The Organization
represented that it did not understand the errors pertaining to the incorrect calculation of
the net proceeds from the disposition of property which resulted in underreporting its
revenue.
FYE 2009-12-31
a) The Organization admits the error on the 2009 T3010.
b) The Organization represented that it did not understand its receipting obligations.
A/32
FYE 2010-12-31
a) The Organization failed to file Form T1240 to amend its 2010 T3010.
b) The Organization failed to respond to the inaccurate reporting at Line 4600.
The Organization's representations regarding its failure to report all of its directors/trustees
and/or like officials on its T3010s do not address our concern that these individuals' names
appear on its website and property documentation as directors. This is particularly concerning
given the fact that the CRA has not been provided with an explanation regarding the role that
these individuals play in managing the affairs of the Organization, including, but not limited to,
the purchasing and title holding arrangements of the Organization's property holdings.
We have considered the Organization's request to enter into a Compliance Agreement and/or
be subject to financial penalties and sanctions to remedy the non-compliance identified. In
isolation, Issue 4 could be considered sanctionable, and a Compliance Agreement with T1240
adjustments could be entered into in order to correct the errors. However, in consideration of
the other serious non-compliance concerns that have been identified (Issues 1 and 2), the
CRA is unwilling to proceed with such compliance actions.
The Act requires the Organization to file an information return and a public information return
for the year in prescribed form and containing prescribed information.51 The prescribed
information is that which is deemed by the prescribed form, being a Registered Charity
Information Return (T3010). The T3010 further requires that an officer certify that the
information given is, to the best of his knowledge, "correct, complete and current". A
charitable organization must provide the necessary and substantive information required by
the T3010, which is relied on by the CRA in administering the Act and made available to the
public.
By failing to provide the prescribed information, the Organization failed to file a return as
required by the Act for each year between 2008 and 2010.52 The Organization's numerous
errors in its books and accounts, discrepancies in the reporting of revenues and expenses,
and failure to report names of directors and trustees resulted in inherently unreliable returns
for each year between 2008 and 2010.
It is the CRA's position that the Organization has improperly certified that it has filed returns
that are correct and complete, and therefore has not met the requirement of the Act to file a
prescribed information return. This constitutes sufficient reason to revoke the Organization's
status as a registered charity under paragraph 168(1)(c) of the Act.
51 Ss.
149.1(14) and (15), 244(16) and 24891) "prescribed", of the Act.
52The want of prescribed information that goes to the heart of a form invalidates the form. See Bullard Estate v Canada,
2004 TCC 294 at paras 39-40.
A/33

Appendix "B"
Contents:
• Relevant Provisions of the Act

ITR APPENDIX "B"
Section 149.1 Qualified Donees
149.1(2) Revocation of registration of charitable organization
The Minister may, in the manner described in section 168, revoke the registration of a
charitable organization for any reason described in subsection 168(1) or where the
organization
(a) carries on a business that is not a related business of that charity;
(b) fails to expend in any taxation year, on charitable activities carried on by it and by
way of gifts made by it to qualified donees, amounts the total of which is at least equal
to the organization's disbursement quota for that year; or
(c) makes a disbursement by way of a gift, other than a gift made
(i) in the course of charitable activities carried on by it, or
(ii) to a donee that is a qualified donee at the time of the gift.
149.1(3) Revocation of registration of public foundation
public foundation for any reason described in subsection 168(1) or where the foundation
(a) carries on a business that is not a related business of that charity;
to the foundation's disbursement quota for that year;
(b. 1) makes a disbursement by way of a gift, other than a gift made
(ii) to a donee that is a qualified donee at the time of the gift;

(c) since June 1, 1950, acquired control of any corporation;
(d) since June 1, 1950, incurred debts, other than debts for current operating expenses,
debts incurred in connection with the purchase and sale of investments and debts
incurred in the course of administering charitable activities; or
(e) at any time within the 24 month period preceding the day on which notice is given to
the foundation by the Minister pursuant to subsection 168(1) and at a time when the
foundation was a private foundation, took any action or failed to expend amounts such
that the Minister was entitled, pursuant to subsection 149.1(4), to revoke its registration
as a private foundation.
1
149.1(4) Revocation of registration of private foundation
private foundation for any reason described in subsection 168(1) or where the
foundation
(a) carries on any business;
to the foundation's disbursement quota for that year;
(b.1) makes a disbursement by way of a gift, other than a gift made
(ii) to a donee that is a qualified donee at the time of the gift;
(c) has, in respect of a class of shares of the capital stock of a corporation, a divestment
obligation percentage at the end of any taxation year;
(d) since June 1, 1950, incurred debts, other than debts for current operating expenses,
debts incurred in connection with the purchase and sale of investments and debts
incurred in the course of administering charitable activities.
149.1(4.1) Revocation of registration of registered charity
The Minister may, in the manner described in section 168, revoke the registration
(a) of a registered charity, if it has entered into a transaction (including a gift to another
registered charity) and it may reasonably be considered that a purpose of the
transaction was to avoid or unduly delay the expenditure of amounts on charitable
activities;
(b) of a registered charity, if it may reasonably be considered that a purpose of entering
into a transaction (including the acceptance of a gift) with another registered charity to
which paragraph (a) applies was to assist the other registered charity in avoiding or
unduly delaying the expenditure of amounts on charitable activities;
(c) of a registered charity, if a false statement, within the meaning assigned by

subsection 163.2(1), was made in circumstances amounting to culpable conduct, within
the meaning assigned by that subsection, in the furnishing of information for the
purpose of obtaining registration of the charity;
(d) of a registered charity, if it has in a taxation year received a gift of property (other
than a designated gift) from another registered charity with which it does not deal at
arm's length and it has expended, before the end of the next taxation year, in addition to
its disbursement quota for each of those taxation years, an amount that is less than the
fair market value of the property, on charitable activities carried on by it or by way of
gifts made to qualified donees with which it deals at arm's length; and
2
(e) of a registered charity, if an ineligible individual is a director, trustee, officer or like
official of the charity, or controls or manages the charity, directly or indirectly, in any
manner whatever.
Section 168:
Revocation of Registration of Certain Organizations and Associations
168(1) Notice of intention to revoke registration
The Minister may, by registered mail, give notice to a person described in any of
paragraphs (a) to (c) of the definition "qualified donee" in subsection 149.1(1) that the
Minister proposes to revoke its registration if the person
(a) applies to the Minister in writing for revocation of its registration;
(b) ceases to comply with the requirements of this Act for its registration;
(c) in the case of a registered charity or registered Canadian amateur athletic

association, fails to file an information return as and when required under this Act or a
regulation;
(d) issues a receipt for a gift otherwise than in accordance with this Act and the
regulations or that contains false information;
(e) fails to comply with or contravenes any of sections 230 to 231.5; or
(f) in the case of a registered Canadian amateur athletic association, accepts a gift the
granting of which was expressly or implicitly conditional on the association making a gift
to another person, club, society or association.
168(2) Revocation of Registration
Where the Minister gives notice under subsection 168(1) to a registered charity or to a
registered Canadian amateur athletic association,
(a) if the charity or association has applied to the Minister in writing for the revocation of
its registration, the Minister shall, forthwith after the mailing of the notice, publish a copy
of the notice in the Canada Gazette, and
(b) in any other case, the Minister may, after the expiration of 30 days from the day of
mailing of the notice, or after the expiration of such extended period from the day of
mailing of the notice as the Federal Court of Appeal or a judge of that Court, on
application made at any time before the determination of any appeal pursuant to
subsection 172(3) from the giving of the notice, may fix or allow, publish a copy of the
notice in the Canada Gazette,
and on that publication of a copy of the notice, the registration of the charity or
association is revoked.
3
168(4) Objection to proposal or designation
A person may, on or before the day that is 90 days after the day on which the notice
was mailed, serve on the Minister a written notice of objection in the manner authorized
by the Minister, setting out the reasons for the objection and all the relevant facts, and
the provisions of subsections 165(1), (1.1) and (3) to (7) and sections 166, 166.1 and
166.2 apply, with any modifications that the circumstances require, as if the notice were
a notice of assessment made under section 152, if
(a) in the case of a person that is or was registered as a registered charity or is an
applicant for such registration, it objects to a notice under any of subsections (1) and
149.1(2) to (4.1), (6.3), (22) and (23);
(b) in the case of a person that is or was registered as a registered Canadian amateur
athletic association or is an applicant for such registration, it objects to a notice under
any of subsections (1) and 149.1(4.2) and (22); or
(c) in the case of a person described in any of subparagraphs (a)(i) to (v) of the
definition "qualified donee" in subsection 149.1(1), that is or was registered by the
Minister as a qualified donee or is an applicant for such registration, it objects to a
notice under any of subsections (1) and 149.1(4.3) and (22).
172(3) Appeal from refusal to register, revocation of registration, etc.

Where the Minister
(a) confirms a proposal or decision in respect of which a notice was issued under any of
subsections 149.1(4.2) and (22) and 168(1) by the Minister, to a person that is or was
registered as a registered Canadian amateur athletic association or is an applicant for
registration as a registered Canadian amateur athletic association, or does not confirm
or vacate that proposal or decision within 90 days after service of a notice of objection
by the person under subsection 168(4) in respect of that proposal or decision,
(a.1) confirms a proposal, decision or designation in respect of which a notice was
issued by the Minister to a person that is or was registered as a registered charity, or is
an applicant for registration as a registered charity, under any of subsections 149.1(2) to
(4.1), (6.3), (22) and (23) and 168(1), or does not confirm or vacate that proposal,
decision or designation within 90 days after service of a notice of objection by the
person under subsection 168(4) in respect of that proposal, decision or designation,
(a.2) confirms a proposal or decision in respect of which a notice was issued under any
of subsections 149.1(4.3), (22) and 168(1) by the Minister, to a person that is a person
described in any of subparagraphs (a)(i) to (v) of the definition "qualified donee" in
subsection 149.1(1) that is or was registered by the Minister as a qualified donee or is
an applicant for such registration, or does not confirm or vacate that proposal or
decision within 90 days after service of a notice of objection by the person under
subsection 168(4) in respect of that proposal or decision,
(b) refuses to accept for registration for the purposes of this Act any retirement savings
plan,
4
(c) refuses to accept for registration for the purposes of this Act any profit sharing plan
or revokes the registration of such a plan,
(d) [Repealed, 2011, c. 24, s. 54]
(e) refuses to accept for registration for the purposes of this Act an education savings
plan,
(e. /) sends notice under subsection 146.1(12.1) to a promoter that the Minister
proposes to revoke the registration of an education savings plan,
(f) refuses to register for the purposes of this Act any pension plan or gives notice under
subsection 147.1(11) to the administrator of a registered pension plan that the Minister
proposes to revoke its registration,
(f.1) refuses to accept an amendment to a registered pension plan,
(g) refuses to accept for registration for the purposes of this Act any retirement income
fund,
(h) refuses to accept for registration for the purposes of this Act any pooled pension
plan or gives notice under subsection 147.5(24) to the administrator of a pooled
registered pension plan that the Minister proposes to revoke its registration, or
(i) refuses to accept an amendment to a pooled registered pension plan,
the person described in paragraph (a), (a.1) or (a.2), the applicant in a case described
in paragraph (b), (e) or (g), a trustee under the plan or an employer of employees who
are beneficiaries under the plan, in a case described in paragraph (c), the promoter in a
case described in paragraph (e.1), the administrator of the plan or an employer who
participates in the plan, in a case described in paragraph (f) or (f.1), or the administrator
of the plan in a case described in paragraph (h) or (i), may appeal from the Minister's
decision, or from the giving of the notice by the Minister, to the Federal Court of Appeal.
180(1) Appeals to Federal Court of Appeal
An appeal to the Federal Court of Appeal pursuant to subsection 172(3) may be

instituted by filing a notice of appeal in the Court within 30 days from
(a) the day on which the Minister notifies a person under subsection 165(3) of the
Minister's action in respect of a notice of objection filed under subsection 168(4),
(b) [Repealed, 2011, c. 24, s. 55]
(c) the mailing of notice to the administrator of the registered pension plan under
subsection 147.1(11),
(c.1) the sending of a notice to a promoter of a registered education savings plan under
subsection 146.1(12.1),
(c.2) the mailing of notice to the administrator of the pooled registered pension plan
under subsection 147.5(24), or
5
(d) the time the decision of the Minister to refuse the application for acceptance of the
amendment to the registered pension plan or pooled registered pension plan was
mailed, or otherwise communicated in writing, by the Minister to any person,
as the case may be, or within such further time as the Court of Appeal or a judge
thereof may, either before or after the expiration of those 30 days, fix or allow.
Section 188: Revocation tax
188(1) Deemed year-end on notice of revocation

If on a particular day the Minister issues a notice of intention to revoke the registration of
a taxpayer as a registered charity under any of subsections 149.1(2) to (4.1) and 168(1)
or it is determined, under subsection 7(1) of the Charities Registration (Security
Information) Act, that a certificate served in respect of the charity under subsection 5(1)
of that Act is reasonable on the basis of information and evidence available,
(a) the taxation year of the charity that would otherwise have included that day is
deemed to end at the end of that day;
(b) a new taxation year of the charity is deemed to begin immediately after that day; and
(c) for the purpose of determining the charity's fiscal period after that day, the charity is
deemed not to have established a fiscal period before that day.
188(1.1) Revocation tax

A charity referred to in subsection (1) is liable to a tax, for its taxation year that is
deemed to have ended, equal to the amount determined by the formula
A-B
where
A
is the total of all amounts, each of which is
(a) the fair market value of a property of the charity at the end of that taxation year,
(b) the amount of an appropriation (within the meaning assigned by subsection (2)) in
respect of a property transferred to another person in the 120-day period that ended at
the end of that taxation year, or
(c) the income of the charity for its winding-up period, including gifts received by the
charity in that period from any source and any income that would be computed under
section 3 as if that period were a taxation year; and
6
is the total of all amounts (other than the amount of an expenditure in respect of which a
deduction has been made in computing income for the winding-up period under
paragraph (c) of the description of A), each of which is
(a) a debt of the charity that is outstanding at the end of that taxation year,
(b) an expenditure made by the charity during the winding-up period on charitable
activities carried on by it, or
(c) an amount in respect of a property transferred by the charity during the winding-up
period and not later than the latter of one year from the end of the taxation year and the
day, if any, referred to in paragraph (1.2)(c), to a person that was at the time of the
transfer an eligible donee in respect of the charity, equal to the amount, if any, by which
the fair market value of the property, when transferred, exceeds the consideration given
by the person for the transfer.
188(1.2) Winding-up period
In this Part, the winding-up period of a charity is the period that begins immediately after
the day on which the Minister issues a notice of intention to revoke the registration of a
taxpayer as a registered charity under any of subsections 149.1(2) to (4.1) and 168(1)
(or, if earlier, immediately after the day on which it is determined, under subsection 7(1)
of the Charities Registration (Security Information) Act, that a certificate served in
respect of the charity under subsection 5(1) of that Act is reasonable on the basis of
information and evidence available), and that ends on the day that is the latest of
(a) the day, if any, on which the charity files a return under subsection 189(6.1) for the
taxation year deemed by subsection (1) to have ended, but not later than the day on
which the charity is required to file that return,
(b) the day on which the Minister last issues a notice of assessment of tax payable
under subsection (1.1) for that taxation year by the charity, and
(c) if the charity has filed a notice of objection or appeal in respect of that assessment,
the day on which the Minister may take a collection action under section 225.1 in
respect of that tax payable.
188(1.3) Eligible donee
In this Part, an eligible donee in respect of a particular charity is a registered charity

(a) of which more than 50% of the members of the board of directors or trustees of the
registered charity deal at arm's length with each member of the board of directors or
trustees of the particular charity;
(b) that is not the subject of a suspension under subsection 188.2(1);
(c) that has no unpaid liabilities under this Act or under the Excise Tax Act;
7
(d) that has filed all information returns required by subsection 149.1(14); and
(e) that is not the subject of a certificate under subsection 5(1) of the Charities
Registration (Security Information) Act or, if it is the subject of such a certificate, the
certificate has been determined under subsection 7(1) of that Act not to be reasonable.
188(2) Shared liability — revocation tax

A person who, after the time that is 120 days before the end of the taxation year of a
charity that is deemed by subsection (1) to have ended, receives property from the
charity, is jointly and severally, or solidarily, liable with the charity for the tax payable
under subsection (1.1) by the charity for that taxation year for an amount not exceeding
the total of all appropriations, each of which is the amount by which the fair market
value of such a property at the time it was so received by the person exceeds the
consideration given by the person in respect of the property.
188(2.1) Non-application of revocation tax

Subsections (1) and (1.1) do not apply to a charity in respect of a notice of intention to
revoke given under any of subsections 149.1(2) to (4.1) and 168(1) if the Minister
abandons the intention and so notifies the charity or if
(a) within the one-year period that begins immediately after the taxation year of the
charity otherwise deemed by subsection (1) to have ended, the Minister has registered
the charity as a charitable organization, private foundation or public foundation; and
(b) the charity has, before the time that the Minister has so registered the charity,
(i) paid all amounts, each of which is an amount for which the charity is liable
under this Act (other than subsection (1.1)) or the Excise Tax Act in respect of
taxes, penalties and interest, and
(ii) filed all information returns required by or under this Act to be filed on or
before that time.
188(3) Transfer of property tax

Where, as a result of a transaction or series of transactions, property owned by a
registered charity that is a charitable foundation and having a net value greater than
50% of the net asset amount of the charitable foundation immediately before the
transaction or series of transactions, as the case may be, is transferred before the end
of a taxation year, directly or indirectly, to one or more charitable organizations and it
may reasonably be considered that the main purpose of the transfer is to effect a
reduction in the disbursement quota of the foundation, the foundation shall pay a tax
under this Part for the year equal to the amount by which 25% of the net value of that
property determined as of the day of its transfer exceeds the total of all amounts each of
which is its tax payable under this subsection for a preceding taxation year in respect of
the transaction or series of transactions.
8
188(3.1) Non-application of subsection (3)
Subsection (3) does not apply to a transfer that is a gift to which subsection 188.1(11) or
(12) applies
188(4) Transfer of property tax
If property has been transferred to a charitable organization in circumstances described

in subsection (3) and it may reasonably be considered that the organization acted in
concert with a charitable foundation for the purpose of reducing the disbursement quota
of the foundation, the organization is jointly and severally, or solidarily, liable with the
foundation for the tax imposed on the foundation by that subsection in an amount not
exceeding the net value of the property.
188(5) Definitions
In this section,
"net asset amount"
montant de l'actif net »
"net asset amount" of a charitable foundation at any time means the amount determined
by the formula
A-B
where
A
is the fair market value at that time of all the property owned by the foundation at that
time, and
B
is the total of all amounts each of which is the amount of a debt owing by or any other
obligation of the foundation at that time;
"net value"
« valeur nette »
"net value" of property owned by a charitable foundation, as of the day of its transfer,
means the amount determined by the formula
A-B
where
9
is the fair market value of the property on that day, and
B
is the amount of any consideration given to the foundation for the transfer.
189(6) Taxpayer to file return and pay tax

Every taxpayer who is liable to pay tax under this Part (except a charity that is liable to
pay tax under section 188(1)) for a taxation year shall, on or before the day on or before
which the taxpayer is, or would be if tax were payable by the taxpayer under Part I for
the year, required to file a return of income or an information return under Part I for the
year,
(a) file with the Minister a return for the year in prescribed form and containing
prescribed information, without notice or demand therefor;
(b) estimate in the return the amount of tax payable by the taxpayer under this Part for
the year; and
(c) pay to the Receiver General the amount of tax payable by the taxpayer under this
Part for the year.
189(6.1) Revoked charity to file returns

Every taxpayer who is liable to pay tax under subsection 188(1.1) for a taxation year
shall, on or before the day that is one year from the end of the taxation year, and
without notice or demand,
(a) file with the Minister
(i) a return for the taxation year, in prescribed form and containing prescribed
information, and
(ii) both an information return and a public information return for the taxation
year, each in the form prescribed for the purpose of subsection 149.1(14); and
(b) estimate in the return referred to in subparagraph (a)(i) the amount of tax payable by
the taxpayer under subsection 188(1.1) for the taxation year; and
(c) pay to the Receiver General the amount of tax payable by the taxpayer under
subsection 188(1.1) for the taxation year.
189 (6.2) Reduction of revocation tax liability

If the Minister has, during the one-year period beginning immediately after the end of a
taxation year of a person, assessed the person in respect of the person's liability for tax
under subsection 188(1.1) for that taxation year, has not after that period reassessed
the tax liability of the person, and that liability exceeds $1,000, that liability is, at any
particular time, reduced by the total of
10
(a) the amount, if any, by which
(i) the total of all amounts, each of which is an expenditure made by the charity,
on charitable activities carried on by it, before the particular time and during the
period (referred to in this subsection as the "post-assessment period") that
begins immediately after a notice of the latest such assessment was sent and
ends at the end of the one-year period
exceeds
(ii) the income of the charity for the post-assessment period, including gifts
received by the charity in that period from any source and any income that would
be computed under section 3 if that period were a taxation year, and
(b) all amounts, each of which is an amount, in respect of a property transferred by the
charity before the particular time and during the post-assessment period to a person
that was at the time of the transfer an eligible donee in respect of the charity, equal to
the amount, if any, by which the fair market value of the property, when transferred,
exceeds the consideration given by the person for the transfer.
189(6.3) Reduction of liability for penalties
If the Minister has assessed a particular person in respect of the particular person's
liability for penalties under section 188.1 for a taxation year, and that liability exceeds
$1,000, that liability is, at any particular time, reduced by the total of all amounts, each
of which is an amount, in respect of a property transferred by the particular person after
the day on which the Minister first assessed that liability and before the particular time to
another person that was at the time of the transfer an eligible donee in respect of the
particular person, equal to the amount, if any, by which the fair market value of the
property, when transferred, exceeds the total of
(a) the consideration given by the other person for the transfer, and
(b) the part of the amount in respect of the transfer that has resulted in a reduction of an
amount otherwise payable under subsection 188(1.1).
189 (7) Minister may assess
Without limiting the authority of the Minister to revoke the registration of a registered
charity or registered Canadian amateur athletic association, the Minister may also at
any time assess a taxpayer in respect of any amount that a taxpayer is liable to pay
under this Part.
11

Appendix "C"
Contents:
• CRA letters dated April 15, 2013 and July 21, 2008
• Organization's representations dated August 30, 2013
I 411 Canada Revenue Agence du revenu
Agency du Canada
REGISTERED MAIL
Islamic Ahlul Bayt Assembly of Canada BN: 140610262

45 Harris Way
Thornhill, Ontario File No: 0983205
L3T 5A6
Attn: Mr. Ghulam Sajan
April 15, 2013
Dear Mr. Sajan,
Re: Audit of Registered Charity: Islamic Ahlul Bayt Assembly of Canada
This letter is further to our audit of the books and records of the Islamic Ahlul
Bayt Assembly of Canada (the Assembly) by the Canada Revenue Agency (CRA).
The audit relates to the operations of the registered charity for the period from
January 1, 2008 to December 31, 2010. A review of the Assembly's past operations
has also been conducted with respect to property.
The CRA has now completed its review of the Assembly's operations, and has
identified specific areas of non-compliance with core requirements of the Income Tax
Act (Act) and its Regulations for maintaining charitable status in the following areas:
AREAS OF NON-COMPLIANCE
Issue Reference(s)
1. Ceased to comply with the requirements of the Act 149.1(1), and 168(1)(b)
for its continued registration.
2. Failed to comply with or contravened any of 230(2), 230(4), 231.1(1),
sections 230 to 231.5 of the Act. and168(1)(e)
3. Issued a receipt for a gift or donation otherwise 168(1)(d), 188.1(9), Regulation
than in accordance with the Act and the regulation 3500, and Regulation 3501
or that contains false information.
4. Failed to file an information return as required 149.1(14), and 168(1)(c)
under the Act.
R350 E (99) Cariacri 100-17-1

The purpose of this letter is to describe the areas of non-compliance identified
during the audit as they relate to the legislative provisions applicable to registered
charities in order to provide the Assembly with an opportunity to respond to our
concerns, provide any additional information regarding the issues outlined in this
letter, and submit a written representation accompanied by any relevant
documentation, as to why the Assembly's charitable registered status should not be
revoked.
1. Ceased to comply with the requirements of the Act for its continued
registration (Paragraph 168(1)(b) of the Act)
Subsection 149.1(1) of the Act requires that a charitable organization devote

all of its resources to "charitable activities carried on by the organization itself'.
Generally speaking, in order to maintain charitable registration, an organization must
demonstrate both that it is constituted exclusively for charitable objects, and that it
devotes its resources to charitable activities in furtherance thereof.
As confirmed by the Supreme Court of Canada in its decision in Vancouver

Society of Immigrant and Visible Minority Women v. Minister of National Revenue
(MN. R.), the determination as to whether an organization qualifies as a charity is, in
essence, a two-part test:
1) the objects of the organization must be exclusively and legally

charitable under common law, and must define the scope of the
activities engaged in by the organization; and
2) all of the organization's resources must be devoted to these activities.
In addition, for an organization to be considered charitable under the Act, it

must be found to operate for public benefit. The determination of the public benefit
requirement also involves the application of a two-part test:
1) The first part of the test generally requires that a tangible or

objectively measurable and socially useful benefit be conferred,
directly or indirectly.2
2) The second part of the test requires that the benefit be delivered to the
public as a whole, or to a sufficient section of the public. 3
1 Vancouver Society of Immigrant & Visible Minority Women v. Minister of National Revenue, [1999] 1 S.C.R. 10,
(paragraph 152, 154, 156).
2 See generally, Vancouver Society of Immigrant & Visible Minority Women v. Minister of National Revenue,
[1999] 1 S.C.R. 10, at para. 41, and Gilmour v. Coats et al, [1949] 1 All E.R. 848.
3 See CRA's Policy Statement CPS-024, Guidelines for Registering a Charity: Meeting the Public Benefit Test, for
further information.
100-17-2
To summarize, the CRA must be satisfied that the objects being pursued are
charitable in law, that there is a clear relationship and link between the activities and
the objects, and that the activities themselves do no fall outside the bounds of what
can be considered charitable in the legal sense. In conducting this review, we are
obliged to take into account, and to draw reasonable inferences from, all of the
relevant information that may be available to us.
Our findings regarding the Assembly's non-compliance with these

requirements are dealt with below under the headings:
1.1 Failure to demonstrate that it is constituted for exclusively charitable

objects; and
1.2 Failure to demonstrate that its resources are devoted to charitable

activities carried out in furtherance of exclusively charitable objects.
1.1 Failure to demonstrate that it is constituted for exclusively charitable

objects
Among the various aspects that an audit may examine is whether a charity
advances objects which are charitable at law. Maintaining charitable registration
demands that a charity continue to meet the existing statutory and common law
requirements associated with registered status. Accordingly, although a charity's
formal objects may have been accepted at the time of its registration, it is possible
they may be determined to no longer qualify as charitable at law in the course of a
subsequent audit. In addition, it is possible that the activities and focus of an
organization may have changed since its initial registration. Such changes may
adversely affect the organization's present day eligibility for continued registration.
Since the terms "charity" and "charitable" are not defined in the Act it is
necessary to refer to the common law to determine if a particular object is charitable.
The courts have recognized as charitable those objects that (1) relieve poverty, (2)
advance education, (3) advance religion, or (4) benefit the community in a way that
the law regards as charitable. The fourth category identifies an additional group of
specific court-recognized objects. It does not mean that all objects that might be
considered beneficial to the public qualify as charitable at law.4
It is a basic and important principle of charity law that to be charitable, the

stated objects of an organization be expressed as clearly as possible, in precise as
opposed to broad terms, to ensure that the organization does not have the legal
"These four broad categories of charitable objects were outlined by Lord Macnaghten in Commissioners for
Special Purposes of the Income Tax v. Pemsel, [1891] A.C. 531 (P.C.) (Pemsel). The classification approach was
first explicitly approved of by the Supreme Court of Canada in Guaranty Trust Co. of Canada v. Minister of
National Revenue, [19671 S.C.R. 133, and confirmed in Vancouver Society, ibid note 1.
100-17-3
capacity to engage in non-charitable activities. Where there is any doubt as to whether
an object is charitable, or where there is a mix of charitable and non-charitable
objects, the courts have determined that an organization should not be registered as a
charity.5
The Assembly was registered as a charitable organization with an effective

date of January 1, 1994 as the Ahlul Bayt Assembly of North America. At the time, it
was governed by an August 24, 1993 Constitution. Subsequently, the Assembly
incorporated and provided the CRA with a copy of its Letters Patent, issued under the
provisions of the Canada Corporations Act and dated March 2, 2011.6 As contained
in this document, the Assembly's formal objects are:
(a) To promote the teachings of Islam according to Shia Ithna-asheri faith;
(b) To safeguard and further the religious, moral, social, and educational
interests of the followers of the Shia Ithna-asheri faith;
(c) To create, cultivate and maintain goodwill, amity and understanding

between the followers of the faith in particular and humanity in general;
(d) To encourage the propagation of the Shia Ithna-asheri faith;
(e) To accept and/or manage charitable trusts and/or bequests from any
individual or organization in accordance with the terms of such trusts and or
bequests so long as terms are acceptable to ASSEMBLY and the trust or
bequests fall within the general Aims and Objectives of the ASSEMBLY;
(1) To accept donations, gifts, legacies and bequests for use in promoting the
objects and carrying on the activities of the ASSEMBLY;
(g) To create, receive, raise and invest funds and to buy, sell, build, own, and
let properties in furtherance of the Aims and Objectives,.
(h) To remain within the bounds of the Sharia of the Shia Ithna-asheri faith in
all its activities and undertakings;
(z) To collaborate and co-operate as appropriate with other religious

organizations; and
5 In Earth Fund v. Canada (MAR), 2002 FCA 498 at para. 20, 57 D.T.C. 5016, the Court held that "[aJs a
matter of law, the appellant is not entitled to registration as a charity unless all of the appellant's corporate
objects and activities are exclusively charitable."
6 We note that the objects found in its March 2, 2011 Letters Patent are identical to those contained in the
Assembly's 1993 Constitution.
100-17-4
(j) To undertake all such activities which are of benefit to the followers of the
Shia Ithna-asheri faith.
When the CRA advised the Assembly of its charitable registration on

March 15, 1994, it advised that registration was granted "on the understanding that
objects a) and d) and particularly h) of the Constitution are the primary objectives of
the Organization and that all other purposes and activities are carried out in order to
propagate and advance the Shia Ithna-asheri faith."
It remains our view that objects (a) and (d) would qualify as charitable under
the category of advancement of religion, providing that its activities serve primarily
to advance religion.7 The CRA does not consider objects (e), (f), (g) and (h) as
charitable objects, but rather as power clauses. However, they could be considered
acceptable for purposes of registration if the activities pursued in this regard are
incidental and ancillary and undertaken solely as a means by which the charity fulfills
its otherwise charitable objects.
Object (c), "To create, cultivate and maintain goodwill, amity and
understanding between the followers of the faith in particular and humanity in
general", is not only broad and vague, but the courts have not considered objects that
promote brotherhood, mutual aid, and fraternal ties between individuals and/or groups
that share a common connection to be analogous to the advancement of religion in the
legal sense; nor have such objects been considered to fall under the fourth category of
charity.8
We also consider objects (b), (i), and (j) to be broadly worded and appear to
extend beyond what is generally understood by the courts as the advancement of
religion. These objects place no restrictions on the programs that the Assembly might
conduct while pursuing these objects, thus leaving open the possibility that the
Assembly could undertake activities that may not be exclusively charitable.9
Fuaran Foundation v. C.C.R.A., [2004] FCA 181. An organization would qualify for registration under this
category only if its activities served primarily to advance religion and were not directed to subsidiary or secondary
aims not in themselves religious or otherwise charitable. The courts have looked for a targeted attempt to promote
an identified religion or to sustain and increase a religious belief, with a structured program relating to religious
advancement.
8 See Anglo-Swedish Society v. C.L. R. (1931) T.C. 34 (K.B.D.) as cited in Toronto Volgograd Committee v.
M.N.R., 88 DTC 6192 (F.C.A.).
9 We would note objects (b) and (i) were also contained in a draft version of the Assembly's amended Constitution
dated December 31, 2006 submitted to the CRA for consideration in March 2007. In our letter of July 21, 2008,
we advised that we considered these objects to be broad and vague and extend beyond what is generally
considered by the courts to be advancement of religion. Our letter also raised concerns with respect to the
Assembly's current object (j), as pertained to an object found on the Assembly's website at
http://islamabc.org/aboutl.htm (accessed February 20, 2008). Despite these concerns, and the Assembly's
apparent acknowledgement of them in its October 18, 2008 letter, the objects were formally adopted by the
Assembly in its Letters Patent of March 2, 2011. Please refer to Appendix B for a copy of our July 21, 2008
letter.
100-17-5
Based on the above observations, the CRA cannot determine that the
Assembly is established for objects that are exclusively charitable, and for this reason
alone, ceases to comply with the requirements of the Act for its continued
registration.
1.2 Failure to demonstrate that its resources are devoted to charitable

activities carried out in furtherance of exclusively charitable objects
As well as considering an organization's objects, our review of whether an

organization meets the legal definition of a charitable organization also examines the
nature and extent of the activities undertaken to advance its formal objects. To satisfy
the test of whether an organization is charitable at law, the CRA must determine that
the activities undertaken by an organization are consistent with the wording of its
objects, that there is a clear relationship and link between the activities and the
objects, and that the activities themselves do not fall outside the bounds of what can
be considered charitable in the legal sense.°
Religious advancement in the charitable context means manifesting,

promoting, sustaining and increasing belief in the religion's three key attributes,
namely: (1) faith in a "higher unseen power" such as a God, Supreme Being or Entity;
(2) worship or reverence; and (3) a particular and comprehensive system of doctrines
and observances.11
To advance a religion means to promote it, spread its message and take some
positive steps to sustain and increase its associated religious beliefs.12 An
organization would qualify for registration under this category only if its activities
served primarily to advance religion and were not directed to subsidiary or secondary
aims not in themselves religious or otherwise charitable.
As detailed in section 1.1 above, to be eligible for registration under the Act,
Canadian law requires that an organization demonstrate that it is constituted
exclusively for charitable objects, and that it devotes its resources to its own
10 In Vancouver Society, the Supreme Court stated as follows: But the inquiry cannot stop there. In Guaranty
Trust, supra at p.144, this Court expressed the view that the question of whether an organization was constituted
exclusively for charitable purposes cannot be determined solely by reference to the objects and purposes for which
it was originally established. In other words, as Lord Denning put it in Institution of Mechanical Engineers v.
Cane, [1961] A.C. 696 (H.L.), at p. 723, the real question is, "for what purpose is the Society at present
instituted?".
See also A.Y.S.A. Amateur Youth Soccer Association v. Canada (Revenue Agency) [2007] 3 S.C.R. 217 at para.
42., where the Supreme Court of Canada stated that the CRA is "... entitled and indeed obliged to look at the
substance of the purposes and activities of an applicant for registered charity status."
Fuaran Foundation v. C.C.RA., 2004 FCA 181 (Fuaran Foundation).
12 Keren Kayemeth Le Jisroel v. IRC, (1931) Vol X ATC, affirmed [1931] 2 KB 465 (C.A.), affirmed [1932] AC
650 (H.L.) (Keren Kayemeth); United Grand Lodge v. Holborn Borough Council, [1957] 1 WLR 1080; Fuaran
Foundation v. C.CRA., 2004 FCA 181 (Fuaran Foundation).
100-17-6
charitable activities carried on in furtherance thereof." A registered charity can only
use its resources (for example, funds, personnel, and property) in two ways, whether
inside or outside Canada:
• on its own activities (those that are carried out under the charity's direction,
control and supervision, and for which it can account for any funds
expended); and
• on gifts to qualified donees."
A charity typically uses an intermediary when unable to carry out its own
activities through its staff. Where a charity carries on its activities through an
intermediary, it must still direct and control the use of its resources. The charity must
be the body that makes decisions and sets parameters. To allow the CRA to verify
that all of the charity's resources have been used for its own activities, a charity must
maintain a record of steps taken to direct and control the use of its resources as part of
its books and records.15
A registered charity is permitted to undertake a limited amount of activity that

is ancillary (those that are subordinate or secondary to an organization's charitable
activities) and incidental (those that are not essential to the charity's operation and are
only conducted on an occasional basis) to the charity's charitable objects. As such,
these activities should receive only a minor proportion of a charity's time and
resources.
Problems arise when activities move beyond being merely a means to an end
(ancillary and incidental) and become rather an end in and of themselves. Where an
activity is, or becomes, a substantial focus of an organization, it may no longer
advance a stated object. Rather, the activity may be in support of a separate or
collateral unstated object — or form a separate or collateral object in and of itself.16
13 Vancouver Society, ibid note 1 at para. 159 per lacobucci J. We would note that this requirement is subject to
exceptions relating to administrative, fundraising and political activities that are conducted within legal
parameters.
14 The term qualified donee is defined in subsection 149.1(1) of the Act. See also Charity Connection No. 11 -
January 2012 - Special Edition: Budget 2011. Under the Act, a qualified donee is an organization that can issue
official donation receipts for gifts that individuals and corporations make to it, and that can receive gifts from
registered charities. As of January 1, 2012, most qualified donees have to be listed and are subject to some new
requirements. The following groups of organizations are qualified donees: Registered charities; Registered
Canadian amateur athletic associations; Her Majesty in right of Canada or a province; the United Nations and its
agencies; Listed Canadian municipalities; Listed municipal and public bodies performing a function of
government in Canada; Listed prescribed universities outside Canada; Listed charitable organizations outside
Canada that have received a gift from Her Majesty in right of Canada; and Listed low-cost housing corporations
for the aged.
15 Sec CRA Guidance Canadian Registered Charities Carrying Out Activities Outside Canada.
16 Vancouver Society of Immigrant and Visible Minority Women v Minister of National Revenue [1999) 1 S.C.R.
10., at paragraph 156, where Mr. Justice lacobucci, speaking for the majority, cite with approval the comments of
Denning L.J. in British Launderers' Research Association v. Borough of Hendon Rating Authority [19491 1 K.B.
7
100-17-7
1.2.1 Analysis of the Assembly's activities for the period under review
When the Assembly applied for registration, it informed the CRA on its
application to register as a charity that it would organize Islamic conferences, publish
a religious magazine, and translate and publish books on Islam. However, our audit
findings indicate that the Assembly has only organized two conferences since
obtaining registration in 1994, last published the Right Path magazine in 1996, and
there is no indication that it has engaged in translation services.
According to the CRA's audit findings, the Assembly has focused very little
of its resources on undertaking activities in furtherance of its stated objects. Rather, it
appears that a significant portion of the activities undertaken by the Assembly for the
period under review are not charitable as that term is understood under Canadian
law.I7 Further, as demonstrated in the table below, the amounts expensed on these
activities go well beyond what the CRA would consider ancillary and incidental to a
charitable activity.
Percentage of Expenses by Total Expenses's

2008-12-31 2009-12-31 2010-12-31
Non-Charitable
Property and Mortgage Interest 51.06% 43.23% 52.13%
Gifts to Non-Qualified Donees (Education Expense) 23.62%
Eid Dinner and Video 12.60% 13.90% 27.09%
Festival of Lights 16.67%
80.33% 80.76% 79.22%
Charitable Programs 9.11% 9.02% 11.67%

Administrative and Other 10.56% 10.22% 9.11%
19.67% 19.24% 20.78%
462 (C.A. at pp. 467-68, as applied by the Supreme Court of Canada in Guaranty Trust Company of Canada v.
Minister of National Revenue [1967] S.C.R. 133.
17 The Assembly's Eid prayer, Imam Mandi and Imam Hussein day events are charitable which account for 9.11%
to 11.67% of expenses, as noted in the Percentage of Expenses by Total Expenses table.
18 Percentages have been adjusted to reflect:
1. 2008 — Calculation Error of approximately $15,000 overstatement as a mortgage interest expense
(see Section 4 of this letter)
2. 2009 — Gift of $12,140 to represented as an education expense (see Section 3
of this letter)
3. 2010— Payment to Mr. Hosseini Nassab recorded as a prior year expense in the amount of $10,580
(see Section 4 of this letter)
8
100-17-8
a. Eidul-Fitr Celebration Dinner
The information and documentation provided in support of the Eidul-Fitr

celebration dinner indicates that this is the Assembly's primary activity for the entire
period under review.
It is the CRA's understanding that the Eidul-Fitr celebration comes at the

completion of the religious obligation of fasting during the month of Ramadan.
Promoting the observance of Ramadan in and of itself is clearly advancing religion,
and an Eidul-Fitr celebration could qualify as ancillary and incidental to the
observation of Ramadan. However, based on our analysis, it is unclear that the
primary purpose of this event is to advance religion in a charitable sense. As
celebrated by the Assembly, the occasion appears to have adopted a primarily social19
rather than religious objective.
Our opinion is based on the following:
• The information/documentation reviewed does not demonstrate how this

activity's primary purpose is to advance religion, for example:
o The video provided by the Assembly in support of the 2010 Eid
Dinner20 indicates that this event was used to honor a
for his contributions in the community;
o The agenda for this event indicates that the purpose was to hand out
awards and recognitions, and not the celebration of a religious
obligation.2I
• The Assembly's celebrations take place two and a half weeks after the
recognized religious dates for which Eidul-Fitr celebrations typically occur,
that is after the fasting month of Ramadan;22
19 CSP-S05: Social Activities, in and of themselves, are not charitable at law.

20
September 19, 2010.
21 The flyers do provide for a recitation of the Holy Quran. In this regard, it is our opinion that this is very similar
to a blessing before a meal, but not sufficient to qualify the event itself as advancing religion. The portion of time
devoted to entertainment/awards versus a recitation would indicate that the emphasis of the evening is social and
not religious. Also the sample agenda, "Notes for Yasmin," provide a single line item "recitation of Quran" and
nine additional line items that do not refer to any other religious activity, but rather, introduction of guests and
handing out of awards.
22 Our research indicates that Eidul-Fitr took place on the following dates. September 30 to October 1, 2008;
September 18 to 20, 2009; and September 9 to 10, 2010, as per the Fiqh Council of North America. The program
flyers for the Assembly's Eidul-Fitr celebrations take place on October 19, 2008, October 4, 2009 and September
19, 2010.
9
100-17-9
• The event itself has been established to be "fun" and "not religious", as
represented by the Assembly during the audit visit;23
• The minutes of meetings provided by the Assembly do not provide any details
to support a religious activity.
Based on our observation, the CRA was unable to associate this activity to a
charitable object, and further found that the resources devoted to this activity were in
excess of what could be considered an incidental expenditure.
b. Festival of Lights
Our research indicates that the Winter Festival of Lights24 is an ongoing

tourist attraction sponsored and managed by the City of Niagara Falls. The festival
began in 1983 and has grown to include 125 animated displays.25 26 The Assembly
has represented that it provided funds for one such light display, the Pilgrimage to
Mecca. Our audit found that the Assembly devoted $9,148, or 16.6 percent of its total
expenditures, in 2008 to finance this light display.
The CRA has not been provided with any documentation or information to
demonstrate how this activity furthered the Assembly's formal objects or how the
light display advanced religion in the charitable sense. In this regard, the light display
is part of a tourist attraction and the activities undertaken in this regard do not appear
to have represented a targeted attempt to advance religion in the charitable sense. 27
In addition, our review of the information and documentation available to the

CRA, suggests that this was not the Assembly's "own activity". Rather, it appears
that the Assembly simply co-fimded28 a light display at the request of a 29
without demonstrating any direction or control over the activity. Our opinion is based
on the following:
23 The Assembly used to invite speakers to attend these events; however, the attendees told the Assembly that they
were "here for fun and not there to be lectured" so they stopped inviting speakers. Politicians are invited to attend
and they usually greet the attendees. In the past, the Assembly has had a comedy event in which each community
representative (Pakistani, Iranian) made jokes about themselves on stage.
24 Also referred to as the Festival of Lights by the Assembly.
25 The majority of the Festival's illuminations can be found along the 5 kilometer Niagara Parkway lighting area
known as the Niagara Parks Winter Wonderland.
26 http://www.wfol.com/history.html & httn://www.wfotcom/abouthtml (accessed 2012-04-25)
27 Fuaran Foundation v. Canada (Customs and Revenue Agency) (2004 FCA 181), 2004-05-0415] "In effect,
what, the Appellant proposes is to simply make available a place where religious thought may be pursued. There is
no targeted attempt to promote religion or to take positive steps to sustain and increase religious belief. There
seems to be no structured program relating to advancement of religion and the focus in the Appellant's advertising
is not just upon religion but also on personal enjoyment and quiet retreat..."
25 http://www.wfol.com/religions-displays.html also identifies Hamdani Foundation as a sponsor.
24 Our records indicate that the Assembly never reported as a director, trustee or like official of the
Assembly.
10
100-17-10
• initiated the project with a letter to the City Council of Niagara
Falls, which was received by the Mayor's Office on April 18, 2007,
suggesting to the City Council to "add a Muslim feature to the Festival of
Lights";
• A letter dated October 9, 2008, addressed to advising of the
"Islamic Display — Receipt of Funds" with respect to the "Islamic Display
Funding Contract dated September 5, 2008". The Assembly is not noted as the
contract holder. In this regard, we note that the Assembly did not provide a
copy of this contract to support the activity during the audit. We also note that
the letter provided for three payments: $7,000 , $4,851
Islamic Ahlul Bayt Assembly of Canada, and $4,755 Ahlul Bait Assembly of
North America;30
• The Festival of Light's General Manager, , extended an
invitation to and three other guests to the Sponsorship Gala
Reception in a letter dated October 10, 2008. There is no mention of the
Assembly or thanks for their participation;
• The Assembly did not provide any documentation to indicate that it had any
meaningful input in the display itself, and the Assembly's meeting minutes do
not shed light on the Assembly's role in support of this activity, or why it
chose to fund this project.
It is therefore our view that the Assembly's funding of the light display failed
to demonstrate that its resources were devoted to a charitable activity or an activity
that it carried out in furtherance of a charitable object.
c. 2008 Conference
On May 18, 2008, the Assembly and the Islamic Shia Ithna-asheri Jamaat of
Toronto (ISIJ) hosted a conference to "discuss the issues that affect Shias in Canada".
According to the conference agenda provided, the conference was held from 9:00 AM
to 5:30 PM.
Although this activity could potentially be considered advancing one of the

Assembly's objects, the CRA has not been provided with sufficient documentation to
arrive at this conclusion.3I For example, no documentation was provided as to the
activities that occurred from 10:05 AM to 2:30 PM, which represents the majority of
the conference. In addition, the Assembly did not provide documentation related to
30 It is noted that the last two payments were identified as paid with a hand written reference to chq 222 and chq
199 and these amounts can be traced back to the Assembly's records.
31 Pursuant to subsection 230(2) of the Act, every registered charity shall keep records and books... containing:
(a) Information in such form as will enable the Minister to determine whether there are any grounds for revocation
of its registration under the Act.
11
100-17-11
the Media workshop and the meeting minutes lack any detail in this regard. The main
meeting that was set up to discuss the conference was not recorded and/or provided.32
Furthermore, we have concerns regarding the Matchmaking workshop where

discussions appear to be encouraging the marriage of minors who fall below the age
requirements as set out in the Marriage Act of Ontario,33 which is contrary to
Canadian law and therefore would fail to meet the public benefit test. 34
The CRA is unable to determine whether or not the conference could be

considered a charitable activity based on the information that was provided.
d. Education Expense / Scholarship
As recorded in its 2009 financial statements, the Assembly gifted $12,140 to

the . The Assembly notified the CRA that the purpose of the
funds was to help pay the tuition fees for those students who could not afford it. The
CRA has examined whether this expense would qualify as a charitable program or a
gift to a qualified donee.
Generally speaking, scholarships could be considered charitable under

advancement of education; however a charity engaged in such an activity must be
able to demonstrate that they have maintained direction and control and that they
have met the public benefit test over this activity. In this regard, we would require
documentation to support this program, such as a detailed description of its objective,
the criteria and process used to select the scholarship recipients, and details as to how
the funds are dispersed.35
Notwithstanding the fact that the provision of scholarships does not apparently
further any of the charitable objects for which the Assembly is currently registered,36
we have not been provided with sufficient documentation to determine whether it met
32 An email sent 2008-04-06, from stating: "In the name of Allah. there will be a meeting to
organize the conf of Ahlul Bayt Assembly on Friday April 1 1th, at 6:30PM at Mandieh Islamic Center at 1041
McNicoll St, at Victoria Park and McNicoll".
33 Marriage Act, R.S.O. 1990, Chapter M.3: 5. (2) "No person shall issue a license to a minor, or solemnize the
marriage of a minor under the authority of the publication of banns, except where the minor is of the age of sixteen
years or more and has the consent in writing of both parents in the form prescribed by the regulations, R.S.O.
1990, c. M.3, s. 5 (2)."
34 From the documentation provided, we note the following: "We should de-stigmatize taboos of early marriages
(having option of nikah for 14+ yrs young adults)".
35 Specifically, the CRA would need to know: what the organization is trying to achieve in awarding the
scholarship; who is eligible to receive a scholarship, and why (i.e. what are the criteria for selecting candidates);
how and where will the scholarship program be advertised; and who chooses the winning candidates (e.g. will it
be the organization and/or outside committee; if it's an outside committee, will the organization be represented on
the committee?); the amounts that will be awarded; whether there are any limitations on the scholarships with
respect to how they are to be used; and whether there are any limitations with respect to the relationship of the
recipient(s) to the applicant.
36 We would comment that the Assembly is not constituted to manage a scholarship program.
12
100-17-12
lOr
the public benefit test or that it could be considered charitable as that term is
understood under Canadian law.
Further, there is no evidence that the Assembly maintained direction and

control over the use of the funds it provided to the . The
is not a registered charity and therefore this would be considered a
gift to a non-qualified donee.37 However, it appears that the Assembly participated in
a third-party receipting scheme with the and
misrepresented these funds as an education expense on its annual information returns
(T3010).39
e. Holding Property
As noted above, a charity is required to devote all its resources to further its
charitable objects. With respect to property (land and buildings), the CRA
distinguishes expenditures as either a charitable expense or administrative expense
based on the use of the property.
Property that is clearly used to further a charitable object, such as a church,

mosque, temple, school, or hospital, where substantially all of the building is required
to further a charitable object would clearly represent a charitable expense and
therefore the expenses associated with maintaining and managing that building would
be resources devoted to a charitable activity. In addition, in the course of carrying on
charitable activities, a registered charity can also devote some of its resources to
management and administration (e.g., occupancy costs for office space).4° In both
instances, a charity must be able to substantiate and demonstrate how its resources are
being used.
Our records indicate that the Assembly has purchased the following
properties:
• 60 Green Lane, Thornhill, ON, L3T 7P5, 1994 — 2000

• 1166 Warden Avenue, Toronto, ON, M1R 2R1, 2000 — 2003
• 319 161h Avenue, Richmond Hill, ON, L4B 3N1, 2004 — 2007
• 12056 Leslie Street, Richmond Hill, ON, L4E 3R5, 2007 - 2010
During our audit interview of October 17, 2011, the Assembly represented
that the properties were used as a place for: planning and organizing programs;
37 Had the CRA not considered this arrangement under the section "Issued a receipt for a gift or donation
otherwise than in accordance with the Act and its Regulations", it would have regarded this transaction as a gift to
a non-qualified donee, which would also be cause for revocation.
38 See section 3 of this letter.
39 See section 4 of this letter.
40 Management and administration expenses are not considered expenditures on charitable activities.
13
100-17-13
meetings for directors, volunteers and others; and office space. However, the audit
was not able to corroborate this statement. The audit found that the Assembly did not
carry on any of its events/programs at the property locations,'" and was unable to
provide sufficient documentation to support the need to manage an office for
administrative purposes.42 However the audit did find that, of the total expenses
reported on the Assembly's financial statements, approximately 43 to 52 percent of
expenditures are directly related to the maintenance, management and financing of
property over the audit period.
This has raised questions with respect to the intent for which property was
acquired. As such, a review was conducted in relation to the four properties the
Assembly has reported on its T3010s and financial statements since registration.43 As
a result of this review, it is the CRA's view that the Assembly granted control of
these properties to a third party:
41
As per audit documentation and the Assembly's responses to questions (in quotation):
- Eid Dinner: took place each year at Woodbine Banquet and Convention Hall. This is a "... long
standing event and planning is minimal because the event is run the same each year. The Assembly
sends out invitations by email and the venue is always the same."
- Eid Prayer: took place at a different centre each year. This "does not need to plan for this event
since it happens each year...last year... it was held at the Afghani Centre";
- Conferences/lectures: a conference took place at the Jaffari Islamic Centre, "... they administered
the May 2008 Conference with other organizations";
- Hussein Day: no supporting documentation was provided to suggest that this event took place at the
Assembly's premises.
- Imam Mandi Day: no supporting documentation was provided to suggest that this event took place
at the Assembly's premises, "...no planning goes into this event... it administers the activities of
Imam Mandi Day with other organizations";
- Light Display: activity of held at the Festival of Lights City of Niagara Falls, "... the
Niagara Falls City Council administered this event".
42 In this regard,
- the Assembly was not able to provide any documentation to support planning activities at its
premises;
- the Board of Directors' meeting minutes do not reflect any reporting of subcommittees to the Board
of Directors with respect to the planning of events;
- the Assembly provided three meeting minutes for the three year audit period for the Board of
Directors meetings;
- documentation in support of meetings was negligible both in quantity and quality, signed by only
one director, and do not support the expenses associated with these properties as a meeting place;
and
- the Assembly was unable to provide any meeting minutes for the Board of Trustees, or ad hoc
meetings that could explain the need to maintain an office for administrative purposes.
43 A review of the Land Registry Office documentation would indicate that the beneficial owner of 60 Green Lane
property was that of the Assembly.
14
100-17-14
• the Assembly does not appear to have a need to hold property to
conduct its activities or to maintain an office space for management
and administrative functions;
• the financing for the last two properties reported by the Assembly was
maintained outside the Assembly's books and records and managed
through a director's private bank account;45
• it appears that the Warden Avenue property was being used for the
benefit of a Mr. Mohammad Sadegh Muaddel Ebrahimi46 with no
apparent charitable purpose;
44 As noted above.
45 In this regard, we also note that Mr. Hosseini Nassab financed $129,533.39 over a three year period to cover the
mortgage payments, and a renovation that took place in 2005 for the 16th Avenue property; and the Assembly
made a single entry in 2007 to report three years of transactions representing the financing of this property. With
respect to the Leslie Street property, the Assembly made regular payments to Mr. Hosseini Nassab to cover the
mortgage costs of this property.
46 Our opinion is based on the following:
1. The Land Registry Office identifies Mohammad Sadegh Muaddel Ebrahimi in Trust as the beneficial
owner. Additional documentation registered with the Land Registry Office would suggest that the
reference to "in Trust" is with respect to the mortgage Mr. Ebrahimi held with the Assembly.
2. Mr. Muaddel Ebrahimi is not a listed Director/Trustee on the 2000 T3010. This would suggest that the
"in Trust" is not with the Assembly in the capacity of a Trustee. Our records indicate that Mr. Muaddel
Ebrahimi resided at the Warden Avenue address from 2001 to 2004. This would indicate that this was
the residence of Mr. Muaddel Ebrahimi.
3. The Assembly registered a mortgage against the property with Mr. Muaddel Ebrahimi in the amount of
$110,000 as did the Royal Bank of Canada with respect to a mortgage of $116,500. This would indicate
that the Assembly had a limited interest in the property, but the property was actually owned by another.
4. The Assembly did not record the full value of the property on their financial statements; rather, the asset
was recorded as the amount invested in the property. This would indicate the limited interest in the
property, but not ownership.
5. Mortgage payments were not expensed through the Assembly's income statements for the entire period.
This would indicate that Mr. Muaddel Ebrahimi was making the mortgage payments.
6. It would appear that the profit realized from the sale of the property was not accounted for with the
Assembly. Rather, the amount originally loaned to Mr. Muaddel Ebrahimi was returned and invested in
a GIC in the amount of $109,000.
It is the CRA's opinion that the Assembly had a limited interest in the property, and the property was
purchased by Mr. Ebrahimi as a principal place of residence.
15
100-17-15
• funding for property appears to have been provided from unknown
sources;47
• the resources devoted to property appear to be segregated and re-
invested into property;48
• the Assembly appears to be complacent with respect to deficits and
surpluses resulting from property holdings,49 which do not appear to
impact the Assembly's affairs;
• the Assembly was unable to provide any meeting minutes for the
Board of Trustees, or ad hoc meetings that could explain: why a
property was purchased; why a property was sold; how it would meet
the needs of the Assembly; why it did not meet the needs of the
Assembly; or the advantages of having a property to advance a
charitable object or activity;50
47 See below for reference to Unknown Sources.
60 Green Lane / Forgiven Loan/Unknown Source $140,000

1994 — 2000
In 1994, the Assembly received a long term loan which
appears to have been forgiven in 2000 when property was
sold. The Land Transfer documents indicate that the
property was purchased on April 28, 1995 in the amount of
$140,000 and subsequently sold for $139,999. The
Assembly on its 2000 financial statements indicate a
surplus of $140,000 which would indicate a forgiven loan
given the proceeds from the sale do not exceed the
purchase price to substantiate paying off a loan.
1166 Warden Sale — Break Even 0

Avenue /
2000— 2003
16th Avenue / Gift / Unknown Source $99,432

2004 - 2007
Funding received through Mr. Hosseini Nassab in 2004.
Recorded gain from sale in 2007 $196,716
Less: Repayment in 2007 to Hosseini Nassab when ($33,390)

property was sold.
12056 Leslie Recorded gain from sale in 2010 $49,025

Street /
2007 — 2010
Total — Unknown source and gain on sale. $451,783
Funds segregated in a GIC investment account. $450,000
43Ibid - Total — Unknown source and gain on sale.

49Meeting minutes dated: March 29, 2004; July 15, 2006; and May 17, 2007.
" A review of all meeting minutes provided from August 12, 2003 to June 11, 2010 was completed.
16
100-17-16
• the Assembly's Board of Trustees is responsible for managing the
property holdings; however, they do not record meeting minutes or
report back to the Board of Directors;
• documentation such as: loan agreements with financial institutions to
obtain financing, City Officials for property tax, and Land Registry
Office for 12056 Leslie Street and 16th Avenue rest with
Mr. Hosseini Nassab;
• the Land Registry Office did not identify the Assembly as the
beneficial owner for the 1166 Warden Avenue, the 12056 Leslie
Street, or the 16th Avenue properties.
In our letter of July 21, 2008, we advised the Assembly of our concerns with
respect to governance and internal controls over finances and property holdings
vested with the board of Trustees,5I and our current audit findings seems to
corroborate these concerns.
We have also identified other problems regarding the Assembly's handling of

property purchases that may offend public policy. 2 For example, we note that:
■
the Assembly appears to have disregarded its obligation to adhere to the
Ontario Religious Lands Act when it acquired the 16th Avenue and 12056
Leslie Street properties; 53 and
■
the Assembly misrepresented the beneficial owner to financial institutions to
obtain financing, City Officials for property tax, and Land Registry Office
regarding Trustee arrangements. Canada Mortgage and Housing Corporation
states that: "Mortgage fraud occurs when someone deliberately misrepresents
information on a loan application, to obtain mortgage financing that likely
would not have been approved if the truth had been lcnown." 54
It is therefore the CRA's opinion that the Assembly did not hold title to its
properties to advance a charitable object, and it remains unclear as to the true
51 See our letter of July 21, 2008 section: Governance and Internal Financial Controls.
52 See CRA's Policy Statement CSP-P13, Public Policy: The courts have held that an organization is not charitable
in law if its activities arc contrary to public policy. An activity cannot be held to be contrary to public policy
unless there is a definite and officially declared and implemented policy (i.e., found in an Act of Parliament, a
regulation or other publicly available government document of any kind). Also sec Canadian Mogen David Adorn
for Israel v. Canada (Minister of National Revenue) (2002 FCA 323), 2002-09-13.
3 The Trustee documentation provided in support of 16th Avenue and 12056 Leslie Street properties does not vest
with the required number of Trustees as required by the Assembly's 1993 or 2006 Constitutions, and the title to
the property is not recorded to be held with the Assembly as required by the Ontario Religious Lands Act.
54 We note that Mr. Hosseini Nassab knowingly made false statements in order to obtain financing for both the
16th Avenue and 12056 Leslie Street properties. (Statutory Declaration signed on June 18, 2004 for the 16th
Avenue, and September 4, 2007 Trust Agreement which provide, "...Owner and the Trustee are aware that the
holders of any registered mortgage/charge on the Property will consider this Trust Agreement as a breach of the
terms of the mortgage.")
17
100-17-17
ownership or purpose of the property acquired by the organization. As such it is our
view that the Assembly has failed to demonstrate that its resources are devoted to
charitable activities carried out in furtherance of exclusively charitable objects.
1.2.2 Advancement of unstated non-charitable collateral purposes
The courts have confirmed that in determining whether an organization

qualifies for registration, it is necessary to consider both the objects for which it was
established and the nature of the activities presently carried on by the organization as
a potential indicator of whether it also operates for other unstated, collateral objects.55
As already mentioned, every registered charity must be established by a

governing document that identifies the objects for which the organization is
established. An organization is not permitted to pursue objects that are not authorized
by the terms of its governing documents.
On March 3, 2007, the Assembly submitted for review an amended

Constitution dated December 31, 2006 with new objects and informed the CRA that it
had changed its legal name from the Ahlul Bayt Assembly of North America to the
Islamic Ahlul Bayt Assembly of Canada.56 Our response of July 21, 2008 raised a
number of concerns not only in regards to the Assembly's stated objects, but also in
regards to the actual nature of the Assembly's activities, including the conduct of its
operations in support of a seemingly collateral political purpose.5
55 See Vancouver Society of Immigrant and Visible Minority Women v Minister of National Revenue [1999] 1
S.C.R. 10. and Guaranty Trust Company of Canada v. Minister of National Revenue [1967] S.C.R. 133.
56 The Assembly's amended objects, as contained in its December 31, 2006 Constitution, were:
(I) To promote the teachings of Islam according to the school of Ahlul Bayt (a.$);
(2) To encourage the propagation of the Shi'a Ithna-asheri faith;
(3) To present the correct image of Shi'a throughout Canada and the world;
(4) To safeguard and further the religious, moral, social, and educational interests of the followers of the Shi'a
Ithna-asheri faith, in particular the younger generation in Canada;
(5) To create, cultivate and maintain goodwill, amnity and understanding between the followers of the faith, in
particular, and humanity, in general;
(6) To support activities and positions among Shi'a with respect to cultural, economic, and social development in
Canada;
(7) To accept and/or manage charitable trusts and/or bequests and donations, gifts and legacies from any
individual or organization in accordance with the terms of such trusts and/or bequests, so long as the terms are
acceptable to the AHLUL BAYT and the trust or bequests fall within the Aims and Objectives of the AHLUL
BA Y7
(8) To remain within the bounds of the Sharia of the Shi'a Ithna-asheri faith in all its activities and undertakings;
(9) To collaborate and cooperate as appropriate with other religious organizations;
(10) To assist and coordinate among existing Shi'a centres to expand their activities and to promote their cultural,
social and economical standing; and
(II) To defend the principles of the AHLUL BAYT and their followers around the world
'As cited in our letter, our concerns in this regard were based on the "Assembly's focus on `...national programs
for [the] welfare, both socio-political and economic-cultural welfare, of the Shia Community in Canada...', the
Terms of Reference of its Media and Public Relations Committee [as contained on its website], and the
Assembly's stated objective of undertaking "all such activities which are of benefit to the followers of the Shia
Ithna Asheri faith."
18
100-17-18
In its response of October 18, 2008, the Assembly disputed the CRA's
interpretation of its political intent, and assured the CRA that "nothing would be done
to implement the new constitution until we received clearance from CRA. Therefore,
right up to this time we have not implemented any of the provisions of the new
constitution".
We have considered your representations in this regard; however, based on the

observations noted below, we believe that the Assembly may have operated under its
Constitution dated December 31, 2006:58
a) When the Assembly submitted its 2006 Constitution, it provided that the
principal reason for changing its constitution was to change its name to the
"Islamic Ahlul Bayt Assembly of Canada" from "Ahlul Bayt Assembly of
North America". It is worth noting that the Assembly had already begun using
the name as early as 2000, as shown on mortgage and trustee documents.
b) The Assembly's March 2007 submission also provides that another reason for
the change was to "make the document more meaningful, understood and
practical". In this regard, we note that as early as 2005, the Assembly's
website indicates that it has established representatives across Canada. The
November 22, 2011 meeting minutes state that: "It was agreed that Board
members should travel to different parts of Canada with a view to letting the
Shi'a communities in those places becoming aware of the Assembly and
encouraging them to become members of the Assembly". The Assembly also
passed the motion to disseminate its meeting minutes "to all the known Shi'a
organizations in Canada".
c) The new Constitution was in fact enacted when it was signed by two directors
on December 31, 2006. In this regard we note that the Assembly's meeting
minutes of December 31, 2006 state that "the constitution with all the
corrections and suggestions was approved".59 Furthermore, the Assembly's
2006 information return (T3010) states that it made changes to its governing
documents during that fiscal year.6°
58 In order to fully understand the operational purposes of the Assembly, it was necessary for the CRA to consider
information that was provided by the Assembly, or available in the public domain, outside of the current period
under review.
59 The Assembly's December 31, 2006 meeting minutes.
6° In the 2006 annual information return (T3010), section Al asks "Has the charity made any changes to its
governing documents during the fiscal period (e.g., letters patent, articles of incorporation, constitution, trust, or
by-laws)?" The Assembly's response was "Yes" and, a hand written note on the T3010 states "Document already
19
100-17-19
d) The Assembly's meeting minutes of December 31, 2006 state that "once the
Constitution is in place, we will formally invite membership applications".61
e) On its annual information returns (T3010),62 the Assembly declares as an

ongoing program the activity to "assist member organizations with
fundraising".
f) The Assembly advertised its amended objects to the public.63
It is our view that objects 3, 6, 10, and 11 of the December 31, 2006
Constitution were written to further unstated collateral purposes, which are to:
• formalize the Assembly's objective to act as an umbrella organization; and

• to support the operational goals of the Iranian Ahlul Bayt (a.s.) World
Assembly (ABWA) in Canada. 64
a. Act as an Umbrella Organization
From our observation of the audit information available to us, combined with
information available in the public domain, it appears the Assembly operated to
support the unstated collateral purpose of acting as an umbrella organization. We note
the Assembly's response to our audit interview questions,65 and a statement found on
its archived Web site (www.islamabc.org) which states:66
The Assembly was founded by a group of people who, after careful

[sic] examination of the position of the followers of the Ahlul Bayt
in Canada, concluded that is grassroots, umbrella organization
was much needed... [emphasis added] ...
61 The Assembly's December 31, 2006 meeting minutes.

62 The Assembly's annual information returns (T3010) from 2005 to 2009.
63 For example, in two separate posters for Imam Mandi Celebrations, the Assembly listed objects from both their
1993 Constitution/2011 Letters Patent and their December 31, 2006 Constitution. It is also worth noting that the
posters also articulate objects that are not found in any one of the Assembly's set of Constitutions.
The Ahlul Bayt (a.s.) World Assembly (ABWA) is an Iranian NGO established by order of the Ayatollah
Khamenei and based in Tehran, Iran.
65 2011 Audit Interview, Assembly's Response to question 4 1.1: Can you provide a brief history of the Assembly
and how it got started? Why does the Assembly exist? The Assembly notified the CRA that in 1992 or 1993, some
of the Assembly members decided that there was a need for a Shia organization in North America. With this
organization, Shias can work together on a number of issues such as (1) public relations. The Assembly,
representing one voice for the Shia community, can provide information to government and media. (2) Decide on
which religious scholars to invite to give Islamic lectures. The Assembly further notified the CRA that initially,
they wanted to create one organization for all of North America but they found that North America was too large
so they deckled to concentrate on Canada.
66 "Islamic Ahlul Bayt Assembly of Canada, " Online Archive:
http://web.archive.org/web/20050311123708/http://www.islamabc.org/about.htm
20
100-17-20
Upon the suggestions and requests from the followers of the Ahlul
Bayt in Canada and taking into consideration the establishment of
the Àhlul Bayt Assembly', it was concluded that now was the time
to form a larger, more comprehensive representation. This would
enable the Assembly to represent its followers of the Ahlul Bayt and
to provide a structured, umbrella support while carefull [sic]
avoiding redundant and intrusive activities.
The audit findings also indicate that the Assembly has conducted activities
that are commensurate of an umbrella organization by assisting in the establishment
and fundraising of other organizations as follows:
• Imam Mandi Islamic Centre Inc. (IMIC). A review of the Assembly's 2006
T3010 Qualified Donees Worksheet indicates that it assisted in the
establishment and fundraising of this organization. The Assembly stated
during the interview that it issued donation receipts on behalf of IMIC. In this
regard, we note that the Assembly gifted $20,000 to IMIC in 2006, $84,000 in
2007, and $12,660 in 2008.67 The audit also found that the Assembly went as
far as opening a bank account on January 23, 2008, to segregate and manage
mortgage and condo payments for 1041 McNicoll Avenue on behalf of
IMIC.68
• Canadian Hussaini Association (CHA). The Assembly gifted $79, 990 to

CHA in 2005, which did not become a registered charity until July 1, 2008.
• . The Assembly gifted $12,140 to the

in 2009, a non-qualified donee, and apparently entered into a third
party receipting scheme to assist in fundraising.69
• Our audit findings indicate that the Assembly may be

attempting to provide funds to an organization it has referred to as ,
. In this respect, the Assembly wrote a cheque in the amount of
$4,649.43 that was deposited into the account it opened for IMIC. Then IMIC
provided a receipt 0984 to the Assembly stating that this provides for
"balance of mandiyeh account that held by ahlulbayt".
67 The Assembly gifted and receipted $20,000 to IMIC in 2006, which was not a registered charity at that time.
IMIC was only notified by letter on March 18, 2008 of its effective date of registration starting March 27, 2007.
As these gifts fall outside of the audit period, a review as to whether the Assembly maintained direction and
control over the funds was not conducted. Therefore, the arguments as to whether the Assembly gifted to a non-
qualified donee, or entered into a third party receipting scheme with IMIC was not pursued due to the concerns
already raised in this letter.
68 The Assembly failed to report its Bank of Montreal account number . It also appears that the
Assembly may have misrepresented the beneficiary of the bank account to BMO by establishing a bank account in
one of its operating names rather than that of IMIC.
69 See section 3 below.
21
100-17-21
To be eligible for registration as an umbrella organization, certain
requirements must be met.7 Umbrella organizations that may qualify to become
registered charities include charities established to:
• assist other registered charities;71

• advance a recognized charitable object;72 or
• hold title to property for other registered charities.
In this regard, the Assembly's formal objects (as per section 1.1 above) are
not clearly worded to qualify as an umbrella organization. Further, as detailed above,
a review of the Assembly's activities in this regard would fail to meet the
requirements to qualify for registration as a charitable umbrella organization.
b. Support the operational goals of ABWA
As originally mentioned in our July 21, 2008 letter, we also advised the
Assembly that "certain Articles and Sections of the Assembly's amended Constitution
suggest to us that the Assembly's operations are carried out in adherence to, and in
furtherance of, the objectives of the Ahlul Bait (a.s.) World Assembly". The letter
outlined some of our concerns in this regard. /3
In its October 18, 2008 letter the Assembly responded, in part, that "we
categorically deny that we are a Canadian branch of Ahlul Bayt (a.s.) World
Assembly..."The fact there is an organization Ahlul Bayt (a.s.) World Assembly' in
Iran does not mean that we are a branch of it or have any direct connections with it",
and that "since we are not members of the World Assembly of Iran, we are not
concerned with their aims and objectives".
" CPS-026 - Guidelines for the Registration of Umbrella Organizations and Tide Holding Organizations.
71 The Charities Directorate's position is that providing a service or assistance that directly improves the charitable
programs of other registered charities, that improves the efficient administration of other charities, or that enables
charities to realize economies of scale that they could not achieve on their own, is charitable. The Directorate is
prepared to accept that an Umbrella Organization may provide incidental support to organizations that are not
registered charities, (maximum 10% of devoted resources) provided this support is focused on providing a benefit
to the community-at-large. Furthermore, umbrella organizations must indicate precisely the means by which they
intend to improve the effectiveness and/or efficiency of other registered charities.
72 Umbrella organizations established to further a particular charitable object may convey benefits on constituent
groups as incidental to the achievement of that object, which is usually related to a specific topic, such as a
particular subject of education, or particular health issue. To qualify, the beneficiaries must be the public-at-large,
or a sufficient segment thereof. As such, the object and activities must be clearly and specifically focused on
providing a direct benefit to the public and not to members. An umbrella organization must show that its activities
are directly connected to furthering the delivery of charitable services to meet the legislative requirements that it
carry on its "own charitable activities".
73 The Assembly's operations are carried out in adherence to, and in furtherance of, the objectives of AB WA; The
Assembly's website maintained active hyperlinks to ABWA; ABWA's website contained a report written by the
Assembly; and the Assembly invited ABWA's Secretary General to one of its Eidul-Fitt events.
22
100-17-22
We have considered your representations; however, it continues to be our
view that the Assembly, in whole or in part, was established to support the
operational goals of ABWA in Canada. It is important to note that we have made this
assumption based on the information that was made available to us,74 along with our
analysis of the information available in the public domain. For example, we note that:
• ABWA's news agency identifies the Assembly as a local branch in

Canada: ABWA's worldwide network of affiliated institutions include
more than 30 "Local Ahlul Bay! Community Centres," which exist
throughout the world, including Canada, 75 and support ABWA's overall
goals. 6 The Ahlul Bayt News Agency,77 which reported on an interfaith
ceremony in Toronto, describes Mr. Hosseini Nassab as the "chairman of
the local chapter of Ahlul Bayt Canada."78 Likewise, another report by the
same news agency describe Mr. Hosseini Nassab as the director of the
"Local Ahlul Bayt (A) World Assembly in Canada".79 80
Mr. Nassab describes himself as the founder of the Assembly,8I and was a
Director/Chairman from 1994 to 1995 and from 2003 to 2011.82
Mr. Hosseini Nassab was highly involved in the purchase and sale of the
majority of the Assembly's properties, including providing $225,345.4683
in financing for the 16th Avenue property.
From 1999 to 2003, Mr. Nassab was the President of the Islamic Centre of
Hamburg (IZH).84 His website reveals that he is the founder of the "...the
74 See section 2.1 — Failed to maintain or provide books and records in accordance with the Act.
75 "Introduction to the Ahlulbayt World Assembly," Ahlulbayt World Assembly, Translation of http://www.ahl-ul-
bait.com/fa.php/page,1975A6254.hmtl (accessed May 1, 2012).
76 Ibid.
77 ABWA runs the Ahlul Bayt News Agency (ABNA) in order to report on stories and issues of interest to the
Shiite community and, according to ABWA, is referred to by other media outlets as an authentic source of news
for Shiites around the world. Translation of http://www.ahl-ul-bait.com/fa.php/page,1975A6254.hmtl (accessed
May 1, 2012).
78 ABNA News Article: Translation of http://www.abna.ir/data.asp?lanz= I &id=164496
(accessed April 23, 2012)
7 "The Last Shia Imam birthday celebrated in Toronto," ABNA News:
http://wwvi.abna.ir/data asp?lang=3&id=164499 (accessed July 13, 2012)
8° On its Website, ABWA indicates that it has established a number of "Affiliated Institutions" such as "Cultural
Centres" throughout the world (including in Canada), that are responsible for such undertakings as the
organization of meetings for cultural teaching programs, the provision of publication and media support for
cultural activities, including conferences, media productions, journals and web-based publications, and the
monitoring of, and reaction to, important news and discussions about ABWA in various countries.
81 "Some of the achievements of Grand Ayatollah Hosseini Nassab: " hoseini.org/por-a.htm (accessed September
19, 2012).
82 Assembly's Registered Charity Information Returns (T3010).
83 Calculated as Mortgage payments and a renovation totalling $125,913.39 plus two certified cheques written to
the Trust Account in the amount of $20,000 and $79,432.07 for the purchase of 166 Avenue.
84 "Direction of ICH," Islamic Centre Hamburg, httn://en.izhambure.com/ueber-das-islamish-zentrum-
hamburWleitung-des-izh (accessed August 16, 2012) & Hosseini Nassab's website: www.hosseini.org (accessed
September 19, 2012).
23
100-17-23
Islamic Academy of Deutschland, Hamburg (Germany)" or Islamische
Akademie Deutschland E.V.85 Germany's Federal Ministry of the Interior
stated that this organization is known to be subordinate to the Government
of Iran in the dissemination of Islamic revolutionary ideology and pro-
regime propaganda throughout Germany.86
In this regard, we believe that Mr. Nassab may have established the
Assembly to also facilitate the spread of Iranian revolutionary ideology in
Canada."
• ABWA interferes in the affairs of the Assembly: During the audit visit of
October 2011, Mr. Sajan was asked about a document contained on a
computer in his home. He explained that the document was a draft letter to
ABWA advising it that the Assembly did not wish to join or represent
ABWA. Mr. Sajan further stated that ABWA's top officials "persist in
interfering in the affairs of ABAC [Assembly]",88 and for "which they have
no right to do so". In spite of this, the Assembly never mailed the letter
and informed the CRA that the matter had been dealt with over the phone.
• The Assembly's directors attend ABWA-member conferences: According

to ABWA's website, its General Assembly consists of more than 700
elites, intellectuals, and scholars from over 120 countries.89 Its members
convene once every four years and are in continuous communication with
ABWA." During the audit interview, the Assembly informed the CRA
that four of its board members (Mr. Sajan, Mr. Syed Rizvi, Mr. Syed
Bagri, Mr. Atta Hussein) have attended these ABWA-member
conferences at ABWA's expense.9I These four individuals are listed on
the Assembly's annual information returns (T3010s) from 1994 to 2003,
and have played a key role in the purchase and sale of properties, and/or
the day-to-day operations of the Assembly.
" "Biography," Website of Grand Ayatollah Seyed Reza Hosseini Nassab, http://www.hoseini.org/biol.htm
(accessed April 18, 2012). The Islamic Centre of Hamburg (IZH) and the Islamic Academy of Deutschland,
Hamburg (Islamische Akademie Deutschland E.V.) are the same organization. They share the same address and
hone numbers.
Federal Ministry of the Interior, Germany: www.verfassungsschutz.de . See also Egmont Paper 35, Fearing a
"Shiite Octopus" by the EGMONT Royal Institute for International Relations, January 2010.
"As detailed in Appendix A.
" The Assembly indicated that Syed Hassan Mousavi Tabrizi, "the representative of MJAB in Damascus" sent a
letter to the Assembly. While we were not provided with a copy of this letter, we can only presume that it
Rertained to the reasons why ABWA would want to interfere in the Assembly's internal affairs.
" "An Introduction to the Ahlulbayt (A.S.) World Assembly," Ahlul Bayt Portal — Affiliated with the Ahlulbayt
World Assembly, http://www.ahlulbaytportal.com (accessed December 12, 2011).
9° "An Introduction to the Ahlulbayt (AS.) World Assembly," Ahlul Bayt Portal — Associated with the Ahlulbayt
World Assembly, Translation of http://www.ahlulbaytportal.com (accessed December 12, 2011)
91 2011 Audit Interview, Assembly's response to question # 2.14.2.
24
100-17-24
In particular, we note photographs of Mr. Sajan, as a representative from
Canada, speaking at the Economic Commission session of the 5th General
Assembly of Ahlul Bayt (a.s.) World Assembly meeting, held in
September 2011. 92Another article highlights the outcome of the meeting
of the Regional Committee members from Europe and America, and
states that representatives from 15 countries attended the meeting,
including Canada [emphasis added]. 93 During that same conference,
President Admadinejad, in his speech, referred to the anniversary of the
September 1 1 th incident as "a complex game designed to emotionally
affect human society and was an excuse to attack the Islamic world"."
Furthermore, Naim Qassem, the Deputy Secretary General of Hizballah,95
was invited by ABWA to speak at the opening ceremony of this 5th
General Assembly meeting.96
• The Assembly invited ABWA representatives to its functions: The

Assembly invited ABWA's Secretary General, Sheikh Mohammed Hasan
Akhtari, to one of its Annual Eid-ul-Fitr dinners.97 Sheikh Akhtari is one
of ABWA's highest authority that is responsible for administering ABWA
and implementing the policies and projects that have been approved by its
Supreme Council. 98 It is worth noting that Hassan Nasrallah, the leader of
Hizballah, is a current member of the Supreme Council.99
• Reporting to ABWA: A report from the Assembly on the Eid ul-Fitr

Prayer held on December 27, 2000 was found on ABWA's website.166 The
report states that it was written by a "Mr. Mohammad Sadek
(believed to be a variation in the spelling of Mr. Ebrahimi). When
questioned about the report, the Assembly represented that ABWA may
have retrieved it from its website. During our review of the Assembly's
archived website, we were unable to find this report.
92 "Economic Commission of the 5th General Assembly Meeting" http://www.abna.ir/data.asp?lang=3&Id=265380

(accessed May 31, 2012).
93 "Regional Committee of Europe and America Discusses Most Important Issues of Shia Communities"
http://www.abna.ir/data.asp?lang=3&id=265278 (accessed September 20, 2012)
94
YouTube Video "Ahmadinejad" 9/11 was a designed complicated game for attacking Islamic countries"
https://www.youtube.com/watch?v=inKwfl HXiDU
95 Hizballah is a listed entity under the Criminal Code of Canada. See http://www.publicsafetv.gc.ca/prg/ns/le/cle-
eng.aspx#Hizballah
96 "Hezbollah official: Muslims power originated from Imam Khomeini," Ahlul Bayt News Agency, September 12,
2011, http://www.shiaunity.com/data.asp?lang=3&1d=265029 (accessed February 2, 2012).
97 "Islamic Ahlul Bayt Assembly of Canada", http://www.islamabc.org/newsl.htm (accessed July 21, 2008). The
Assembly did not provide any documentation related to this invitation.
98 "Introduction to the Ahlulbayt World Assembly," Ahlulbayt World Assembly, Translation of http://www.ahl-ul-
bait.com/fa.php/page,1975A6254.hmtl (accessed May 1, 2012).
" "Current and Former Members,"http://www.ahl-ul-bayt.org/fa.php/page,shora.shora (accessed July 16, 2012).
1°° "Report from Ahlul Bayt Assembly of Canada About the Eid Ul-Fitr prayer held in Toronto, Wednesday Dec.
27, 2000"; www.ahl-ul-bait.com/conferences/namaz/report.htm (accessed July 18, 2008).
25
100-17-25
Our research suggests that Mr. Ebrahimi currently delivers Friday sermons
at the Imam Ali Mosque,1°1 an organization run by the Sociedade
Beneficente Muculmana do Parana (SBMP) in Brazi1,102 which appears to
also form part of ABWA's worldwide network. For example, we note that
both Sheikh Mohammad Khalil, the religious leader of the SBMP's Imam
Ali Mosque,1°3 and Jamil Ibrahim Iskandar, the president of the SBMP,1°4
represented Brazil at the 4th ABWA General Assembly meeting in August
2007.1°5 We also note that SBMP's website issued a call for articles to be
presented at ABWA's September 2011 conference that was attended by
Mr, Sajan.1°6 It is therefore reasonable to believe that, during his time with
the Assembly, Mr. Ebrahimi was associated to ABWA, which could
explain the Assembly's report on ABWA's website and the financial
arrangements for property purchases.
We note that during the audit interview, the Assembly represented that it
received donations from Iran in the 1990s.1°7 We also note that in 1995,
the Assembly reported a $140,000 long term loan from an unknown
source to purchase property at 4-60 Green Lane, Thornhill.108 When this
property was sold in 2000, the $140,000 loan appears to have been
forgiven and the proceeds from the sale were loaned to a Mr. Mohammed
Sadegh Muaddel Ebrahimi for the purpose of purchasing another property
at 1166 Warden Avenue.109 According to our records, this was Mr.
Ebrahimi's mailing address in 2001.110
• Logo: from 2005 to 2009, the Assembly's archived website111 displays

ABWA's logo.112 It features prominently on the Assembly's homepage, to
the extent that it appears that it is the Assembly's own logo.
101 Sociedade Beneficente Muculmana do Parana's website: Translation of www.ibeipr.com.br/discursos.php

102 Brazil — Arab News Agency: www2.anba.com.br/noticia_artes.kmf?cod=7430384&indice=10
103 "
Quarto Encontro Internacional da Assembleia Mundial Ahlul Bait (A.S)" — Arresala, Centro Islamico no
Brasil: Translation of http://www.arresala.org.br/not_vis.php?op=14&data=0&cod=529
1°4 Sociedad Beneficente Muculmana do Parana's website: Translation of
hqp://ibeipr.com.br/noticias.php?id=noticia= 145
I " "Quarto Encontro Internacional da Assembleia Mundial Ahlul Bait (A.S)" — Arresala, Centro Islamico no
Brasil: Translation of www.arresala.org.br/not vis.php?op=14&data=0&cod=529 & Sociedade Beneficente
Muculmana do Parana's website: Translation of http://ibeipr.com.br/noticias.php?id=noticia=145
106 Sociedade Beneficente Muculmana do Parana's website: Translation of
vvww.ibeinr.com.br/noticias.phOid noticia=634
107 2011 Audit Interview, Assembly's response to question # 17.3.
1" See footnote 47 for reference to Unknown Sources.
109 The property was purchased for $226,500. The Ontario Land Registry records show that there were two
tnortgages charged on this property, one with thRoyal Bank of Canada for $116,500 and the second with the
Assembly for $110,000. Title of the property was held by "Mohammad Sadegh Muaddel Ebrahimi in Trust". The
Trust document refers to the mortgage held by the Assembly.
II° Based on our research, Mr. Ebrahimi was identified as a director/contact representative for the Assembly. See
Translation of http://www.aqaed.com/theshia/moasesat/amrica/kanadahtml & Translation of
http://www.canadianblogfa.com/post-22.aspx
"Islamic Ahlul Bayt Assembly of Canada", Online Archive of http://www.islamabc.org
26
100-17-26
• Funding from the Cultural Centre of the Republic of Iran: During the audit
interview, when questioned about income from other sources,113 the
Assembly represented that, once in a while, it receives funds from the
Iranian Culture Centre, based in Ottawa. The audit revealed a $500
cheque114 written to the Assembly from the "Cultural Centre of Embassy
of Islamic Republic of Iran". In addition, the Cultural Centre was a
corporate sponsor for the Assembly's September 2011 Eid-ul-Fitr
celebration'15 and a "Br. Hamid Muhammadi ll6 from the Iranian Cultural
Centre" was listed on the guest list.
Our research indicates that the Cultural Centre is linked to the Islamic
Culture and Relations Organization (ICRO)117 118 and that the ICRO
collaborates with ABWA. 119
In light of the above, it remains our view that the Assembly is supporting the
operational goals of ABWA. While we do not dispute that the Assembly is
established as a separate legal entity in Canada, we do not accept its representations
where it "categorically deny that we are a Canadian branch of Ahlul Bayt (a.s.)
World Assembly" or that the Assembly has "any direct connections with it."
Such activities that support the operational goals of ABWA would lack the
charitable requirement to meet the public benefit test120 because of ABWA's strong
112 This logo can be found on the Ahlul Bayt World Assembly's Website (http://www.ahl-ul-bayt.org) and on
ABWA's news agency's (ABNA) website (http://www.abna.ir/).
113 2011 Audit Interview, Assembly's response to question # 17.2
"4 The cheque is dated October 20, 2011 and signed by a "H. Mohammadi".
113 "Islamic Ahlul Bayt Assembly of Canada presents 8th Eid-ul-Fitr Celebration", September 18, 2011 brochure.
116 On July 10, 2012, the Ottawa Citizen reported that Hamid Mohammadi, the cultural affairs counselor at the
Iranian embassy in Ottawa, had stated in an interview for an Iran-based website aimed at Iranian expatriates in
Canada, that the embassy was attempting to recruit ethnic Iranians to "be of service" to Tehran under the guise of
cultural outreach programs. Mr. Mohammadi urged Iranian-Canadians to "occupy high-level key positions and to
"resist being melted into the dominant Canadian culture" since Canada's growing Iranian population "can only be
of service to our beloved Iran through these programs and gatherings." Steven Edwards, "Iranian embassy
recruiting expats," The Ottawa Citizen, July 10, 2012:
htto://www.ottawaci tizen.com/news/Iranian4 embassy-frecruiting+expats/6908143/story.html (accessed August
17, 2012). In addition, Iranian-Canadian human rights and advocacy groups have alleged that the embassy was
trying to recruit and spy on Iranian-Canadians by giving $500 to individuals who provide information on Iranians
who are active against the regime. Likewise, former CSIS agent, Geoffrey O'Brian has reportedly stated that the
embassy ran an infiltration operation under the guise of a cultural exchange program for Iranian students. Source:
"Protesters accuse the Iranian embassy of recruiting spies," CTV News, July 16, 2012,
http://www.ctvnews.ca/canada/protesters-accuse-iranian-embasskof-enlisting-spies (accessed 2012-08-20)
Ill The ICRO and the Ottawa Cultural Centre share the same logo: Cultural Centre of Iran, http://iranculture.ca
(accessed July 31, 2012) and Islamic Culture and Relations Organization, http://en.icro.ir (accessed July 31, 2012)
18 The ICRO's website has a dedicated webpage entitled "Islamic Culture and Relations Organization (ICRO) -
Cultural Center of The Islamic Republic of Iran — Ottawa",
http://en.ottawa.icro.ir/index.aspx?siteid=196&pageid=13966
19 "Other communities collaborating with the Organization," Translation of
http://www.icro.ir/index.aspx?siteid=261&pageid=4185 (accessed April 23, 2012)
120 See CRA's Policy Statement CSP-P13, Public Policy: The courts have held that an organization is not
charitable in law if its activities are contrary to public policy. An activity cannot be held to be contrary to public
27
100-17-27
political agenda with direct affiliations to the government of Iran and Hizballah. For
example,121
• The government of Iran appears to exert a high degree of influence over

ABWA and its operations. ABWA collaborates with the Islamic Culture
and Relations Organization (ICRO), an affiliate of the Ministry of Culture
and Islamic Guidance of the Government of Iran.122 One of ICRO's
objectives includes the dissemination of information about the principles
and realities of the Islamic Revolution, commonly referred as "exporting
the Islamic revolution".I23 In fact, for Ayatollah Khomeini,'24 exporting
the Islamic Revolution became one of the chief pillars of the country's
revolutionary ideology and the principal goal of Iranian foreign policy.' 25
ABWA's political weight can be viewed from the composition of its
current and former Supreme Council membership who held/hold positions
of significant authority within the Iranian government, including advisors
to Ayatollah Khomeini and President Ahmadinejad.
• ABWA maintains ties with Hizballah, an organization listed as a terrorist

entity in Canada in 2002. The leader of Hizballah, Hassan Nasrallah, sits
on ABWA's Supreme Council; and key members of Hizballah attend and
speak as members at ABWA conferences, including those attended by the
Assembly's directors. Furthermore, the Secretary General of ABWA,
Mohammad Hassan Akhtari, is generally referred to as the "operational
father" of Hizballah,126 and ABWA officials have expressed support for
Hizballah resistance to the occupation of Palestine through jihad.127
policy unless there is a definite and officially declared and implemented policy (i.e., found in an Act of
Parliament, a regulation or other publicly available government document of any kind). Also see Canadian Magen
David Adorn for Israel v. Canada (Minister of National Revenue) (2002 FCA 323), 2002-09-13.
121 See Appendix A for a more detailed analysis of our findings regarding A13 WA.
'22 The US Department of Treasury imposed sanctions against 17 individuals and entities related to the Iranian
government's human rights abuses, its support for terrorism, and Iran's IRGC. The Ministry of Culture and
Islamic Guidance is one such entity listed. "Treasury Sanctions Iranian Government and Affiliates",
www.treasury.gov
127 See Appendix A.
124 ABWA operates under the authority of Ayatollah Khomeini.
125 See Appendix A.
124 He reportedly earned this title by supervising the development of Hizballah's military structure, and continued
to.ppenge Hizhallahp_rojects in Lebanon during his second term as ambassador to Syria. Manal Lutfi, "The
Making of Hezbollah," Asharq Alawsat, May 18, 2008,
http://www.asharq-e.com/printasp?artid—id12794 (accessed November 23, 2011) & "PSP demands Skaff prove
he did not sell land to Iran," The Daily Star, August 27, 2007,
http://www.dailystar.com.lb/News/Politics/Aug/27/PSP-demands-Skaff-prove-he-did-not-sell-land-to-lrattashx
(accessed December 1, 2011).
127 See Appendix A.
28
100-17-28
2. Failed to comply with or contravened any of sections 230 to 231.5 of the Act
Subsection 230(2) of the Act requires that every registered charity keep books
and records of account at an address in Canada recorded with the Minister containing
information in such form as will enable the Minister to determine whether there are
any grounds for the revocation of its registration. I28
In order to meet this requirement, a charity must keep adequate books and
records so that official donation receipts issued, as well as income and expenses, can
be verified. In addition, the Act requires charities to keep information that can be used
to determine whether their activities continue to be charitable. This information
should include, for example, copies of minutes of meetings, correspondence, publicity
brochures or advertisements, and detailed charitable program activities including
program reports.I29
Subsection 231.1(1) of the Act permits the Minister to "inspect, audit or

examine the books and records of any other person that relates or may relate to the
information that is or should be in the books and records of the taxpayer" for any
purpose related to the administration or enforcement of the Act.
The policy of the CRA relating to the maintenance of books and records, and
books of account, is based on several judicial determinations, which have held that:
• it is the responsibility of the registered charity to prove that its charitable

status should not be revoked (Canadian Committee for the Tel Aviv
Foundation v. Canada);13°
• a registered charity must maintain, and make available to the CRA at the time
of an audit, meaningful books and records, regardless of its size or resources.
It is not sufficient to supply the required documentation and records
subsequent thereto (Canadian Committee for the Tel Aviv Foundation v.
Canada; The Lord's Evangelical Church of Deliverance and Prayer of
128 Subsection 230(4) of the Act provides that: "every person required by this section to keep books of account
shall retain:
(a) the records and books of account referred to in this section in respect of which a period is prescribed, together
with every account and voucher necessary to verify the information contained therein, for such period as
prescribed; and
(b) all other records and hooks of account referred to in this section, together with every account and voucher
necessary to verify the information contained therein, until the expiration of six years from the date of the last
taxation year to which the records and books relate."
129 Subsection 284(1) of the Act defines a "record": includes an account, an agreement, a book, a chart or table, a
diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a
voucher, and any other thing containing information, whether in writing or in any other form.
130 At para [26] "... I am satisfied that the onus is on an appellant bringing an appeal against revocation of
registration... it being assumed that the taxpayer is in the best position to provide information about his own
affairs.."
29
100-17-29
Toronto v. Canada, (2004) FCA 397); and
• the failure to maintain proper books, records and records of account in

accordance with the requirements of the Act is itself sufficient reason to
revoke an organization's charitable status (College Rabbinique de Montreal
Oir Hachaim D'Tash v. Canada (Minister of the Customs and Revenue
Agency, (2004) FCA 101; subsection 168(1) of the Act).
Our audit found a number of deficiencies related to the Assembly's obligation

to maintain or provide books and records, for example:
• Doctrine of faith: The Assembly has yet to provide its doctrine of faith as
requested by the CRA in its letter of July 21, 2008, and during the October
2011 audit interview. Rather, the Assembly referred the CRA to various books
related to the Shia faith;131 132
• Documents related to the Assembly's property purchases and other related

expenses: The Assembly failed to maintain several documents pertaining to
property purchases as part of its books and records. In this regard, the last two
properties recorded on its financial statements were purchased and financed
through a director's personal bank account, Mr. Hosseini Nassab. As the CRA
does not have the banking records of Mr. Hosseini Nassab, we are unable to
reconcile revenue and expenses with respect to these properties.
• Bank account: The Assembly failed to provide information or documents on

its Bank of Montreal Community Account number in the
name of Ahlul Bayt Assembly of North America (specifically cheques and
deposit slips for this account). The CRA had to request these documents
directly from the Bank of Montrea1.133
• Records of communications/letters between ABWA and the Assembly: In our

letter of November 16, 2011, the CRA requested that the Assembly provide a
detailed history of its relationship and/or contact with ABWA regardless of
the purpose or outcome.134 In its response, the Assembly provided only one
131The onus is on a charity to provide documentation to support its activities.

132The Supreme Court of Canada describing religion is from Amselem, supra, note 16 per Iacobucci J., but did not
define "particular and comprehensive" (<< particulier et complet>>) in French). A search of this expression
indicates that it is used to describe any writing on a subject that is both detailed yet wide-ranging and thorough in
scope. It is the CRA's position that this means the beliefs, teaching and practices must be both detailed yet wide-
ranging and thorough.
133A review of these documents indicated that the Assembly received funds and made payments to facilitate
property transactions on behalf of Imam Mandi Islamic Centre Inc. (IMIC).

4 CRA's letter of November 16, 2011 where we requested the Assembly to answer questions such as: Who from
ABWA contacted the Assembly? Who from the Assembly was in contact with ABWA? What was the purpose of
ABWA's contact with the Assembly? When did contact between ABWA and the Assembly begin? How often has
30
100-17-30
draft letter it never sent, but did not provide the written letter noted in the draft
from Majma e Jahani Ahlul Bayt (MJAB) based in Tehran.I35 The Assembly
also failed to respond to any of our questions regarding its history with
ABWA, and we have not been provided with any documents regarding
invitations by ABWA to its conferences, or to ABWA representatives to the
Assembly's functions:36 Without such information, we are unable to confirm
the Assembly's assertion that it is not a branch of ABWA.
• Meeting minutes: These records provide information that is necessary to

document matters such as the organization's operational focus and who
exercises decision-making power/direction and control over the use of the
Assembly's resources (funds, personnel, and property), I37 The meeting
minutes provided to the CRA were deemed to be inadequate for the following
reasons:
o meeting minutes for committees and trustees were not created and or
retained;
o the Board of Directors meeting minutes are signed by only one

director, and fail to provide sufficient information to allow the CRA to
determine whether its activities continue to be charitable;
o significant events are not recorded or discussed. Of particular concern

is the specific funds raised for the Barn earthquake.I38 Our review
indicates that there is no record in the minutes to support the
fundraising efforts, that a single large donation was received, the
difficulty in putting the funds to their intended use, and finally the
ABWA contacted the Assembly? When did ABWA initially contact the Assembly? I low does ABWA and the
Assembly communicate with each other?
135 Draft letter addressed to Your Highness, Aoullah Uzma Khamenai provided with your response to the CRA
dated January 12, 2012 where the Assembly was attempting to address MJAB's desire for the Assembly to have a
legal relationship with MJAB. The draft letter went on to say that MJAB's "...top official, who persist in
interfering in the affairs of ABAC." "... We can co-operate with them but are absolutely not willing to be under
them."
136 For example, the Assembly did not provide documentation regarding its invitation of ABWA's Secretary
General, Sheikh Mohammed Hasan Akhtari to one of its Annual Eid-ul-Fitr dinners. In order to facilitate such an
invitation, one would expect that the Assembly would be required to contact and make arrangements with ABWA
and other arrangement such as visa application, travel, dates, etc. This type of information was requested in our
follow-up interview letter of November 16, 2011, for which the Assembly failed to respond.
137 The Assembly was asked to provide complete "... copies of the minutes of all meetings held by the Assembly's
Board of Directors and its Board of Trustees from January 1, 2003, to present" in our letter dated July 21, 2008.
The Assembly confirmed with the CRA during our interview of October 17, 2011 that "... the meeting minutes
provided in the October 18, 2008 letter represented all meeting minutes. No other meeting minutes exist". The
Assembly stated that "there are no meeting minutes between May 25, 2008 and February 14, 201I..."
138 A review of the meeting minutes from 2003 to 2010 do not make any mention of the Barn earthquake or
donations received for that purpose.
31
100-17-31
donor agreeing to redirect the funds to the Assembly's general
operating budget in 2009;139
o no records of discussion have been noted regarding the assistance the

Assembly provided to four organizations.14°
In addition, based on our observations, it is reasonable to believe that the

minutes of meetings provided by the Assembly may have been created to address the
issues and/or concerns raised in our July 21, 2008 letter. In this regard, the CRA
conducted a brief analysis of questions and concerns in our letter and the content of
the minutes. Our review provided the following observations:
a) The CRA requested copies of minutes of meetings from 2003 to 2008. The
Assembly provided copies of these minutes. These minutes are brief with
very little content and signed by only one director, Mr. Ghulam. We also
note that during our audit visit in 2011 the Assembly represented that the
mainframe of the computer had crashed in 2007 or 2008 and all the records
were lost except for the financial records that were kept on a laptop;
b) The CRA requested copies of the Right Path Magazine published over the
past 5 years. The audit found that the Assembly last published a magazine
in 1996. However, the minutes comment in a number of instances on why
the magazine had not been published. These comments are made in the
minutes in 2003, 2004, 2005, 2006 and 2007 seven to eleven years after
the last publication of the magazine. We also note that no mention is made
in the meeting minutes from 2009 to 2011;
c) The CRA requested copies of all promotional materials used to advertise

the appearance of guest speakers in relation to the conference including
guest speakers as well as the seminar topics, and transcripts and/or
audiotapes/videotapes of the seminars themselves. The Assembly's
minutes make note that "...the sound system was not operating efficiently
and regrettably, the proceedings were not recorded." Yet the Assembly
does not discuss any more details about the Conference other than the
success of the attendance;
139 The Assembly accepted the donations for the Barn earthquake in 2004. The funds were receipted in 2004 as per
the Assembly's T3010, and segregated on the financial statements as a liability for a "specific fund". We note that
the Assembly fell into a deficit situation in 2005 and 2006 indicating that these funds were used in the general
operating account. In 2009 the Assembly cleared the liability and credited their equity account which removed the
liability from its books and records. It represented to the CRA in our 2011 interview that the donor had been
contacted and agreed to redirect the funds to the general operating account. We would expect a substantial
donation such as this one would have been discussed during the Board of Director meetings; however, there is no
mention of this in the meeting minutes.
14° Since 2003
32
100-17-32
iht
d) The CRA had a number of concerns regarding the non-charitable nature of
some of objects found in its December 31, 2006, Constitution. We note
that in its December 31, 2006 minutes the Assembly provides the
following statement, "Since we are not experts in Charity Law, we will not
implement anything under this constitution until the Canada Revenue
Agency, Charities Division has given us clearance." However, as indicated
above, our audit found that the Assembly did operate under this
Constitution;
e) The CRA was also concerned with respect to the governance and internal
financial controls given to the Trustees. We note that in its
December 31, 2006 minutes the Assembly provides the following
statement "The intention behind the clauses is to provide protection
against abuse".
Under paragraph 168(1) (e) of the Act, the Minister may revoke the
registration of a charity because it has failed to comply with, or contravened any
section of 230 to 230.5.
3. Issued a receipt for a gift or donation otherwise than in accordance with the
Act and its Regulations (Paragraph 168(1)(d) of the Act)
The Act provides various requirements with respect to the issuance of official
donation receipts. These requirements are contained in Regulations 3500 and 3501 of
the Act and are described in some detail in Interpretation Bulletin IT-110R3 Gifts and
Official Donation Receipts."'
Based on our audit observation, it appears that the Assembly issued donation
receipts for gifts intended to the a non-qualified
donee. This observation is based on the fact that:
1. The Assembly issued donation receipts for gifts it received from directors
of the ,142 and residents of Brampton (where the is
located); 143 and
2. The Assembly forwarded $12,140 to the .I44
141 http://www.cra-arc.gc.ca/E/pub/tp/itIlOr3/it110r3-e.html
142 Industry Canada Federal Corporation Information.
143 Receipt number 82 in the amount of $4,500 ( ; Receipt number 88 in the amount of $2,000
( and Receipt number 108 in the amount of $200 ). In addition the Assembly also
issued a number of donation receipts to individuals who have Brampton addresses where the is located. In
this regard, we would comment that in 2008 and again in 2010, the Assembly did not have donors from Brampton.
Therefore, it would appear that there may have also been additional gifts made to the Assembly that were directed
as gifts for the We would also comment that the family name of the Principal is the same as that of many
of the Brampton donors.
33
100-17-33
The purpose of the registration scheme for charities under the Act is to ensure
that only those organizations that are registered may provide official donation
receipts. The integrity of the scheme is seriously breached when an unregistered
organization arranges with a registered charity for the use of the registered charity's
registration number to provide tax relief for donations that are not made to that
registered charity. A registered charity may not issue receipts for gifts intended for
another unregistered organization, or allow non-registered organizations to use its
charitable registration number.
A registered charity that contravenes the receipting requirements of the Act by

issuing receipts on behalf of, or in the name of, another person is liable, under
subsection 188.1(9), to pay a penalty equal to 125% of the eligible amount stated on
the receipt(s) as follows:
a) 2009 Taxation Year

• $ 12,140 X 125% penalty = $
15,175
Pursuant to paragraph 168(1)(d) of the Act, the Minister may also revoke a
charity's registration if it issues a receipt for a gift or donation otherwise than in
accordance with the Act.
4. Failed to file an information return as required under the Act (Paragraph

168(1)(c) of the Act)
Pursuant to subsection 149.1(14) of the Act, every registered charity must,

within six months from the end of the charity's taxation year, without notice or
demand, file a Registered Charity Information Return (T3010) with the applicable
schedules. The T3010 must be completed by a director, trustee or like official of the
charity. By signing the return, this official certifies "...that the information given on
this form, the basic information sheet and any attachments is, to the best of my
knowledge, correct, complete, and current." The certification block contains the
warning "It is a serious offence under the Income Tax Act to provide false or
deceptive information." A charity is not meeting its requirement to file an information
return if it fails to ensure the accuracy of the information contained in its return.
The audit has found that on a number of occasions the Assembly has made
significant errors in reporting and misrepresented information on its financial
statements that was then carried through and reported on its T3010s. In addition, on at
least two occasions over the audit period, significant errors were made and adjusted
through the following year's T3010 because the Assembly did not complete and
144 Cheque numbers 275 and 292. The first dated September 14, 2009 in the amount of $10,540, and a second
dated December 16, 2009 in the amount of $1,600.
34
100-17-34
submit the appropriate form to correct the error.145 In addition, these errors were also
misrepresented in the following year's books and records. Finally, the Assembly
entered into arrangements with other organizations and individuals and reported these
as transactions within its own books and records. In this regard we note:
1. For fiscal period ending December 31, 2008:
• The Assembly deposited $58,282 into a Bank of Montreal account, I46 but
did not report these funds on the Assembly's Income and Expenditure
account, or the Assembly's T3010. As a result, Line 4700 Total revenue
was misrepresented;
• The Assembly did not report all of its receipted donations on its 2008
T3010. As a result, Line 4500 Total eligible amount of tax-receipted gifts
was lacking the amount of $8,550;147
• The Assembly reported a "Prior Year Correction" of $12,660 on its

Income and Expenditure account and then reported that same amount on
its Qualified Donees Worksheet (T1236) in 2008 as a gift for Imam Mandi
Islamic Centre. This error was then further misrepresented on Line 5050
148
Total gifts to qualified donees excluding enduring property;
• The Assembly misreported a mortgage interest of $20,855 on its Income

and Expenditure account. According to our analysis, approximately
$15,000 of this amount represents a prior year expense associated to the
settlement of the sale of the 16th Avenue property.149 As a result of this
error, Lines 4820, 4850, and 4950 were all incorrectly reported. When the
Assembly was asked about the reported interest amount it advised that it
was a calculation error.150
2. Fiscal period ending December 31, 2009:
145 Although the CRA would not necessarily revoke the organization for this reporting error alone, it is presented
to inform the Assembly of the CRA's guide Completing the Registered Charity Information Return which
provides for specific guidelines on How to Amend the Return which is to complete Form T1240, Registered
Charity Adjustment Request and to mail or fax the document back to CRA.
146 Community Account number in the name of Ahlul Bayt Assembly of North America. As per
hand written notes on the bank statements this account was used to issue receipts, mortgage and condo payments
for Imam Mandi Islamic Centre (IMIC). It appears that this account was created and subsequently closed to
manage a property purchase and facilitate receipting of donations for gifts made to IMIC.
147 We note that receipt 4 40 dated January 21, 2008 in the amount of $5,250, receipt # 41 dated January 21, 2008
in the amount of $1,800, receipt #42 dated February 8, 2008 in the amount of $750, and receipt # 43, dated
February 8, 2008 in the amount of $750, were not included in the calculation of receipted revenue. We also note
that these funds were deposited into the Assembly's Community Account number in 2008.
148 Amount of $17,660 was reported on line 5050 which included the amount of $12,660.
149 Interest Expense
ISO We believe that the Assembly misrepresented this as a "calculation error".
35
100-17-35
• Revenue reported on Line 4700 Total revenue included $10,580 deposited
into the Assembly's bank account intended for Mr. Hosseini Nassab. This
amount was part of the $26,261.20 transferred from Vancouver into the
Assembly's bank account by Mr. Chawki Noureddine.151 The Assembly
attempted to cover this error in 2010 by misrepresenting this amount as a
prior year expense;
• Line 5000 regarding expenditures on charitable programs included

$12,140 represented as "Education expenses" on the Income and
Expenditure account. Our audit findings indicate that the education
expense represented "school tuition at the In this
regard, it is the CRA's opinion that the Assembly misrepresented this item
on its financial statements. This is of concern because of the Assembly's
participation with a third party receipting scheme with a non-registered
organization.
3. Fiscal Period Ending December 31, 2010:
• The funds transferred through the Assembly's account for the benefit of
Mr. Hosseini Nassab were identified as a "Prior year correction" of
$10,580 on its Income and Expenditure account and this amount was
further misrepresented on the T3010 expenditure Lines 4920, 4950, 5040
and 5100 as this amount was not an expense of the Assembly's.152
• Line 4600 — The Assembly reported $43,553 as net proceeds; however,

our calculations reflect net proceeds of $92,834.40.1'3
According to our observation of the information we have reviewed, it has also

become apparent that the Assembly, over the years, has omitted to report all of the
directors, trustees, or like officials on its T3010s. A review of the Assembly's website
and documentation with respect to property were reviewed against individuals
151 The Assembly advised the CRA that it did not know why Mr. Noureddine was sending Mr. Hosseini Nassab
funds during our interview of October 2011.
152 In order to correct an error on a T3010 a Form T1240, Registered Charity Adjustment Request is required.
153
Sale Price 820,000.00

Less: Costs as per Trust Ledger Statement
Realtor 18,724.60
Legal Fees 700.00
19,424.60
Adjusted Cost Base 800,575.40

Book Value 707,741.00
Proceeds 92,834.40
36
100-17-36
reported on its T301 Os since registration. As a result, we note that the Assembly has
never listed the following individuals as a director, trustee or like official on its
T3010s:
• Seyed Nabil Abbas, Chawki Noureddine, Hamid Zarrabi, Ali Abu Raya,
Maryam Seyed, Fatima Zahra, Ali Jafari — listed as part of the Assembly's
Board of Trustees/Board of Directors. 154
• Robabeh Zare Bidaki Gholan Hossein, Mohammad Sadegh Muaddel

Ebrahimi -listed on property agreements.
Despite this, we note that at least three of these individuals have played a
significant role in the affairs of the Assembly with respect to property and
fundraising:
• Mr. Mohammad Sadegh Muaddel Ebrahimi appears to have been loaned

funds to purchase 1166 Warden Avenue; 155
• Robabeh Zare Bidaki Gholan Hossein was identified as a trustee on the

purchase agreement for the 319 16th Avenue property; I56
• Mr. Chawki Nourredine fundraised in Vancouver on behalf of the

Assembly. Funds directly deposited into the Assembly's account from a
Vancouver bank branch include $21,455 in 2009 and $21,380 in 2010.
It is the CRA's opinion that the Assembly has not reported all of its
directors/trustees/like officials on its T3010s. I57
Consequently, for each of the reasons noted above, it is our view that the
Assembly has improperly certified that it has filed returns containing correct,
complete and current information and therefore has not met the requirement of the
Act.
5. Conclusion
On the basis of our audit findings, it is our preliminary view that, for each of
the reasons outlined above, there are sufficient grounds for revocation of the Islamic
Ahlul Bayt Assembly of Canada's registration as a charity under subsection 168(1)
the Act.
154 httn://www.islamahcom/serviee3.htm
155 The Assembly's governing documents require property to vest with its Trustees.
156 Ibid.
157 Although many of the directors that were not reported fall outside of the current audit period, they were
included in the analysis to demonstrate the regular omission by the Assembly of its directors/trustees/like officials.
37
100-17-37
The Organization's Options:
(a) No response
The Assembly may choose not to respond to the issues raised above. In that
case, the Director General of the Charities Directorate may then consider a course of
action that could include the issuance of a Notice of Intention to Revoke the
registration of the Assembly in the manner described in subsection 168(1) of the Act.
(b) Response
Should the Assembly choose to respond, please provide written

representations and any additional information regarding the findings outlined above
that the Assembly wishes the CRA to consider within 30 days from the date of this
letter. After considering the representations submitted by the Assembly, the Director
General of the Charities Directorate will decide on the appropriate course of action,
which may include one or more of the following:
• No compliance action necessary;
• The issuance of an educational letter;
• The issuance of a notice of penalty in the manner described in
subsection 188.1(9) of the Act;
• Resolving the issues through the implementation of a Compliance
Agreement; or
• The Minister giving notice of its intention to revoke the
registration of the Assembly by issuing a Notice of Intention in the
manner described in subsection 168(1) of the Act.
If the Assembly appoints a third party to represent it in this matter, please send
the CRA a written authorization naming the individual and explicitly authorizing that
individual to discuss the Assembly's file. If you have any questions or require further
information or clarification, please do not hesitate to contact us at
Yours sir rely,
320 Queen Street
Ottawa ON K1A OL5
38
100-17-38
Attachments:
Appendix A: The Islamic Republic of Iran and the Ahlul Bayt (A.S.) World
Assembly (ABWA)
Appendix B: CRA letter to the Assembly dated July 21, 2008
39
100-17-39
14, Asa .
APPENDIX A
Islamic Ahlul Bayt Assembly of Canada
Contents:
The Islamic Republic of Iran and the Ahlul Bayt (A.S.) World Assembly (ABWA)
100-17-40
APPENDIX A - THE ISLAMIC REPUBLIC OF IRAN AND THE AHLUL BAYT
(A.S.) WORLD ASSEMBLY (ABWA)
1. The Islamic Republic of Iran'
A Theocratic Political System
In 1979, Grand Ayatollah Ruhollah Khomeini, led the Iranian Revolution that resulted in
the collapse of the Monarchist government and the establishment of the Islamic Republic
of Iran.2 Following a public referendum, a new Constitution was adopted in December
1979,3 creating a theocratic government that enshrined Grand Ayatollah Khomeini E4
vision of direct clerical rule or velayat-e-faquih (rule by the jurisprudent).4
The US Department of State publication ECountry Reports for Human Rights Practices
For 2011 L describes Iran system of government as follows:
The Islamic Republic of Iran is a constitutional, theocratic republic in which

Shia Muslim clergy and political leaders vetted by the clergy dominate the
key power structures. Government legitimacy is based on the twin pillars of
popular sovereignty ❑ albeit restricted ❑ and the rule of the supreme leader of
the Islamic Revolution. The current supreme leader, Ayatollah Ali Khamenei,
was chosen by a directly elected body of religious leaders, the Assembly of
Experts, in 1989. Khamenei writ dominates the legislative, executive, and
judicial branches of the government. He directly controls the armed forces
and indirectly controls internal security forces, the judiciary, and other key
institutions.5
Described as [the most powerful figure in the government11,6 the Constitution establishes
the Supreme Leader, who has no fixed term, as
Iran S chief spiritual guide, exercising ultimate authority over the state
apparatus and all political matters. As enumerated in Article 110 of the
On September 7, 2012, Foreign Affairs Minister John Baird announced that Canada had suspended diplomatic
relations with the Islamic Republic of Iran, closed its embassy, declared all remaining Iranian diplomats in Canada
personae non gratae, and instructed them to leave Canada within five days. Minister Baird characterized the
Government of Iran as the most significant threat to global peace and security, citing its military assistance to President
Assad s regime in Syria, its refusal to comply with UN resolutions pertaining to its nuclear program, its threats to the
existence of Israel, anti-Semitic rhetoric and incitement of genocide, its human rights violations, its disregard for the
Vienna Convention and its guarantee of protection for diplomatic personnel, and its sheltering and support of terrorist
groups. The later required Canada to formally list Iran as a state sponsor of terrorism under the Justice for Victims of
Terrorism Act. [Canada Closes Embassy in Iran, Expels Iranian Diplomats from Canada, []Foreign Affairs and
International Trade Canada, September 7, 2012, http://www.Internalional.gc.ca/media/affinews-
communiques/2012/09/07a.aspx?lang=eng&view=d (accessed 2012-09-18).
2 [Iran: U.S. Concerns and Policy Responses; ; Katzman, Kenneth, Congressional Research Service Report for
Congress, February 14, 2011, p. 1-2.
3 Later amended in 1989.
4 [Iran: Government and society,! 1Britannica Online Encyclopedia, http://www.hritannica.com.
5 httr)://WWW.state.gov/j1drlirls/hrrot/humanrightsreport/index.htm?dynamic load id=186425.
6 Freedom House, Freedom in the World 2012 — Iran, July 12, 2012, http://www.freedomhouse.orgireport/freedoin-
world/2012/iran.
A-1
100-17-41
constitution, the LeaderL powers and responsibilities include: setting general
state policy guidelines and supervising their implementation; declaring war
and peace; commanding the armed forces; appointing and dismissing the six
clerical members of the Guardian Council, the head of the judiciary, the head
of state radio and television, and the commanders of the armed forces;
overseeing the activities of the Expediency Council; and confirming the
suitability of presidential candidates, certifying the presidential candidate
elected in a popular vote, and dismissing a president found incompetent by
parliament or convicted of violating the constitution by the Supreme Court.7
As described in the book Who Rules Iran? The Structure of Power in the Islamic
Republic, another key element of Ayatollah Khamenei power are the nemayandeha-ye
rahbar (representatives of the supreme leader). Personally appointed or approved by the
Ayatollah, these Cclerical commissars Care positioned in every important state ministry
and institution, as well as in most revolutionary and religious organizations Eand
collectively [form a diverse, countrywide control network dedicated to enforcing the
authority of the supreme leader, ensuring the greatest possible vigilance against
ideological deviation. They are more powerful than ministers and other government
functionaries, and they have the authority to intervene in any matter of state. L8
Accordingly, the Ayatollah is able to assert his authority in Mve different spheres
namely:
• Ministries in the executive branch;

• The armed forces and security services;
• Provincial representatives (Friday imams);
• Revolutionary and religious organizations; and
• Iranian cultural offices/centres in embassies and Islamic centres in major foreign
cities.9
Iranian Foreign Policy: Exporting the Iranian Revolution
According to several sources, Grand Ayatollah Khomeini and his followers believed that
the Iranian Revolution was a model that should inspire other nations. I° As such, its
exportation became one of the chief pillars of the country revolutionary ideology and a
principal goal of Iranian foreign policy." This policy, known as Mashru al-Thawra al
7 US Library of Congress, Area Handbook Series, Iran: A country study, 2008, httn://lcweb2.1oc.gov/frd/cs/irtoc.html.
See also Who Rules Iran? The Structure of Power in the Islamic Republic, Wilified Buchta, Washington, D.C: The
Washington Institute of Near East Policy and Konrad Adenauer Stiftung, 2000, p. 46.
8 Who Rules Iran? The Structure of Power in the Islamic Republic, Wilified Buchta, Washington, D.C: The
Washington Institute of Near East Policy and Konrad Adenauer Stiftung, 2000. p. 47-48.
9 The Ayatollah Lg representative is stated to serve as the head of these offices, which are described as lhominally
attached to the embassies but acting independently. Source: ibid., p. 49.
Velayat-e-Faqih (Supreme Leader) and Iranian Foreign Policy: A Historical Analysisf Alam Rizvi, Mahtab, op.cit,
p. 115; Exporting Iran's Islamic Revolution: Steering a Path between Pan-Islam and Nationalism) Ram, Haggay, in
Terrorism and Political Violence, Vol. 8, Issue 2, 1996, p. 7; 1Reading Khamenei: The World View of Iran is Most
powerful Leader , Karim Sadjadpour, Carnegie Endowment for International Peace, Washington DC, 2008, p. 21. US
Library of Congress, A Country Study: Iran, 2008, (Concept of Export of Revolution).
Exporting Iran lg Islamic Revolution: Steering a Path between Pan-Islam and Nationalismq Ram, Haggay, in
Terrorism and Political Violence, Vol. 8, Issue 2, 1996, p. 7; Velayat-e-Faqih (Supreme Leader) and Iranian Foreign
A-2
100-17-42
Iraniya (the Project of the Iranian Revolution), was apparently aimed at [furthering Islam
by reviving the Islamic Ummah, the worldwide Islamic Nation, which was to be based in
Iran and led by Khomeini as the Amir al-Muminun, Commander of the Faithful.
Held to be less ideologically steeped and [More influenced by pragmatism and national
interest Ethan in the past,13 the policy of exporting the revolution is one that is still
supported by Iran: I4 In a January 31, 2009 speech delivered to celebrate the 30th
anniversary of the creation of the Islamic Republic, Iran Cs President Mahmoud
Ahmadinejad, declared that [thirty years later, the Revolution is still alive and lively. J5
President Ahmadinej ad reiterated another important aspect of the Revolution by saying
that although this revolution took place in Iran, it is not restricted to the borders of
Iran. J6
Government of Iran[ Support for Hizballah
The Shiite Lebanese community has for centuries had strong religious and economic ties
with Iran. After its 1979 Islamic Revolution, Iran attempted to export its principles
outside its frontiers and reportedly saw in Hizballah17 a means to propagate these
principles in Lebanon.'8 Released in 1985, Hizballah founding manifesto opens by
holding the Islamic Republic of Iran and the Iranian Revolution as its Evanguard Land
pledging obedience to the a•rders of one leader, wise and just, that of our tutor and faqih
[jurist] who fulfills all the necessary conditions: Ruhollah Musawi Khomeini. E19
Policy: A Historical Analysis , Alam Rizvi, Mahtab, op.cit, p. 115; Instigating Instability: Irani g Support of Non-State
Armed Groups in Iraql, Geoffrey Gresh, in Al Nakhlah, Spring 2006; Iran-Syria-Hizballah-Hamas: A Coalition
Against Nature Why Does It Work?L Ely Karmon, The Proteus Monograph Series, Volume 1, Issue 5, May 2008, p.
13. In this regard, Ely Karmon fg paper quotes Ayatollah Khamenie as declaring that I exporting the revolution is like
glitter of the sun whose rays brighten the entire world.
12 Hezbollah: Born with a Vengeance, Hala Jaber, Columbia University Press, New York, 1997, p. 109. According to
the author, who quotes an October 1981 speech by Grand Ayatollah Khomeini, this objective was to be achieved not
through the invasion of neighbouring states, but through an 'invisible forceL:1[1If we wish to export the revolution, we
should do something so that the people hold the reign of affairs and the so-called third class have the upper hand It is
only through non-official trips that you can have contact with ordinary people in the streets and awaken them. Being
among the people without official decorations is more effective and better for propaganda.
13 [Instigating Instability: Iranls Support of Non-State Armed Groups in Iraqi , Geoffrey Gresh, in Al Nakhlah, Spring
2006. See also [Reading Khamenei: The World View of Iran s Most powerful Leaded , Karim Sadjadpour, Carnegie
Endowment for International Peace, Washington DC, 2008, p. 21.
14
[Reading Khamenei: The World View of Iran1s Most powerful Leader Karim Sadjadpour, Carnegie Endowment
for International Peace, Washington DC, 2008, p. 21.
1s [Iranmarks 30 years of Islamic Revolution,` The Australian, February 10, 2009,
http://www.theaustralian.com/au/news/iran-marks-30-years-of-revolution (accessed 2012-09-11).
16 Ibid.
17 Public Safety Canada[ website describes Hizballah as lit radical Shia group ideologically inspired by the Iranian
revolutions l whose i goals are the liberation of Jerusalem, the destruction of Israel, and, ultimately, the establishment of
revolutionary Shia Islamic state in Lebanon, modelled after Iran.ilHizballah is a listed entity under the Criminal Code
of Canada since December 2002. See http://www.publicsafety.gc.ca/prens/le/cle-en.aspx#Hizballah.
18 [The Roots of Hezbollah Ps Clout Lie in Irani. Los Angeles Times, September 6, 2006,
httu://articl es.latimes.com/2006/sep/1 aiworld/fg-lebi ran 10 (accessed 2013-02-12). See also Hezbollah: A Short History,
Augustus Richard Norton, Princeton, Princeton University Press, 2007, p. 34; 1Iran: U.S. Concerns and Policy
ResponsesL4Kenneth Katzman, Congressional Research Service Report for Congress, February 14, 2011, p.43-44; and
Hezbollah: Background and Issues for Congress Casey L. Addis and Christopher M. Blanchard, Congressional
Research Service Report for Congress, October 8, 2010, p. 20.
19 [ An Open Letter: The Hizballah Program.L11985.
A-3
100-17-43
This acknowledgement of IranN influence is reproduced in Hizballah 2009 political
manifesto. Emphasizing the :necessity of cooperation between the Islamic states at the
different levels, to gain strength in confronting hegemony schemes Eand in facing the
:cultural invasion of the community and media: the document states:
In this context, Hizbullah considers Iran as a central state in the Muslim

world, since it is the State that dropped through its revolution the Shah N
regime and its American-Disraeli: projects, and it is also the state that
supported the resistance movements in our region
The policy of the Islamic Republic of Iran is clear and stable in supporting the
central and main cause of the Arabs and Muslims E the Palestinian cause.
Since the declaration of the victory of the Islamic Revolution under the
leadership of Wali Al Faqih Imam Khomeini (May Allah honour his soul),
and since the replacement of the Disraeli :embassy with a Palestinian one, this
support has been ongoing in the different shapes and forms until our day
under the leadership of Imam Khamenei (may he live long). This has lead
[sic] to the achievement of outstanding victories for the very first time in the
history of the struggle with the Zionist invaders.20
As noted in the 2008 paper entitled :Reading Khamenei: The World View of IranN Most
powerful Leaderq an contrast to Arab leaders who are accused of paying lip service to
the Palestinian cause in order to appease their own populations, IranN political leadership
does precisely the opposite. Ca t The paper also quotes a speech at the 2001 International
Conference in Support of Intifada by Ayatollah Khamenei in which he stated LivVe
consider supporting the Palestinian and Lebanese people one of our major Islamic
duties and further documents the Ayatollah N opposition to Palestinian-Israeli peace
talks, arguing that only armed struggle will bring concessions from Israel.22
Since its inception, Hizballah has been the recipient of IranN political, financial and
logistical support:23
• Hizballah leader Hassan Nasrallah has admitted to receiving financial and military
backing from Iran, stating in a February 7, 2012, speech that C yes we receive
moral, political and materialistic support in all possible and available forms from
the Islamic Republic in Iran since 1982.
20 [Sayyed Nasrallah: Hizbullah[ New Political Manifesto.We Want Lebanon Strong & United 2009.
http://www.english.mogawarna.orziessaydetails.php?eid=9632&cid=214.
21 Reading Khamenei: The World View of IrantSI Most powerful LeaderI Karim Sadjadpour, Carnegie Endowment
for International Peace, Washington DC, 2008, p. 19.
22 Ibid p. 20.
23 Amal Saad-Ghorayeb asserts in his book, Hizbu'llah: Politics and Religion, that, even by Hizballah own accounting,
it would have taken an additional 50 years for the movement to score the same achievements ❑without such support. L
Source: Hizbu'llah: Politics and Religion, Amal Saad-Ghorayeb, Pluto Press, London, 2002, p.14.
24 Sayyed Nasrallah Speech on birthday of the Holy Prophet Mohammad',' February 7, 2012,
http://www.english.mogawama.orgiessaydetails.php?eid=19975&cid=323. •
A-4
100-17-44
• According to the US Department of State, Office of the Coordinator for
Counterterrorism, Esince the end of the 2006 Israeli-Hizballah conflict, Iran has
assisted in rearming Hizballah, in direct violation of United Nations Security
Council Resolution 1701. Iran has provided hundreds of millions of dollars in
support of Hizballah in Lebanon and has trained thousands of Hizballah fighters at
camps in Iran.
• Kenneth Katzman, in his 2011 report for the US Congress, states that, since 2006,
Iran has Gesupplied Hezbollah with at least 25,000 new rockets L and has supplied
at least $150 million for Hizballah Cho distribute to Lebanese citizens (mostly Shiite
supporters of Hezbollah) whose homes were damaged in the Israeli military
campaign. [126
• A US Department of Defense 2010 publication states that, as well as supplying

arms and training, Iran provides approximately $100-200 million per year in
funding to support Hizballah.27
The Islamic Culture and Relations Organization (ICRO)
As a legal affiliate of the Ministry of Culture and Islamic Guidance,28 29 the ICRO carries
out its activities Dander the guidance of the Leader of the Islamic Revolution of Iran [the
Supreme Leader], and the supervision of the Supreme Council of the ICRO, in
accordance with the foreign policies of the Islamic Republic of Iran D3°
According to its website, ICRO was established in 1995 as a merger of several Iranian
government departments, in order to centralize the managementlolicy-making, and
coordination of Iran cultural and propagation activities abroad. I
As identified in its constitution and enumerated on its website, ICRO objectives are:
1. The revival and dissemination of Islamic tenets and thoughts with a view to
reaching the true message of Islam to the people of the world;
25 FCountry Reports on Terrorism 2011 C US Department of State, July 31, 2012,

http://www.state.gov/j/ct/r1s/crt/2011/195547.htm.
26 Iran: U.S. Concerns and Policy Responses Kenneth Katzman, Congressional Research Service Report for
Congress, February 14, 2011, p. 44.

27 As quoted in ' Hezbollah: Background and Issues for Congress Li Casey L. Addis and Christopher M. Blanchard,
Congressional Research Service Report for Congress, October 8, 2010, p. 20.

28 [Affiliated Organizations http://www.farhang.govirlaffiliatedorganizations-en.html and
http://en.icro.ir 'index .aspx?siteid=257&pageid=8322&p=l&showitem=382 (accessed 2012-04-23) and
[ Introduction, Islamic Culture and Relations Organization, httn://en.icro.ir/index.aspx?siteid=257&pageid=9292
(accessed 2012-07-31).
29 The US Department of Treasury imposed sanctions pursuant to Executive Order 13628 the Ministry of Culture and
Islamic Guidance as well as a number of officials and other entities involved in the regime is ongoing attempts to
repress and silence Iran LS' people . httn:/'www.treasurv.gov/press-center/press-releases/Pages/tg1760.aspx.
30 [Introduction,: !Islamic Culture and Relations Organization, http://en.icro.ir/index.asnx?siteid=257&pageid=9292
(accessed 2012-07-31).
Ibid.
A-5
100-17-45
2. Creating awareness among the people of the world as regards the principles,
the objectives and the stance of the Islamic Revolution of Iran as well as the
role it plays in the international arena [emphasis added]; 32
3. Expansion of cultural relations with various nations and communities in general;

and the Muslims and the oppressed, in particular;
4. Strengthening and regulating the existing cultural relations between the Islamic
Republic of Iran and other countries of the world as well as global cultural
organizations;
5. Appropriate presentation of the Iranian culture and civilization as well as its

cultural, geographical, and historical characteristics;
6. Preparation of the necessary grounds for the unity among Muslims and the
establishment of a united front among world Muslims on the basis of indisputable
principles of Islam;
7. Scholarly debates and confrontations with anti-religion, anti-Islam, and anti-

Revolutionary cultures with a view to awakening the Muslims of the world
regarding the divisive conspiracies of the enemies as well as protecting the rights
of the Muslims; and
8. Growth, development, and the improvement of the cultural, political, economic,

and social conditions of the Muslims.33
Its main activities in carrying out these objectives include: holding conferences,
roundtables, and lectures; organizing Persian training classes and publishing cultural
books; and holding and participating in cultural and artistic festivals and exhibitions.34 35
32 This aim was identified on its website amongst a list of 5 of ICRO Hinost important 'objectives. !What are the
Objectives of the Islamic Culture and Relations Organization? Islamic Culture and Relations Organization,
htto://en.icro.ir/i ndex.aspx?siteid=257&pageid=8322&p=l&showitem=361 (accessed 2012-07-31).
33 AIMS Islamic Culture and Relations Organization, htto://en.icro.ir/index.asox?siteid=257&oageid=9641
(accessed 2013-02-14).
34 [ What are the main thrusts and means of the cultural activities of ICRO? Islamic Cultural and Relations
Organization, http://en.icro.ir/index.aspx'?siteid--257&pazeid=8322&p=1&showitem=369 (accessed 2012-07-31). An
undated article posted on ICRO-London s website, quotes the outgoing head of ICRO, Dr. Mostafavi, as describing
ICROli main activities under his leadership as including an increase in the number of cultural attach' t in other
countries, the purchase of new buildings aimed at the introduction of the Islamic Republic of Iran to the world, the
establishment of inter-religious talks, the pursuit of the Islamic Revolution goals, the embedding of evangelists in other
countries, and the use of educated clerics in pursing the organization s aims. Source: [Dr. Khoramshad, new head of
ICRO: Cultural activities are expected to have remarkable improves [sic] I http://london.icroir/indes.aspx?siteid-
254&pageid=11744&newsview-555385.
35 A June 20, 2012 article published in Maclean's, reported on the Iranian government attempts to influence Iranian-
Canadians and other Muslims through its embassy and affiliated organizations. These efforts reportedly include the
establishment of cultural and language centres, the sponsorship and organization of conferences, and the provision of
Farsi-language books to academic institutions. I Iran s long reach into Canada, Michael Petrou, Macleans, June 20,
2012, http://www2.macleans.ca/2012/06/20/irans-long-reach-into-canada/#more-268926 (accessed 2012-06-25).
A-6
100-17-46
The ICRO has offices in more than 50 countries, including Canada,36 in the form of
various Xultural Houses ❑that are associated with Iran embassies abroad.37 In Ottawa,
Canada, the Cultural Center is headed by Mr. Hamid Mohammadi. 38 39
Dr. Wilfried Buchta states in his book that:
[O]lie main pillar of the foreign policy of the supreme leader, a foreign policy that runs
parallel and sometimes counter to the official one of the president, rests upon the so-
called 'cultural bureaus ❑of Iran[ embassies.° Although these cultural bureaus take
advantage of the protection that is conferred upon them by their official status as a part of
the embassies, the bureau directors are representatives of the supreme leader and thus the
bureaus themselves are in reality independent of the embassies... the primary goal of the
cultural bureaus is to pass along the financial support of the supreme leader to friendly
Muslim movements abroad, thereby circumventing the Ministry of Foreign Affairs and
the president.41
2. The Ahlul Bayt (A.S.) World Assembly
The Ahlul Bayt (A.S.) World Assembly (ABWA) is identified as a department of

ICRO,42 and as one of two lateral organizations Ewith which ICRO currently
collaborates.43
36 [ In which countries does the ICRO carry out its cultural activities? 1 Islamic Culture and Relations Organization,
htto://en.icroir/index.aspx?siteid=257&pageid=8322&p=1&showitem=367 (accessed 2012-07-31).
37 [What is the designation of the offices of the ICRO outside Iran? ris lamic Culture and Relations Organization,
http://en.icro.ir/index.aspx?siteid=257&pageic1=8322&p=l&show item=368 (accessed 2012-07-31).
38 [ 2012 Imam Khomeini Conference: The Contemporary Awakening and Imam Khomeini[ thoughtsq June 13, 2012,
htto://iranculture.ca/dev/2012-imam-khomeini-conference-the-contemporary-awakening-and-i m am-khomeinis-
thoughts/.
39 A July 10, 2012, article in the Ottawa Citizen reported that Hamid Mohammadi, the cultural affairs counsellor at the
Iranian embassy in Ottawa, had stated in an interview for an Iran-based website aimed at Iranian expatriates in Canada,
that the embassy was attempting to recruit ethnic Iranians to be of service'[ lto Tehran under the guise of cultural
outreach programs. Hamid Mohammadi reportedly urged Iranian-Canadians to occupy high-level key positions and to
resist being melted into the dominant Canadian culture:-'since Canada '.S growing Iranian population .'_tan only be of
service to our beloved Iran through these programs and gatherings ❑ Iranian embassy recruiting expats,HSteven
Edwards, The Ottawa Citizen, July 10, 2012,
http://www.ottawacitizen.com/news/Iranian+embassy+ recruiting 1 expats/6908143/storv.html (accessed 2012-08-17).
40 Geoffrey Gresh states in a Spring 2006 article that Iran S foreign policy in this regard is achieved through what he
termed as five levels of ['organizational and command infrastructure namely: (1) Iranian embassies and consulates;
(2) Iranian institutions, organizations, and companies; (3) Institutions, organizations, and companies belonging to
Iranian or Muslim residents globally that are willing to assist Iran; (4) cooperation with radical Islamic states and
organizations; and (5) sponsorship of proxy organizations such as Hizballah. Source: [Instigating Instability: Iran:S
Support of Non-State Armed Groups in Iraq["; Geoffrey Gresh, in Al Nakhlah, Spring 2006. Mr. Gresh also states that,
in order to finance its activities in this regard, Iran allocates funds to government entities like its Foreign Ministry or
Revolutionary Guards, or to semi-governmental entities like charitable foundations established by Khomeini to export
the Revolution. riSee also, Hezbollah: Born with a Vengeance, Hala Jaber, Columbia University Press, New York,
1997, p. 109-111; and [Unclassified Report on Military Powers of Iran L US Department of Defense, Office of
Secretary of Defense, April 2010, which states that the Islamic Revolutionary Guard Corps Qods Force, established
as part of efforts to export the Revolution, operates in foreign embassies, charities, and religious/cultural institutions to
foster relationships with people, often building on existing socio-economic ties with the well established Shia
Diaspora., I
41 Who Rules Iran? The Structure of Power in the Islamic Republic, Wilfried Buchta, Washington, D.C: The
42 In full, the departments identified are: the Department of International Affairs of the Ministry of Culture and Islamic
Guidance, the Department of International Affairs of the Islamic Propagation Organization, the Secretariat of Ahlul
A-7
100-17-47
According to its website, ABWA is an international non-governmental umbrella
organization, based in Tehran, Iran. It was established in 1990, following a successful
petition by Shiite scholars to Iran Cs Supreme Leader, Ayatollah Ali Khamenei, under
whose authority ABWA continues to operate.44 It was established in order to support the
economic, educational, and cultural needs of Shiites throughout the world, with a
particular focus on the construction and support of mosques, schools, and other forms of
Ipiritual and material infrastructure. C115
As stated on the English version of its website, ABWA S objectives are:
1. To introduce and explicate pure Islamic culture and teachings as prescribed

genuinely by Holy Prophet of Islam (pbuh); also to protect and defend the
sanctity of the Holy Quran, Holy prophet of Islam (pbuh), and his Ahlulbayt
(a.$);
2. To boost unity and solidarity among all Muslims, especially the followers of
Ahlulbayt (a.$);
3. To defend the rights of Muslims and followers of Ahlulbayt (a.$) all over the
world, and to provide supports for the needy, underprivileged, and oppressed
people;
4. To develop spirituality and faith in God among communities, and to enhance

socio-cultural and intellectual competencies of the followers of Ahlulbayt (a.$)
throughout the globe;
5. To combat poverty and starvation among poor communities, and to help the
followers of Ahlulbayt (a.$) establish interactions with all people and followers
of other religions in order to promote peace, social justice and peaceful
coexistence worldwide;
6. To keep up the spirits of all people to pray and hope for the appearance of the
Awaited Savior of Mankind which is a common belief among the world
religions. 46
Bayt World Assembly, the Secretariat of the World Forum for the Proximity of Islamic Schools of Thought, and the
Council for the Dissemination of the Persian Language. httn://en.icro.ir/index.asnx?siteid=257&oageid=9292.
43 Other Communities collaborating with the Organization, rifranslation of
http://ww‘A ndex.aspx?siteid=261&pageid=4185 (accessed 2012-04-23).
" Introduction to the Ahlulbayt World Assembly,LIAhlulbayt Portal' Associated with the Ahlulbayt World
Assembly, Official Translation of www.ahl-ul-bait.com/faphp/page, I 975A6254.html (accessed 2012-05-01) and An
Introduction to the Ahlulbayt (A.S.) World Assembly,' JAhlul Bayt Portal [Affiliated with the Ahlulbayt World
Assembly, www.ahl-ul-
bayt.org/en.php/page,viewarticlepage/categorvID,6448/ArticleID,5992?PHPSESSID-9926c8c28665d62f7331af82340f
151b (accessed 2011-12-12).
45 The First International Assembly of the Pious Shiites' Translation of www.ahl-ul-
bavt.org/ar.php/page,2135A17029.html and [An Introduction to the Ahlulbayt (A.S.) World Assembly, HAhlul Bayt
Portal Affiliated with the Ahlulbayt World Assembly http://www.ahlulbavtnortal.com (accessed 2011-12-12).
46 An Introduction to the Ahlulbayt (A.S.) World Assembly,[lAhlul Bayt Portal Affiliated with the Ahlulbayt World
Assembly, http://www.ahlulbaytportal.com (accessed 2011-12-12). We would note that the objectives provided on the
A-8
100-17-48
As described in the book Who Rules Iran? The Structure of Power in the Islamic
Republic, Hojjatoleslam 'Ali al-Taskhiri47 indicated that ABWA has two main goals:
(1) Cho attain nezarat kardan (supremacy) over all Islamic groups active in the areas of
culture, propaganda, economics, society, and politics via peaceful propaganda and
persuasion and (2) Eto implement the Iranian claim to leadership over all ShiLii
communities in the world. E48
ABWA is governed by several bodies, the most important of which are the Secretary
General, the Supreme Council, and the General Assembly:
• The Secretary General is the individual with the highest executive authority in
ABWA who is responsible for administering the organization and
implementing policies and projects that have been approved by the Supreme
Counci1.49
• The Supreme Council, which is composed of high ranking members of the

General Assembly, is responsible for selecting the Secretary General in
conjunction with the Supreme Religious Authority, and for adopting major
policies, putting forth projects, determining the organizations budget, and
monitoring various administrative departments.5°
• The General Assembly consists of more than 700 elites, intellectuals, and
scholars from over 120 countries.5I Its members convene once every four
years in Tehran, Iran, and are in continuous communication with ABWA.52
The last General Assembly meeting was held in September 2011.
English version of the website, appear to differ to some degree from the official translation obtained for the Farsi
version. The Farsi version, for example, does not appear to include objectives 5 and 6 and incorporates an additional
object, To eradicate deprivation of the followers of Ahlulbayt in the media and sciences. L Source: Introduction to the
Ahlulbayt World Assembly, Ahlulbayt Portal [ IAssociated with the Ahlulbayt World Assembly, Official Translation
of ww vv .ahl-ul-bait.com/fa.nhp/nage,1975A6254.html (accessed 2012-05-01).
47 According to the biographical information provided in the book, Hojjatoleslam 'Ali al-Taskhiri was appointed to the
following positions by Ayatollah Khamenei: permanent member of the Office of the Supreme Leader, the head of the
International Relations Department of the Islamic Propagation Organization, which Cooperates riwith the Ministry of
Culture and Islamic Guidance, and as head of ABWA in 1990. Source: Who Rules Iran? The Structure of Power in the
Islamic Republic, Wilified Buchta, Washington, D.C: The Washington Institute of Near East Policy and Konrad
Adenauer Stiftung, 2000, p. 47.
48 Who Rules Iran? The Structure of Power in the Islamic Republic, Wilified Buchta, Washington, D.C: The
49 Introduction to the Ahlulbayt World Assembly,I ]Ahlulbayt Portal JAssociated with the Ahlulbayt World
Assembly, Official Translation of www.ahl-ul-bait.com/fa.php/nage,1975A6254.html (accessed 2012-05-01).
50 Ibid.
51 I An Introduction to the Ahlulbayt (A.S.) World Assembly,GAhlul Bayt Portal I Affiliated with the Ahlulbayt World
Assembly, http://www.ahlulbaytportal.com (accessed 2011-12-12).
52 Introduction to the Ahlulbayt World Assembly,' Ahlulbayt Portal ❑ Associated with the Ahlulbayt World
Assembly, Translation of http://www.ahl-ul-bait.com/fa.php/page,1975A6254.htm (accessed 2012-05-01).
A-9
100-17-49
Network of Affiliated Institutions
ABWA indicates that it has Chumerous branch offices and local agents ❑ Eofficially
registered and actively working in 71 countries. Although not spoken of in detail in the
English version of its website, the Farsi version references its more than 30 official
[local Ahiul Bayt Community Centres,Ewhich exist throughout the world and support
ABWA and its local offices in obtaining licenses to practice their religious activities; and
its ECultural Centres including in Canada, are apparently responsible for such
undertakings as the organization of meetings for cultural teaching programs, the
provision of publication and media support for cultural activities, including conferences,
media productions, journals and web-based publications, and the monitoring of, and
reaction to, important news and discussions about ABWA in various countries. 54
ABWACs Alignment with Iran[g Foreign Policy
A review of documents available in the public domain appears to closely align ABWA
objectives to support Iran ai foreign policy of exporting the [Iranian Revolution E For
example, we note:
• At ABWA I§ First International Assembly of the Pious Shiites in 2005: 55
■
Several speakers commented upon the hostility faced by Shiites following
the Drictory of the Islamic Revolution,Ethe role to be played by Iran in
resisting the ❑war waged against Islamic countries by arrogant countries, ❑
and IranN position of leadership for all Shiites in the world. 56
Specifically:
- In his speech, the Supreme Committee Member of ABWA,

Dr. Ali Akbar Velayati extolled the Islamic Revolution and the
Grand Ayatollah Khomeini as standard-bearers inspiring BATaves of
Islamic awareness and awakening Elweep[ing] through the
Muslim world. ❑57
- During the closing ceremony, a member of ABWA. High

Commission, Hojatulislam Mehdi Hadoi was recorded as stating
that the jAlssembly was created to look after the Shiites of the
53 An Introduction to the Ahlulbayt (A.S.) World Assembly, lAhlul Bayt Portal ❑Affiliated with the Ahlulbayt World
Assembly, httn://www.ahlulbaytportal.com (accessed 2011-12-12).
54 Ibid. It is not apparent from the documentation available, how these two groups of institutions differ.
55 The First International Meeting for the Pious Shiites started at 8 AM on Wednesday 04 04 1384 SH (which
corresponds with 2005-07-27). The meeting took place at the Razavi group L§ conference hall of the Islamic Research
Foundation in the holy city of Mashhad. Translation of ww \\.ahl-ul-baytorg/ar.ohp/page,2135A17029.html.
56 The First International Assembly of the Pious Shiites , Translation of www.ahl-ul-
bavt.orglar.phrolnage,2135A17029.html and An Introduction to the Ahlulbayt (A.S.) World Assembly,nAhlul Bayt
Portal Affiliated with the Ahlulbayt World Assembly, httn://www.ahlulbavrnortal.com (accessed 2011-12-12).
57 The First International Assembly of the Pious Shiites[ Translation of
\ ahl-ul baytorg/ar.php/page,2135A 1 7029. html.
A- 1 0
100-17-50
world and to achieve this end by whatever means possible, be they
through force or national or local pressures.
■
A number of ABWA officials expressed support for Hizballah in Lebanon
and the resistance to the occupation of Palestine through jihad: 59
- During the Assembly S closing remarks, Sheikh Muhammad Hasan

Akhtari, ABWA Secretary General talked about the great victory
C chieved by Hizballah in Lebanon against the defeated Zionists
and their Jerusalem [usurping regime. Also, Shiites have shown
great presence in the political arenas of a number of countries
which will enable them to play greater political roles within them.
The Shiites of Afghanistan have been able to showcase their
influence there, and in Iraq, God willing, they will be able to
achieve the same and be able to retain their successes there.
- The conferenceCs working committee - Project Research and

Funding Source Committee - identified six projects, including
[Building mosques as they are places of worship and guidance for
Muslims, and were traditionally the places from which Islam
dispatched its armies for war and conquest.
• During a meeting with alignitaries Eat ABWA ft Fourth General Assembly held in
August 2007, Ayatollah Khamenei reportedly stated that Islamic awareness had led to
Islam victory over [unjust and arrogant powers E The Ayatollah reportedly stated
that:
Islamic solidarity and establishment of a united Islamic Ummah are

very dangerous for the greedy arrogant powers. Therefore, in addition
to Britain, the U.S. and the Zionist intelligence services are doing their
best to prevent Muslims from fostering unity. 62
• At ABWA 5th General Assembly Conference, held September 2011 in Tehran,

special guest, President Ahmadinejad, in his speech, referred to the anniversary of the
September 1 1 th incident as:
a complex game designed to emotionally affect human society and

was an excuse to attack the Islamic world. The occupation of
Afghanistan, the occupation of Iraq The awakening of Islam is not
restricted to the awakening of Muslims or just for the saviour of
58 The First International Assembly of the Pious Shiites , Translation of www.ahl-ul-

bavt.org/ar.phn/page,2135A I 7029.html.
59 Ibid.
60
Ibid.
61 Ibid.
62
[Supreme Leader calls for propagation of Ahl-ul-Bait teachings,HAugust 19, 2007,
http://www.english.mociawama.org/print.htm (accessed 2012-09-20).
A-11
100-17-51
Muslims. No, it is a natural awakening. It is an awakening of justice, an
awakening to God, an awakening to the regaining of human identity
and of human dignity.63
• As recently as September 2012, speaking during the opening ceremonies of the Third
International Conference on Islamic Resistance,64 the Secretary General of ABWA,
Mohammad Hassan Akhtari, reportedly depicted current events in Syria as [enemies ❑
attempts to destroy the Islamic resistance fronts ❑ and stated that Cit was high time to
think out ways to support and deepen resistance thinking C 65 As reported in an Ahlul
Bayt News Agency article, Mr. Akhtari attributed the revival of [Islamic resistance
thinking ❑ to Imam Khomeini and stated that the present-day need for Islamic
resistance was more urgent than ever.66
In addition, our research has identified a number of ties between ABWACs leadership and
Hizballah:
• ABWA current Secretary General, Mohammad Hassan Akhtari, and Iran former
ambassador to Syria (1986-1997 and 2005-2008), is reportedly regarded as the
[operational father Eof Hizballah. He earned this title by supervising the development
of Hizballah military structure,67 and continued to operate Hizballah projects in
Lebanon during his second term as ambassador to Syria.68
• Hassan Nasrallah, the leader of Hizballah, is a current member of ABWAS Supreme

Counci1.69 The Supreme Council, as indicated earlier, is responsible for adopting
major policies, putting forth projects, determining the organization at budget, and
monitoring the organization I§ various administrative departments."
63 YouTube Video Ahmadinejad 9/11 was a designed complicated game for attacking Islamic countries[
https://www.youtube.com/watch?v=inKwf1HXiDU.
64 The two-day conference, held September 2012 in Isfahan (Iran), reportedly had a main aim of reinforcing unity
among Muslim nations and conferring on the strategies for resistance IliSource: Isfahan to Host Intl Islamic Resistance
Confab.! International Quran News Agency (IQNA), September 3, 2012,
htty://ca.iuna.irlen/news detail.plm?ProdID=1090414. The main topics on the Conference agenda reportedly included
The Awakening of Islamic states, the Anti-Arrogance Tendencies, the demise of Israel after the collapse of several
Arab dictatorships and the Resistance Source: [Nasrallah to deliver a speech at the 3rd International Conference on
Islamic Resistance. Lebanese Broadcasting Corporation, September 4, 2012.
h ttp://ww w. lbcgroup. tv/news/48771/press-di gest- for-tuesday-september-04-2012.
65 Senior Shia cleric: Enemies try to show Islamic Republic Inefficient, Ahlul Bayt News Agency, October 16, 2011,
http:Pabnair/data.asp?lang=3&Id=272218 (accessed 2012-04-23); LSecretary General of Ahlul Bayt Assembly:

Enemies after destroying Islamic fronts,' Ahlul Bayt News Agency, September 6, 2012,
http://abna.irldata.asp?lang=-3&id=345083 (accessed 2012-09-19).
66 Ibid. Hizballah Secretary General, Hassan Nasrallah, was reportedly also scheduled to deliver a speech at the
Conference. Nasrallah to deliver a speech at the 3rd International Conference on Islamic Resistance. _Lebanese
Broadcasting Corporation, September 4, 2012. http://www.lbcgroup.tv/news/48771/press-digest-for-tuesday-
september-04-2012.
67 [The Making of Hezbollah,LiAsharq Alawsat, May 18, 2008, http://www.asharq-e.com/print.asp?artic1=12794.
68 LPSP demands Skaff prove he did not sell land to Iran, E The Daily Star, August 27, 2007,
http://www.dai I ystancom.lb/News/Politics/Aug/27/PSP-demand -Skaff-prove- he-did- not-sell-land- to-lran.ashx
(accessed 2011-12-01).
69 Former Members,I www.ahl-ul-bavt.org/en.php/paue,Unit6542.html
and Present Members,' 1www.ahl-ul-
baytorg/enThainne,Unit6548.html.
7() Introduction to the Ahlulbayt World Assembly,I 'Ahlulbayt Portal n Associated with the Ahlulbayt World
Assembly, Translation of http://www.ahl-ul-bait.com/fa.php/vage,1975A6254.html (accessed 2012-05-01).
A-12
100-17-52
• Former Grand Ayatollah Mohammad Hussein Fadlallah, a previous member of
ABWA S Supreme Counci1,71 was the top Shiite cleric in Lebanon and was believed to
have been responsible for attacks against Western targets, including the 1983 Beirut
barracks bombings that killed 241 American Marines and 58 French paratroopers. 72
Widely held to have been the spiritual guide of Hizballah,73 his name was included on
the US Department of Treasury, Office of Foreign Assets Control, Specially
Designated Nationals and Blocked Persons List '4 in 1995.75
• Naim Qassem, the Deputy Secretary General of Hizballah, was invited by ABWA to
speak at the opening ceremony of its 5th General Assembly meeting, held in Tehran in
September 2011. There, he claimed that the Arab Spring Euprisings originated from
the movement begun by Ayatollah Khomeini and that [The Islamic Republic of Iran
serves as a good model of Islamic governance for the entire world. ff6
Hizballah English website also highlights Naim QassemN attendance at ABWAI

General Assembly and his use of the event to praise Hizballah and its supporters:
the Resistance stopped the flow of the 'Israeli Escheme, and built a
state of popular solidarity in face of foreign tutelage as well as brought
the national powers together in Lebanon.
`With our resistance, we will retrieve our land, independence, and

dignity, and without these, we own nothing, not even life to the people
of this region, Ehe said. Sheikh Qassem reiterated that despite all the
challenges facing the resistance in Lebanon, it enjoys steadfastness and
believes that the sacrifices of the mujahideen and martyrs especially
during July 2006 paid off and resulted in the big victory against 'Israel 41
which is the first of its kind.77
71 Former Members, , www.ahl-ul-bayt.org/en.php/page Unit6542.html.

72 Hezbollah 'mentor Fadlallah dies in Lebanon, BBC News, July 4, 2010, http://wvvw.bbc.coAdc/news/10500869
(accessed 2012-08-09).
3 [Hezbollah 'mentor. Fadlallah dies in Lebanon,. BBC News, July 4, 2010, httn://www.bbc.coAdc/news/10500869
(accessed 2012-08-09); LOrand Ayatollah Fadlallah, Shiite Cleric, Dies at 75,PThanassis Cambanis, The New York
Times, July 4, 2010, http://www.nytimes.com/201 0/07 '05/world/middleeast/05fadlallah.html? r=-1 (accessed 2012-08-
09).
74 According to OFAC Ls website, the Office publishes a list of individuals and companies owned or controlled by, or
acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and
narcotics traffickers designated under programs that are not country-specific Their assets are blocked and U.S.
persons are generally prohibited from dealing with them.
5 httn://www.treasurv.gov/ofac/dovvnloads/HIsdn.pdf - The list describes him as a [Leading Ideological Figure of
HIZBALLAH
76 :Hezbollah official: Muslims power originated from Imam Khomeini, — Ahlul Bayt News Agency, September 12,
2011, httn://www.shiaunitv.com/data.asn?lang=3&1d=265029 (accessed 2012-02-02).
77 LSheikh Qassem: Resistance in Lebanon Project of Independence, Freedom and Liberation,
http://www.english.mociawama.org (accessed 2012-09-20).
A-13
100-17-53
1.1:1-r1ur r
111 ,4:+yrikr
APPENDIX B
Contents:
CRA letter to the Assembly dated July 21, 2008
100-17-54
1+1Canada Revenue Agence du revenu
Agency du Canada
Mr. Ghulam Abbas Sajan

Director
Your file Notre reference
45 Harris Way
Thornhill ON L3T 5A6 Our file Notre reference
0983205
July 21, 2008
SUBJECT: Islamic Ahlul Bayt Assembly of Canada

Formerly the Àhlul Bayt Assembly of North America'
Dear Mr. Sajan:
We refer to the correspondence dated March 3, 2007, submitted on behalf of the

Islamic Alhul Bayt Assembly of Canada (hereinafter referred to as the "Assembly"), informing
the Charities Directorate (the "Directorate") of its change in name, and seeking approval of the
amendments made to its governing documents. Our letter dated January 8, 2008, officially
recognized the Assembly's name change, and the voice mail message left by the Directorate on
February 8, 2008, indicated that a letter regarding the amendments to the Assembly's
Constitution would be forthcoming. We apologize for the delay in responding.
We have now completed our preliminary review of the Assembly's amended

objects, and must advise that it is our view that the Assembly's amended Constitution includes
objectives that are not charitable at law. The Assembly's adoption of these amended objects
raises a concern as to its continued eligibility for registration as a charitable organization under
the Income Tax Act (the "Act").1 We are therefore writing to you to seek further information
before reaching a decision as to whether the Assembly's registration as a charity should be
revoked. Our specific concerns are set out in the following paragraphs.
1. General Background
Organizations that are registered charities under the Act must continue to
demonstrate that they: 1) will operate in compliance with the statutory provisions of the Act
relating to registered charities, and 2) have been established for, and continue to operate in
Please see the Directorate's website, www.cra-arc.gc.ca/tx/chrts/prtng/chngs/prps-eng.html, for more information

on changing a charity's purposes.
TF690 E (06) Canacra.

100-04-1
-2-
support of, purposes that are exclusively charitable under common law. Since the term
"charitable" is not defined in the Act, it is necessary to refer to the principles established under
common law to determine if a particular purpose or activity is charitable.2
2. Objects and Activities
The courts have recognized as charitable those purposes and activities that: 1)
relieve poverty, 2) advance education, 3) advance religion, or 4) benefit the community as a
whole in a way which the law has deemed charitable. Please note that the fourth category only
identifies an additional group of specific purposes that have been held to be charitable at law by
the courts; it does not qualify as charitable any and all purposes that might be considered
beneficial to the public.
The courts have established that an organization can only be considered to be

advancing religion in the charitable sense to the extent that its activities advance religious,
charitable purposes and are not directed towards other purposes that are not in themselves
charitable under common law.3 The advancement of religion in the charitable sense embraces
the advancement of the Islamic faith, and the Directorate has registered, and continues to
register, organizations that advance the Islamic faith. The question we must address is whether
the Assembly's amended objects restrict it to advancing the Islamic faith in a way that can be
regarded as charitable under Canadian law.
As indicated earlier, the objects outlined in the Assembly's amended

Constitution include objectives that are broad and vague4 and appear to extend beyond what is
generally understood by the courts as the advancement of religion. For example the objectives
2 In 1999, the Supreme Court of Canada observed that "...whether an organization [is] constituted exclusively for
charitable purposes cannot be determined solely by reference to the objects and purposes for which it was
originally established. It is also necessary to consider the nature of the activities presently carried on by the
organization as a potential indicator of whether it has since adopted other purposes." Vancouver Society of
Immigrant and Visible Minority Women v. Minister of National Revenue, Supreme Court Reports (S.C.R.), 1999,
Volume 1, File No. 25359, p.40.
3Keren Kayemeth Le Jisroel Ltd. v. The Commissioners of Inland Revenue [1931] 2 KB 465 (CA), and United
Grand Lodge of Ancient Free and Accepted Masons of England v. Holborn Borough Council [1957] 1 W.L.R.
1080. See also Fuaran Foundation v. Canada (Customs and Revenue Agency) [2004] FCA 181
4It is a basic and important principle of charity law that the stated objectives of an organization must be expressed
in precise rather than broad terms, and identify as clearly as possible a recognized charitable purpose in order to
ensure that an organization does not have the legal capacity to engage in non-charitable activities. Where there is
any doubt as to whether a purpose is charitable, or where there is a mix of charitable and non-charitable purposes
and activities, the courts have determined that an organization should not be recognized as a charity. Moreover, in
Earth Fund/Fond Pour La Terre v. Minister of National Revenue, the Court observed that lajs a matter of law,
the appellant is not entitled to registration as a charity unless all of the appellant's corporate objects and
activities are exclusively charitable."
100-04-2
-3-
listed below appear to be indicative of an organizational focus that encompasses more than
observing the spiritual teachings of a religious body:
■
"No present the correct image of Shi 'a throughout Canada and the world; "
■
"No safeguard and further the religious, moral, social, and educational interests of the
followers of the Shi 'a Ithna-asheri faith, in particular the younger generation in
Canada; "
■
"Rio support activities and positions among Shi 'a with respect to cultural, economic,
and social development in Canada; "
■"[t]o collaborate and cooperate as appropriate with other religious organizations; "
and
■"[t]o assist and coordinate among existing Shi 'a centres to expand their activities and
to promote their cultural, social, and economical standing."
Generally the law has not considered objects that promote brotherhood, mutual
aid, and fraternal ties between individuals and/or groups that share a common connection to be
analogous to the advancement of religion in the legal sense; nor have such objects been
considered to fall under the fourth category of charity, that of other purposes beneficial to the
community as a whole, since they appear to be directed to the benefit of a limited section of the
community rather than the community as a whole.5
In this regard, we also note that the information available on the Assembly's
website articulates objectives that are not found in the Assembly's amended Constitution, and
which are indicative of an operational focus that is difficult to reconcile with the concept of
charity as it is understood in the common law. These objectives include:
■
"No coordinate activities and positions among Shia with respect to cultural, economic
and social development in Canada; "6 and
■
"[t]o undertake all such activities which are of benefit to the followers of the Shia Ithna
Asheri faith; "7
Indeed, based on the information available on its website, the broadness of the
Assembly's formal objectives appears to have allowed it to operate in a manner that is not
exclusively charitable, as is indicated by the Assembly's focus on "...national programs for
[the] welfare, both socio-political and economic-cultural welfare, of the Shia Community in
Canada..., "8 the Terms of Reference of its Media and Public Relations Committee,9 and the
5For example, see United Grand Lodge of Ancient Free and Accepted Masons of England v. Holborn Borough
Council, [1957] All England Law Reports [E.R.], Volume 3 [1957], pp.281-286, and Berry v. St. Marylebone
Borough Council, [1958] 1 Ch. 406; All E.R., Vol. 3 [1957], pp.677-684 (C.A.).
6
http://islamabc.org/aboutl .htm - accessed February 20, 2008
http://islamabc.org/aboutl .htm - accessed February 20, 2008

8
Please see Article 7, Section 2, Paragraph 4, of the Assembly's Constitution.
100-04-3
-4-
Assembly's stated objective of undertaking "...all such activities which are of benefit to the
followers of the Shia Ithna Asheri faith. " 1° This focus on an agenda that is wider than the
advancement of religion in its charitable sense is also indicated by the fact that other Shi'a
organizations that wish to become members must also have objectives that are of a religious,
cultural, or socio-economic nature, and that are for the benefit of the Shi'a community."
Taken as a whole, the information available on the Assembly's website, together

with its amended Constitution and by-laws, suggests to us that the Assembly may be
conducting its operations in support of a collateral political purpose. Please note that it is a
well-established principle in common law that political aims and aspirations do not fall within
the legal meaning of charity; in this regard, it is important to bear in mind that under common
law, political objects are evident, or can be inferred, not only where an organization's activities
support the aims of a particular political party, but also where its programs and activities
promote a political cause, doctrine or ideology, are directed at efforts to bring about or oppose
changes in the law, or that in general advocate for, and seek to bring about, changes in the
overall way that a society governs and manages itself.
In addition, certain Articles and Sections of the Assembly's amended

Constitution suggest to us that the Assembly's operations are carried out in adherence to, and in
furtherance of, the objectives of the Ahlul Bayt (a.s.) World Assembly.12 For example,
Objective 1 refers to promoting "...the teachings of Islam according to the school of Ahlul Bayt
(a.s.)," while Objective 11 states that the Assembly will "...defend the principles of the
AHLUL BAYT and their followers around the world." We also note that Article 7, Section 2,
Paragraph 3 of the Constitution indicates that the Assembly's Board of Directors is responsible
for approving the "...National Agenda of the AHLUL BAYT " Furthermore, a review of the
Assembly's website13 indicates that the Assembly maintains active hyperlinks to The Ahl-ul-
Bayt (a.s.) World Assembly, and to the Islamic Propagation Office of the Islamic Seminary of
9 The Media and Public Relations Committee's Terms of Reference, available on the Our News' section of the
Assembly's website (http://islamabc.org/newsl.htm - accessed February 20, 2008), indicates that it is the
Committee's mission, in part, to "...provide a unified voice to media and government in order to effectively
represent the concerns of the Shia community." Similarly, Section 2.1 of the Terms of Reference states that the
Committee's objectives are to "...build relations with all levels of government and lobby the interests and
expectations of the Shia community in particular," to"... be the media's sole point contact for Canada's Shia
community," and to "...proactively address social, political and religious issues affecting the Shia Muslims in
Canada and the world at large."
10 http://islamabc.orgjabout.htm - accessed February 20, 2008
II Article 3, Section 2, Paragraph 1
12 The Ahlul Bayt (a.s.) World Assembly's website (www.ahl-ul-bait.com/english/ABOUT-US/about us.htm -
accessed July 18, 2008) indicates that it is a non-governmental, transnational organization, based in Tehran, Iran,
that was established by order of the Ayatollah Khamenei, and registered in the Islamic Republic of Iran. The
website also indicates that the Ahlul Bayt (a.s.) World Assembly's General Assembly includes over 330 members
from 61 different countries.
13 http://islamabc.org/links.htm, accessed July 17, 2008
100-04-4
-5-
Qom, located in Qom, Iran.14 Finally, we also note that the Ahlul Bayt (a.s.) World Assembly's
website contains a report written by the Assembly,I5 and that the Assembly invited Sheikh
Mohammed Hasan Akhtai, the Chairman of the Ahlul Bayt (a.s.) World Assembly, to one of its
Annual Eid-ul-Fitr dinners.16 These organizational links add weight to our impression that the
Assembly is operating as the Canadian branch of the Ahlul Bayt (a.s.) World Assembly, an
organization whose goals and objectives may therefore be relevant to determining whether the
Assembly has been established to operate exclusively for charitable purposes.
To address these concerns it will be necessary for the Assembly to provide us

with the following documentation:
a) a detailed explanation of "...the teachings of Islam according to the school of Ahlul
Bayt (a.$)";
b) Article 2, Section 1, Objective 7, of the Assembly's amended Constitution states

that the Assembly will "...accept and/or manage charitable trusts and/or bequests
and donations, gifts and legacies from any individual or organization in
accordance with the terms of such trusts and/or bequests, so long as the terms are
acceptable to the AHLUL BAYT and the trust or bequests fall within the Aims and
Objectives of the AHLUL BAYT" Please confirm whether this reference to the
AHLUL BAYT refers to the Ahlul Bayt (a.s.) World Assembly;
c) In view of the links to the Ahlul Bayt (a.s.) World Assembly on the Assembly's
website, please provide us with a detailed explanation of what the aims and
objectives of the Ahlul Bayt (a.s.) World Assembly are, including an explanation as
to the role of the Ayatollah Sayyid Ali Khamenei, Supreme Leader of the Islamic
Revolution, in relation to that organization;17
d) an explanation of what the Assembly considers to be the "...correct image of

Shi 'a ... ", and details regarding how the Assembly plans to present this image;
14 According to its website (www.balagh.net/english/about/intro.htm and www.balagh.net/english/about/goals/htm

(both accessed July 21, 2008), the Islamic Propagation Office was established in 1979 by order of the late Imam
Khomeini, and exists for the purpose of "... reaching the fulfillment of the holy thoughts of Imam Khomeini (R.A.)
and the Grand Leader Ayatullah al-Uzma Khamenei (d)."
15"Report from Ahlul Bayt Assembly of Canada About the Eid Ul-Fitr prayer held in Toronto, Wednesday Dec.
27, 2000"; www.ahl-ul-bait.com/conferences/namazireport.htm - accessed July 18, 2008.
16
www.islamabc.org/newsl.htm, accessed July 21, 2008
17 The Ahlul Bayt (a.s.) World Assembly's website contains a biography of Ayatollah Khamenei, the content of
which suggests that the Ahlul Bayt (a.s.) World Assembly promotes the political and ideological goals of Ayatollah
Khamenei.
100-04-5
-6-
e) Article 2 Section 1, Objective 11 of the Assembly's amended Constitution states

that the Assembly will "...defend the principles of the AHLUL BAYT and their
followers around the world" Please provide us with a detailed explanation of what
the principles of the "AHLUL BAY7" are, where, and by whom, these principles
have been enunciated, and how the Assembly operates to defend these principles;
Article 6, Section 3, Paragraph 1, of the Assembly's amended Constitution states

that one of the responsibilities of the Assembly's Board of Trustees is the
"...preservation and protection of the values governing the AHLUL BAYT " Please
provide us with a detailed explanation of what the values of the "A1-11_,UL BAYT"
are, where, and by whom, these values have been enunciated, and how the
Assembly operates to preserve and protect these values;
g) a detailed description of the activities the Assembly plans to conduct in support of

each of the amended objects set out in Article 2, Section 1 of its Constitution;
h) a detailed description of how the Assembly plans to cooperate and collaborate with
other religious organizations as expressed in Objective 9;18
i) a copy of the Assembly's National Agenda for the current year and the past five
years, as referenced Article 7, Section 2, Paragraph 3 of the Assembly's
Constitution, and an explanation as to how the Assembly sets its National Agenda;
j) copies of all documents relating to all national welfare programs, as referenced in

Article 7, Section 2, Paragraph 4 of the Assembly's Constitution, that the Assembly
has introduced;
k) copies of all documents relating to the strategies set out by the Assembly, as
referenced in Article 6, Section 1, Paragraph 1, of the Assembly's Constitution;
I) more detailed information regarding the Islamic Conferences held by the Assembly.
Such information should include, but should not be limited to, a list of the names,
credentials and organizational affiliations of the various guest speakers and scholars
that the Assembly has invited or plans to invite, copies of all promotional materials
used to advertise the appearance of guest speakers as well as the seminar topics, and
transcripts and/or audiotapes/videotapes of the seminars themselves;
m) copies of any publications or pamphlets that the Assembly has published or

distributed to its members or to the public, including, but not limited to, copies of
all issues of the Right Path Magazine published over the past five years;
18 Objective 9 reads as follows: "To collaborate and cooperate as appropriate with other religious
organizations"
100-04-6
-7-
n) a detailed description of the Assembly's Public Relations project, referred to on the

'Our Projects '19 section of the Assembly's website;
o) the names, addresses, phone numbers, and occupations of the Assembly's current
Board of Directors;
p) the names, addresses, phone numbers, and occupations of the Assembly's current
Board of Trustees;
q) copies of the minutes of all meetings held by the Assembly's Board of Directors
and its Board of Trustees from January 1, 2003, to the present;
r) copies of all the research and planning done on behalf of the Assembly's Board of
Directors, as referenced in Article 7, Section 2, Paragraph 5 of the Assembly's
Constitution, between January 1, 2003, and the present; and
s) copies of the minutes of all the Annual General Meetings and other General
Meetings held by the Assembly's membership between January 1, 2003, and the
present.
3. Governance and Internal Financial Controls
We must also express our concern over the Assembly's governance structure and
its internal controls over its finances and property holdings. According to its amended
Constitution and by-laws, the Assembly's affairs are now to be managed by a seven member
Board of Trustees (the "Trustees") and a ten member Board of Directors, and while the Board
of Directors is charged with responsibility for the Assembly's day-to-day operations, it appears
that most, if not all, important decisions regarding the Assembly are made by the Assembly's
President and the Trustees. The powers of the President and the Trustees, as set out in the
Assembly's amended Constitution, include:
a) the President, who sits on the Board of Directors, also serves as the Chair of the Board
of Trustees;2°
b) members of the Board of Directors, with the exception of the President, cannot also be
members of the Board of Trustees;21
c) all immovable properties of the Assembly are to be vested in the Trustees;22
19
http://islamabc.org/Projects.htm - accessed February 20, 2008
20
Article 6, Section 1, Paragraph 8
21 Article 7, Section 2, Paragraph 15
100-04-7
-8-
d) the Trustees may exercise the powers conveyed upon them by the Religious
Organizations' Lands Act if authorized to do so by a majority vote of the Trustees;23
e) the Board of Trustees has been established to "...prevent any deviation of the AHLUL
BAYT from its Aims and Objectives, as defined in Article 2; "24
f) the Trustees are responsible for overseeing the strategies set out by the Assembly and
ensuring that these strategies conform to the Assembly's Constitution. The Trustees
are also responsible for reviewing all reports and resolutions adopted by the Board of
Directors to ensure that any action taken by the Board of Directors conforms to the
spirit of the Constitution and the values governing the Assembly;25
g) the Trustees have final approval over additions to the Assembly's membership, as all
prospective members, both individuals and organizations, must be referred to the
Trustees by the Board of Directors;26
h) the Trustees have the authority to have the Assembly's books and accounts reviewed
and audited whenever it is deemed necessary;27
i) a copy of any resolution that purports to be signed by the President and the Secretary is
considered to be sufficient evidence that such a resolution was duly passed by the
Board of Directors;28
j) any document which purports to have been certified by the President and another
Director, is assumed to have been executed in accordance with the direction of the
Board of Directors and will be considered conclusive evidence that the document is
binding on the Assembly;29
22Article 6, Section 3, Paragraph 5; this, in itself, is not problematic as a separate Board of Trustees is an
organizational structure that is recognized by the Religious Organizations' Lands Act as a body that is appointed
by an unincorporated religious organization to acquire, hold and possess land for the benefit of the religious
organization and its successors.
23 Article 6, Section 3, Paragraph 6; we note, however, that s. 6(1) of the Religious Organizations' Lands Act
states "The trustees of a religious organization shall not exercise any of the powers conferred upon them by this
Act until they are authorized to do so by resolution of the organization, and the organization may attach such
terms or conditions to any such authorization as it considers expedient." It is clear from the text of the Religious
Organizations' Lands Act that the trustees of a religious organization are to exercise their powers only when
authorized to do so by the organization for which they act as trustees, and not of their own accord.
24 Article 6, Section 2
28 Article 6, Section 1, Paragraphs 1 and 4
26 Article 3, Section 2, Paragraph 3, and Article 3, Section 3, Paragraph 2
100-04-8
-9-
k) the Assembly's Constitution and by-laws can only be amended by a joint meeting of
the Board of Directors and the Trustees;3° and
1) all internal disputes relating to the operations or administration of the Assembly will
be handled "...by means of arbitration without recourse to the Court of Law. "31
All of the above-noted provisions appear to us to be designed to ensure that

control over the Assembly's affairs and resources is tightly held by a limited group of people,
constraining the usual legal rights of the members of a charitable organization to bring about
changes in its management and administration. We note, in particular, that the Assembly has
amended its Constitution in a manner which appears intended, in the event of an internal
dispute, to deny its membership recourse to Canadian courts.
Moreover, we note that the Assembly's original Constitution, which was

submitted as part of its original application in March of 1994, does not contain many of the
clauses now found in the Assembly's amended Constitution. For example, in the Assembly's
original Constitution, the role of its Board of Trustees was limited to what is explicitly dictated
by provisions of the Religious Organizations' Lands Act; membership was open to all
individuals and organizations that adhered to the Shi'a Ithna-Asheri faith, without further
restriction; the Assembly's membership held annual general meetings; other general meetings
of the membership could be called if requested by at least ten members; and the Assembly's
Constitution and by-laws could be amended at any general meeting of the membership by a
two-thirds majority vote of the members present.
In addition to the issues we have raised regarding the Assembly's governance

structure, we must also express our concerns regarding the Assembly's internal financial
controls. For example, Article 7, Section 2, Paragraphs 6 and 19, of the Assembly's amended
Constitution indicate that Assembly's Board of Directors has the authority to "...collect
religious donations, dues, gifts, bequests, etc., from individuals or organizations without any
obligation to the Assembly, " and to "...collect religious donations, dues, gifts, bequests, etc.,
on behalf of the Board, if such representation is granted, without any obligation to the AHLUL
BAYT." We are unsure why the Assembly's Board of Directors would be authorized to collect
gifts, and potentially issue official donation receipts for such gifts, in the Assembly's name,
without obligation to the Assembly.
It is also unclear what such resources would then be used for, or even who
would be making use of them. These two clauses imply that the Board of Directors could issue
official donation receipts for gifts that may never be under the Assembly's control, and which
may, in fact, be intended for use by another entity altogether. The Board's authorization to
collect donations without obligation to the Assembly may also be in contravention of the Act, as
charitable organizations are not permitted to act as intermediaries by providing tax receipts to
donors for amounts transferred to, or for amounts used to sponsor or support the activities of,
31 Article 18
100-04-9
-10-
other organizations that are not registered charities or otherwise considered to be "qualified
donees ".32 A registered charitable organization cannot simply act as a channel or conduit
through which tax receipts are provided for donations that are intended for the use of another
organization.33
Furthermore, that the Assembly's Constitution contains two such clauses, which
make reference to two different bodies — the Assembly and the AHLUL BAYT — to which the
Assembly's Board of Directors appears to have obligations, reinforces our impression that the
Assembly is operating as the Canadian branch of the Ahlul Bayt (a.s.) World Assembly.
4. Conclusion
In light of the concerns outlined above, it is our view that the Assembly's
amended objectives do not restrict it to the pursuit of exclusively charitable goals, and that it
may have been operating in pursuit of non-charitable objectives. It is therefore our preliminary
view that the Assembly may not be eligible for registration as a charitable organization under
the Act, and that its registration as a charity should therefore be revoked.
5. The Organization's Options
(a) No response
The Assembly may choose not to respond. In that case, the CRA may consider a
decision based on the reasoning set out above, and a Notice of Intent to Revoke may then be
sent to the Assembly by registered mail.
(b) Response
Should the Assembly choose to respond, it must do so by writing to us within 90

days of the date of this letter, and its response must address each of the concerns raised above.
If we do not receive a response within the required time the CRA may then base its decision on
the reasoning set out above, and a notice of intent to revoke may be sent to the Assembly by
registered mail.
32 Within Canada, the term "qualified donee" includes only those entities defined in paragraph 149.1(1)(h) or
listed in subsections 110.1(1) and 118.1(1) of the Act, and generally refers to other Canadian registered charities or
other organizations that are similarly able to provide donation receipts for income tax purposes to Canadian
donors. Outside Canada, the only organizations that are qualified donees under the Act are the United Nations and
its agencies, certain universities outside Canada ordinarily attended by Canadian students, and charitable
organizations outside Canada to which Her Majesty in Right of Canada has made a gift within the previous two
years.
33See, for example, the recent Federal Court of Appeal decision in The Canadian Committee for the Tel Aviv
Foundation v. Her Maiesty the Queen, 2002 FCA 72, March 1, 2002.
100-04-10
(c) Voluntary Revocation
The Assembly may choose to have its status as a registered charity voluntarily
revoked. If it chooses to do so, it should inform us of its decision to have its registration
revoked within 90 days of the date of this letter. In that regard we have enclosed a Voluntary
Revocation of Registration form.
We trust the foregoing fully explains our position as it relates to the Assembly's
file.
ours sincerely,
Technical Policy Advisor

Ottawa ON KlA OL5
Attachment(s)
100-04-11
I
L141 Eirecla Revenue fiktpectratit801311U

Agency Canadg
Voluntary Revocation of Registration
To: Canada Revenue Agency (CRA)
From:
This is to advise you that

[Name of Charity and File Number]
is hereby requesting that its status as a registered charity under the Income Tax Act be
revoked.
Dated at this day of 20
Signature:
Name:
Position with the Applicant:
100-04-12
Friday, August 30, 2013
SENT BY FAX 1613-941-4401]
ORIGINAL AND ENCLOSURES SENT BY COURIER
320 Queen Street
Ottawa, ON
K1A OL5
"PRIVATE & CONFIDENTIAL"
ATTENTION:
Dear Madam:
Re: Islamic Shia Assembly of Canada

Re: Our File #
Re: Audit of Registered Charity: Islamic Ahlul Bayt Assembly of Canada
Re: Your File # 0983205
We are writing further to your letter dated April 15, 2013 to the Islamic Shia Assembly of Canada
concerning your audit of the fiscal period from January 1, 2008 to December 31, 2010.
We are enclosing the Assembly's response to your letter of April 15, 2013.
We have not been retained to act as the authorized representative for the Assembly, and are therefore not
enclosing a business consent form. Please direct all further communications to the Assembly and not to
our office.
As noted in the response prepared by the Assembly, they are still assembling various documents in order
to respond to supplement the enclosed response, but will provide these to you directly by September 10,
2013.
Yours truly,
cc: Islamic Shia Assembly of Canada

45 Harris Way, Thornhill, Ontario, L3T 5A6 Canada. Tel: 416 436 2354
Web: www.islainabe.org : info@islamabc.org.
August 29, 2013
320 Queen Street
Ottawa, ON
K I A OL5
Dear
Re: Audit of Registered Charity: Islamic Ahlul Ban Assembly of Canada
BN: 140610262 — File No: 0983205
We are writing in response to your letter regarding the audit of Islamic Shia Assembly of Canada
("ISAC") dated April 15, 2013 (the "AFL"), concerning the audit for the fiscal periods from January 1,
2008 to December 31, 2010. Through this submission we hope to address all of your concerns set out
in the AFL and provide full transparency to CRA with respect to the issues raised therein. Enclosed
with this submission are additional documents in relation to the audit. We are continuing to assemble
various documents in order to respond to the AFL. We will provide these documents to you no later
than September 10, 2013.
We appreciate the extension until August 30, 2013 to respond to the AFL provided in your letter of
June 24, 2013.
In the response. references are made to Islamic Ahlul Bayt Assembly of Canada (ABAC) and Islamic
Shia Assembly of Canada (ISAC). Both mean the same legal organization.
1. CEASED TO COMPLY WITH THE REQUIREMENTS OF THE ACT FOR ITS

CONTINUED REGISTRATION - PARAGRAPH 168(1) (b) OF THE ACT
With respect to this item, ISAC (formerly Islamic Ahlul Bayt Assembly of Canada) provides the
following information.
ISAC wishes to point out that its letter of October 18, 2008 responded to CRA concerning its objects,
which letter was not responded to by CRA. A copy of the letter is attached for your convenient
reference. ISAC requested a meeting with CRA in this letter to further address the concerns of CRA.
However, there was no response from CRA either to the letter or to the request for a meeting.
As noted in the AFL, ISAC was registered as a charitable organization effective as of January 1, 1994.
The charitable purposes of ISAC were set out in its constitution of August 24, 1993 (the
"Constitution"). On March 2, 2011, ISAC incorporated by letters patent under the Canada
11)0-23-2
Corporations Act. ISAC advised CRA that it had incorporated by letter dated September 29, 2011, a
copy of which is enclosed.
The charitable purposes contained in the letters patent are identical to those set out in the Constitution.
ISAC used the same charitable purposes as were included in the Constitution, since those were the
charitable purposes on the basis of which ISAC received charitable registration under the Income Tax
Act (Canada) (the "Act").
The Notice of Registration received by ISAC dated March 15, 1994, as noted on page 5 of the AFL,
advised ISAC that registration was granted "on the understanding that objects a) and d) and
particularly h) of the Constitution are the primary objectives of the Organization and that all other
purposes and activities are carried out in order to propagate and advance the Shia Ithna-asheri faith."
Other than reference to specific purposes in the Constitution, the registration of ISAC by CRA was
unqualified.
In this regard, at no time during the registration of ISAC was it advised by CRA that it was not formed
for exclusively charitable purposes. As such, ISAC acted in good faith in adopting the purposes set out
in the Constitution when it incorporated. Since no response was provided by CRA concerning ISAC's
letter of October 18, 2008, ISAC adopted the purposes which the Minister had registered as charitable
by the Notice of Registration dated March 15, 1994.
ISAC also notes that footnote 9 on page 9 of the AFL is highly misleading for the record. At no point
in CRA's letter dated July 21, 2008, was ISAC ever made aware that its current charitable purposes
were no longer considered to be charitable or that its registration would be jeopardized on the basis of
its current purposes.
Furthermore, in Alliance for Life v. Canada (Minister of National Revenue - M.N.R.), the Minister
took the position that the objects of Alliance for Life were not charitable. Alliance for Life was
informed by letter on April 27, 1994 that it was in contravention of the Act. The objects of Alliance
for Life had been formally adopted on November 23, 1992. The Minister had also previously
approved of the objects adopted by Alliance for Life. At no time during a lengthy period of
correspondence between the Minister and Alliance for Life did the Minister comment on the objects of
Alliance for Life. However, the Minister later took the position that the objects were not charitable.
The court stated that "In my view the respondent's approval of the appellant's amended objects prior to
their formal adoption cannot be readily ignored." Similarly, ISAC has never had the issue of its
charitable purpose raised prior to the audit, and the Minister had previously approved of the current
wording of the Charity's objects.
Nonetheless, recognizing that the activities of ISAC are somewhat different from when it was initially
registered, and that it had intended to revise its charitable purposes in any event, ISAC welcomes the
opportunity afforded by the audit to come to agreement with CRA with respect to acceptable
charitable purposes for ISAC moving forward.
Usage of property.
As detailed below, ISAC submits that the table concerning the percentage of expenses by total
expenses is not reflective of the charitable activities that it conducts.
Further, ISAC is distressed by CRA's attempt to determine what activities it conducts are religious
and which are not religious. While the AFL cites the Federal Court of Appeal decision of Fuaran
Foundation v. Canada Customs and Revenue Agency, 2004 FCA 181, which by analogy adopted the
Supreme Court of Canada's requirements for the advancement of education in Vancouver Society of
Immigrant and Visible Minority Women v. Minister of National Revenue to the advancement of
2
100-23-3
religion, no reference is made to the Supreme Court of Canada's ruling in Syndicat Northcrest v.
Amselem, [2004] S.C.J. No. 46, 2004 SCC 47. In that case, Justice Iacobucci stated that "the State is in
no position to be, nor should it become, the arbiter of religious dogma. ... Courts should avoid
judicially interpreting and thus determining, either explicitly or implicitly, the content of a subjective
understanding of religious requirement, ...[such] secular determinations ... unjustifiably entangle the
court in the affairs of religion."
In this regard, the expenses categorized in the AFL as "property and mortgage interest" should be
included in ISAC's charitable programs since the buildings are used for charitable activities for the
advancement of religion as detailed below.
Regular religious functions not requiring large space were held at each property owned by ISAC.
Currently we do not own any property and have rented a space effective January 1, 2013.Specifically,
regular religious classes and weekend religious camps are organized for youth. Every Thursday night,
prayers which are typical for the Shia called "Dua-e-Kumail" are conducted in our building. In
addition, there was and still is a library of Islamic books which those interested could refer to. The
library occupied substantial space within the building. Large functions are held at centres not owned
by ISAC because of the relatively small size of ISAC properties.
Therefore, ISAC submits that the properties were used for religious purposes and not left idle but
instead also used for planning meetings. As noted in the AFL, ISAC published two magazines (The
Right Path in English and Bisharat in Persian) and the properties were using the office for the
preparation of the articles. The cost of maintaining these buildings should be noted in the AFL as
charitable programs in line with CRA's guidance T4063 Registering a Charity for Income Tax
Purposes.
The lectures would be attended by between 10 to 30 people. The same number would apply to Dua e
Kumail prayers. For the weekend camps for the children, the attendance would not exceed 20 in view
of limited space available for sleeping purposes.
ISAC also disagrees with CRA's characterization of the Eidul-Fitr Celebration Dinner on page 9 of
the AFL that it "appears to have adopted a primarily social rather than religious objective". The Eid
dinners did have religious components for the purpose of advancing religion. There was the opening
prayer, a short lecture on different aspects of Islam, and a closing prayer. Of course, there was
entertainment since Eid is meant to be a festival of merriment and interaction. Speakers at the dinner
always spoke about the significance of the Eid. These speakers included Muslims as well as non-
Muslims. These included officials like from and
The latter has been a regular attendee and always spoke about Islam.
The fact that the Eid dinners were held a few days after Eid was for practical reasons. In this regard,
people meet at family festivities soon after Eid. Follow these family celebrations, various Islamic
centres in the GTA region hold their own programs following Eid. As such, holding the ISAC Eid
program later was to accommodate these events. It is only the Eid prayer which has to be done on the
same day. The festivities following Eid do not need to be celebrated immediately after Eid and can be
observed later. As an example, the Prophet of Islam was born on the 17th of the third Islamic month
but his birthday celebrations (Milad-un-Nabi) go on well into the fourth Islamic month.
The purposes of Eid dinners have been to educate Shia from different backgrounds concerning the
religious practices adopted by different Islamic centres. As a result, Shia Muslims of other sects are
invited, thereby enhancing religious understanding among Muslims. As well, there is also propagation
of the faith to non-Muslims since wherever possible Islamic literature is provided to the attendees.
10-23-4
The Festival of Lights in Niagara Falls is also a means of propagating Islam. By participating in the
festival together with other faiths, it gives ISAC an opportunity to promote Islam. The fact that the
idea came from a non-board member is immaterial. This was an idea promoted by this individual and
together with Hamdani Foundation; the program was carried out by ISAC. Many people travel from
Toronto and other places to see the exhibition. As such, it provides a good opportunity for ISAC to
advance its religion to multiple attendees from different faith backgrounds.
The light display which ISAC provided funds for was a symbol of Islam. The Hajj pilgrimage
involves the participants circumambulating or going around the Ka'aba which is the Qibla (direction)
for all Muslims around the world. ISAC does not agree that this clearly religious display "is part of a
tourist attraction" and is not a targeted attempt to advance religion.
The fact that there was no acknowledgement from the Niagara Falls Municipality concerning this
work is something that was not expected by ISAC. As a matter of fact, ISAC is appreciative that it did
not have to pay the full cost of the display, since the balance was subsidized by the municipality.
Therefore, all the items indicated as non-charitable by CRA are in our view charitable taking into
consideration the above submissions.
With respect to other comments by CRA concerning the Eid dinner, honouring
was to acknowledge his contributions to various faiths during his tenor as the . Again, on
this occasion he gave a talk on Islam
Eid ul Fitr celebrations were not the only religious activity undertaken by ISAC. There were other
activities as well. These include the annual Hussein Day commemoration where scholars of different
faiths speak on the grand sacrifice by Imam Hussein, the grandson of the Prophet; celebrating Milad
un Nabi; celebrating birthday of the 12th Shia Imam; Eid ul Adha (Hajj) prayers. These were held on
10th day of the 12th Islamic month. This Eid is celebrated exactly on the day. The attendance for this
celebration varies. If the Eid is on weekend, there would be over 2,000 people, otherwise the
attendance is about 1000/1200.
Although our conferences were far apart, effective 2011, these are a regular feature. There was one
held in 2011 and 2012. ISAC is planning on holding another one either late this year or in 2014.
2008 CONFERENCE
The program for the 2008 conference, from 9.00 am to 2.30 pm, included opening remarks, welcome
address and greetings from two MPPs. There was only one presentation by ISAC
thought this was included in the package. A copy of his presentation is included which indicates that
he clearly spoke on religious matters.
The workshop on marriage permitted the participants to put forward their ideas concerning marriage.
This does not mean the ISAC endorses or endorsed any of the suggestions. With respect to a comment
that may have been made by a participant about the stigma for early marriage, we believe the
statement was made by the participant with respect to the negative image of Islam that purportedly
allows or encourages child marriages. The purpose of the comment was to state this is incorrect and
the stigma related to this should be removed. It is well known by ISAC that according to the Canadian
laws, a marriage cannot take place if the person is under 16 since a marriage licence could not be
obtained for anyone marrying under the age of 16. Those who solemnize marriages are well aware of
this and ISAC has never encouraged marriage between minors contrary to public policy.
4
100-23-5
EDUCATION EXPENSE
The purpose of providing scholarships was to assist the students who could not otherwise have
afforded the fees. This was a one-time program which ISAC will not conduct again unless it is to
advance on of its amended charitable purposes. The names of the students who benefited are attached.
It was not the intention of ISAC at the time to provide third-party receipting.
HOLDING PROPERTY
The reason why the properties in Richmond Hill were held in the name of Hosseini-Nassab (in trust
for the ISAC) was so that ISAC would be able to secure mortgages. The transactions were done
through lawyers and everything was done to ensure that the properties were held by him in trust for
the ISAC. On the advice of the lawyers, there was also documentation created where his ,
, signed off to state that also had no interest in the property.
This was to make provision for the fact that in the event of untimely demise of Hosseini-Nassab, his
would not claim the property as was and has never been involved with the
Assembly as a Trustee. This agreement was in the file provided to CRA audit team but is enclosed
again for easy reference.
Hosseini-Nassab was making the payments because we were expecting to hold a fund raiser to cover
the monthly instalments. This did not take place and he continued making the payments.
With respect to Leslie Street property, we did some fund raising on an ongoing basis and were able to
pay him for the instalments.
With respect to the property at 1166 Warden Avenue, the event happened almost ten years ago and is
well outside the period under review in the audit. Again, the property belonged to ISAC, not Mr.
Ebrahimi. As well, Mr. Ebrahimi never stayed at this property. He lived somewhere in Ajax or
Pickering. The original plan, at the time of the purchase of the property, was that he would live in the
basement and pay rent which would take care of the carrying costs but this never happened since the
building was too small for carrying out two functions - religious and providing accommodation. As
such, the building has been used for religious functions as described above.
THE FUNDING OF THE PROPERTIES
The property at 60 Green Lane was purchased almost 20 years ago. With respect to the initial loan,
which was converted to donation, the monies were given as a loan but the lenders were convinced to
forego the loan so that moving forward, ISAC had funds available for carrying out its activities,
including purchase of other properties.
With respect to the funds received from Hosseini-Nassab in 2004 in the amount of $99,342, this was
from the khums that he receives as a marja (Grand Ayatullah). For your information, one of the key
doctrines of the Shia Islamic faith is that each Shia must pay a financial religious obligation referred to
as "khums". It means that a Shia must pay "one-fifth of the annual saving or profit". In practice, this is
a 20% annual financial obligation for charitable purposes based on all gains, including all income,
profits, savings, etc. Payment of khums is based on the following verse of the holy Qur'an -Know that
whatever of a thing you acquire (as profit), a fifth of it is for Allah, for the Messenger, for the near
relative, and the orphans, the needy, and the wayfarer..." (8:41)
The payment of khums for a Shia Muslim is integral to the faith. Non-payment of khums, according to
Shia Islamic laws, amounts to misappropriation of the money which rightfully belongs to the Imam as
spiritual leader. For example, if one does not pay the khums, even his daily prayers will become
invalid because the clothes that he is wearing are not legitimate — it has a portion of khums in it
10-23-6
which does not belong to him anymore. As such, if one does not observe this payment, it affects one's
faith. Accordingly, the payment of khums is a spiritual obligation for Shia Muslims, not an option.
Accordingly, Hosseini-Nassab contributed from these collections to the purchase of the property as
required by Islamic law, which restricts the use of the khums to:
I. to provide necessary expenses of the poor and needy Shia Ithria-Àsharis Muslims or for
disasters victim relief, such as earthquake, famine, flood, and war, etc.;
2. to propagate the religion of Islam to believers and non-believers;
3. to provide household and academic expenses of the ùlama' (the religious scholars) who
dedicate their life and efforts in teaching and preaching the religion of Islam;
4. to provide for religious establishments, religious schools, teachers and students.
The total gain mostly included surplus from sale of properties at 16th Avenue and Leslie Street. The
documents in this regard were in the files for 2008-2010 accounting records provided to CRA.
With respect to the Land Registry titles for the three properties, we have given the explanation above.
They were all held in trust.
Furthermore, ISAC does not understand the allegations contained in the AFL that it may not have
adhered to its obligations under the "Ontario Religious Lands Act "[sic]. Prior to incorporation, ISAC
held property through trustees as is permitted in Ontario under the Religious Organizations' Lands Act
(Ontario) (ROLA). Footnote 53 in the AFL states that the title documents "does not vest with the
required number of Trustees as required by the Assembly's 1993 or 2006 Constitution, and the title to
the property is not recorded to be held with the Assembly as required by the Ontario Religious Lands
Act [sic]". Section 2 of ROLA states that "A religious organization may acquire and hold land... in the
name of trustees, individually or by collective designation, and their successors in perpetual
succession for the benefit of the religious organization". ISAC submits that it is in compliance with
ROLA, but any non-compliance or imperfections concerning title holding are honest mistakes of law.
All of the properties were held for ISAC even if they were in the names of trustees, or if the transfer
documents did not indicate that the individuals were to be trustees. We also note that section 20 of
ROLA states that "Any instrument affecting land made by or to trustees under this Act shall be
expressed to be made under this Act, but failure to do so does not render the instrument void." As such,
ROLA itself permit imperfections concerning how title holding by a religious organization is to be
described. Further, any alleged non-compliance with the constitution of ISAC is not contrary to public
policy and can be remedied on the advice of ISAC's legal counsel. Any non-compliance with ROLA
should not be considered by CRA to be non-compliance with the Act.
ADVANCEMENT OF UNSTATED NON-CHARITABLE COLLATERAL PURPOSES
As stated earlier, if there had been a response to our letter of October 18, 2008, wherein we earnestly
requested a meeting so that all the issues could be resolved, all the issues related to the
constitution/bylaws would have been addressed long ago. The reason we continued to use the objects
from our 1993 Constitution was so that once we had discussed with CRA appropriate wording for
revised charitable purposes, the changes to ISACs purposes could have been done in a single step.
Further, in the Vancouver Society decision, the court clearly stated at paragraph 61 that "The point at
which the pursuit of ancillary activities expands into an 'end in itself is a nice question, and has been
the subject of considerable debate". There is no "bright line test" in this regard. As an example of the
Act prohibiting the furthering a collateral purpose, the Supreme Court noted that at the time, "that a
charitable organization must devote "substantially all" of its resources to charitable activities in order
to benefit from that provision's deeming of certain ancillary political activities to be charitable
activities." As well, CG-019 How to Draft Purposes for Charitable Registration provides examples of
6
100-23-7
unstated non-charitable purposes/at paragraph 43. In both examples, both collateral purposes are
inferred based upon a devotion of resources.
At no point in the AFL does CRA indicate what resources are being used to further an unstated or
collateral purpose. It is unclear how many of the below points concerning other entities constitute a
devotion of resources by ISAC to advance a collateral non-charitable purpose contrary to the Act.
With respect to the comments that ISACs aim was to become an umbrella organization, this is not
correct. ISAC encourages Shia organizations across Canada to become members of ISAC so that
Shias of Canada will work in unison. The concept of umbrella organization was loosely used whereas
what was meant was to work in cooperation with each other. Nowhere in the Act is the term "umbrella
organization" used, nor does the Act contain any prohibition that would prevent a registered charity
from operating as an umbrella organization. While CPS-026 Guidelines for the Registration of
Umbrella Organizations and Title Holding Organizations includes criteria concerning how CRA will
review applications for registration of charitable umbrella organizations, the AFL is not clear when it
states that, "it appears that the Assembly is operated to support the unstated collateral purpose of
acting as an umbrella organization". Specifically, since "umbrella organization" is not a purpose,
ISAC is uncertain of what collateral purpose CRA believes it is operating to advance. As well, CG-
019 How to Draft Purposes for Charitable Registration states at paragraph 40 that "If an
organization's activities further an unstated charitable purpose, the organization may amend its
governing document so that its activities support a stated charitable purpose."
With respect to Ahlul Bayt (a.s.) World Assembly ("ABWA"), ISAC had responded previously and
does so again that it categorically denies that it supports the operations of ABWA. More information
is provided later in this submission where ISAC voluntarily discloses that as a matter of fact ISAC
was itself victimized by ABWA.
The purpose of supporting Imam Mandi Islamic Centre was to enable the Iranian community to
organize itself as an ancillary activity to the charitable activities of ISAC.
We had no dealings with such an organization. The amount was to Imam

Mandi Islamic Centre.
The cheque was made payable to Imam Mandi Islamic Centre. The cheque was not payable to any
organization in Montreal.
The audit report goes into several pages with the respect to ABWA and includes a detailed schedule
concerning a history of ABWA. With respect to this point, ISAC wants to provide as much
information as it is able to in order to be completely transparent with CRA concerning its relationship
with ABWA.
As stated in the letter of October 2008, ISAC, categorically denies being under the control or
influence of ABWA. The fact that there was a link provided to its website (besides other Shia
organizations' websites) was, as explained in 2008, for people visiting ISAC's website to enable to
them to contact it in case they wanted some books and other literature as resource materials. This fact
does not mean that ISAC was either influenced by, or support, ABWA ISAC had also provided other
links to other Islamic organizations such as the World Federation of the Khjoa Shia Muslim
Communities and NASIMCO. There is also link for Ayatullah Sistani who is followed by the majority
of the Shias in Canada.
The two officials of ABWA, who are scholars, were invited to our function as is common with other
Islamic organizations. During the last many years, we have invited many other Shia scholars from
England, USA, and other different cities of Canada to give lectures at our events. This does not mean
ZO-23-8
that ISAC was subordinate to ABWA or endorse ABWA's view. In addition, it is not clear how
inviting scholars from ABWA constitutes a devotion of resources by ISAC that would further a
collateral or unstated purposes.
With respect to ABWA identifying ISAC as a local branch of ABWA in Canada, ISAC has no control
over what ABWA displays on its website. We continue to submit that ISAC is an independent
Canadian organization controlled only by its members in Canada. This fact was clearly mentioned to
ABWA and it had been told that ISAC cannot be part of a foreign organization.
We submit that in our view, ABWA is attempting to show that it has many branches when it does not
in order to give the impression that ABWA is international. In fact, this is not the case and we are
aware of other Shia organizations which ABWA claims are branches when in fact ABWA does not
exercise any control over them.
ISAC would like to present detailed information with respect to ABWA 's harassing attitudes in trying
to control ABAC. But before this is done, it is important to present a few background facts.
ABWA has tried to control ISAC out of jealousy. Hosseini-Nassab (HN) declared himself to be a
Grand Ayatullah (Marja = Jurisprudent). The status of Marja is high amongst the Shia and generally
carries a lot of respect. This, perhaps, was unpalatable to Akhtari, the Secretary General of ABWA,
who started creating many obstacles for ISAC because Akhtari wanted his Marja who is in Tehran to
be the religious leader of the Shia in Canada. The officials of ABWA wanted to put HN under
pressure by making problems for ISAC.
In 2011, Mr. Seyed Hassan Ojaghi Tabrizi from Iran visited Toronto. He had a meeting with }IN
whereat Tabrizi stated that he had a letter from ABWA authorizing him to take over the control of
ISAC. HN told him that he could not do it since ISAC was a Canadian charity, formed by Canadians
and only the board members, and subsequently the members, can decide its fate. Mr. Tabrizi was told
that ABWA had no authority over ISAC and the relationship between the two organizations was that
both of them were Shia organizations. Mr. Tabrizi did not like this.
He then arranged a meeting with Ghulam Sajan at the Al Huda Lebanese Centre, a director of ISAC.
The conversation was in Arabic through the means of interpreters. Tabrizi told Ghulam that he had the
authority to take over ISAC. This meeting lasted more than two hours and was a very heated meeting.
Ghulam told Tabrizi that as a starter, ISAC was a Canadian charity, governed by the laws of Canada.
Secondly, Ghulam stated that he did not know Tabrizi and was not willing to trust him. In the course
of the long meeting, Tabrizi asked Ghulam to arrange a meeting with the board of directors where he
could present his case. Ghulam told him that he would first talk to the board members and if they
agreed, he would arrange the meeting. Tabrizi was upset and stated that if such a meeting were not
held, he would complain to the beloved daughter of the Prophet, Fatima ( upon both be peace) with
respect to Ghulam's behaviour. Ghulam challenged him and asked that instead he should complain to
the Prophet himself.
The board members refused to meet with Tabrizi. The board members were not interested in a meeting
where a foreigner who wanted to get involved and take over the management of ISAC.
With respect to Ghulam's trip to Iran in 2011 to attend a conference which he was invited by ABWA,
Ghulam took the invitation in good faith, not realizing that this was a trap set by ABWA. Ghulam was
particularly keen to go because ABWA had asked him to submit a paper to be discussed at the
conference. Ghulam chose to submit a paper on micro-finance, hoping to present this at the economic
workshop. Ghulam thought if ABWA was willing to spend money in the third world to assist the
needy, micro-finance would be an ideal solution. However, upon arrival in Tehran, Ghulam found that
the conference was totally unorganized. there were no set agendas and no papers were distributed.
8
100-23-9
Ghulam participated in the economic workshop and waited for an opportunity to speak. At that point
he spoke briefly about the concept of micro-finance. A copy of a news bulletin is attached where
Ghulam is seen speaking at the conference. His paper on micro-finance is also enclosed. Several
people from Africa later spoke to him to get some ideas on how micro-financing would work.
On the last day of the conference, Ghulam underwent a very bitter experience. As noted above,
Ghulam attended the 5th Conference of the General Assembly between September 11, 2011 to
September 14, 2011. On September 15, 2013, Ghulam was to check out of his hotel room when he
received a request for a meeting from Akhtari, the Secretary General of ABWA. Mr. Akhtari
suggested that ISAC owed money to ABWA and that Ghulam was refusing to pay the loan back.
Ghulam was not permitted to leave and his passport was withheld from him. Gulam was not able to
contact the Canadian embassy in Tehran. Ghulam was only permitted to leave after he was forced to
sign a declaration under duress transferring all of the assets held in the possession of ISAC to ABWA.
Ghulam had been held against his will for six and a half hours. No funds were ever transferred to
ABWA.
Having returned to Canada, on September 24, 2011, Ghulam wrote a letter to the Ayatullah Khamenei
complaining about the behaviour of the Secretary-General and ABWA. A copy of the letter is
enclosed, together with an exchange of emails concerning this matter. The letter affirmed that ISAC is
a Canadian charity and could not be under the control of ABWA.After no response was received,
Ghulam sent a further email on October 15, 2011, again expecting justice from Ayatullah Khamenei..
On December 17, 2011, Ghulam again sent an email to officials in Iran. On the same day, Ghulam
was advised that the Secretary-General has a claim against him that is of a "judicial nature". ISAC
indicated that such claim is against the laws of Canada.
All of the enclosed emails and letters are to draw to CRA's attention and understanding that ISAC has
been and is being victimized by ABWA. If CRA continues to maintain its position that ISAC is
affiliated to ABWA, this would be a victory for ABWA because the conclusion that ISAC has a
presumed relationship with ABWA is exactly what ABWA is trying to create. ISAC categorically
denies that it is associated with ABWA, and the enclosed string of emails should show to CRA the
tension currently existing between ISAC and ABWA.
CRA states that HN was President of Islamic Centre of Hamburg (IZH) from 1999 to 2003. IZH has
been in existence for over 50 years, long before the Islamic Revolution of Iran. IZH's constitution
provides that the outgoing president would appoint the incoming president. HN was appointed in this
process and his appointment was confirmed by the German government. Amongst its Presidents were
Ayatullah Seyed Mohammad Khatemi, former president of Iran, and he does not agree with the way
the Iranian government is operating now. Another Imam of the Centre was Mr. Mohammad Shabestari
who is against the current government of Iran.
With respect to CRA's comment on page 24 about the letter ISAC provided during the audit which
was not mailed in relation to ABWA's interference with ISAC, a copy of the rough draft was sent to
CRA. ISAC does not recollect mentioning anything to the auditor about resolving the issue over the
phone. The reason there was no phone call was because we did not who, other than Ayatullah
Khamenai would be able to address our concerns. And it would not have been possible to make a
phone call to him.
Also ISAC needs to bring to CRA's the attention that it does not control who is invited by ABWA to
its conferences. While there may have been presence from Hizballah, there were also present people
who are supported by the USA, such as Dr. Jaffari and Amar Hakim.
1A-23-10
As a matter of fact, Ghulam defended Canadian public policy at this conference. Another attendee of
the conference from Quebec made a statement to the effect that Canada had surveillance mechanism
in relation to gathering information for the national census. One of the questions in the census,
according to him, was to ask for the religion of the person and this was to be used particularly to
undermine the Muslims of Canada. Ghulam challenged this statement and stated that this information
as a matter of fact, was beneficial to the minorities including Muslims. At another conference a few
years back, one of the items on the agenda was human rights. While delegates were lambasting human
rights in the west, Ghulam challenged those in the workshop to look at the human rights violations in
Iran.
Therefore, participating at these gatherings does not mean that ISAC endorses the views of ABWA or
the views of other attendees and speakers at the conference. In fact, the opposite in that the
representatives of ISAC were using the opportunity to speak about human rights abuses in IRAN.
With respect to ISAC's information being found on ABWA's website, including the Eid dinner of
2000, ABAC has no idea on how ABWA picked the information.
As noted in our letter of October 18, 2008, the logo previously used by ISAC, which includes a
tradition from Prophet Mohammad about the Shia Imams, is one of the symbols of Shias. When it was
realized that ABWA was using this logo, in order to avoid any possible confusion, ISAC changed its
logo. This common logo is comparable to the Star of David which is used by many Jewish
organizations. This logo is not owned by or is original to ABWA.
The $500 dollars from the Iranian Cultural Centre was for the sponsorship of a table at the Eid dinner.
2. Failed to comply with or contravened any of sections 230 to 231.5 of the Act.
The AFL indicated that proper books and records were not provided at the time of the audit. The use
by the Minister of paragraph 230(2)(a) of the Act was recently question in the holding of Prescient
Foundation v. Minister of National Revenue (2013 FCA 120). Specifically, the court held at paragraph
47 that:
"For the revocation of a registration to be reasonable under this ground, the Minister
must (a) clearly identify the information which the registered charity has failed to
keep, and (b) explain why this breach justifies the revocation of the charity's
registration. It is not sufficient to simply state that the charity has failed to keep
proper records. Rather, the Minister must clearly set out the particulars of the alleged
breach."
We submit that there is a positive onus on CRA under Prescient for ISAC to understand its obligations
concerning the books and records requirement under the Act. The Prescient decision also called into
question revocation on the basis of inadequate books and records, as is the case with respect to the
ISAC, when "the Minister has less drastic administrative corrective measures or intermediate
sanctions available to him, such as formal notices, compliance agreements, or the suspension of a
charity's tax receiving privileges for one year under paragraph 188.2(2)(a) of the Act." As suggested
in the conclusion of this letter, the revocation of ISAC should not be based on inadequate books and
records.
Doctrine of faith
ISAC clarified as much as it could in its letter of October 18, 2008 concerning its doctrine of faith.
The reason for providing the names of the books was so that in the event CRA wanted to know more
about ISACs faith, these books would have helped the reviewer to have greater background
1100-23-11
knowledge concerning out faith. Briefly stated, the doctrine is to follow the tenants of Islamic
according to the Shia Ithna-asheri (Jaffari) faith of Islam.
The doctrine of Shia faith includes the belief in one God; that Muhammad was his messenger and
prophet; that the prophet was succeeded by Imam Ali, followed by other 11 Imams; the last, Imam
Mandi is in occultation and will appear with Jesus Christ at a time only known to God to bring peace
and justice to the world; that there is need for propagating good and denounce evil; pay zakat for the
relief of poverty; and there will be a Judgement Day known as doomsday by others.
Documents related to the Assembly's property purchases and other related expenses
The necessary information has been provided elsewhere in the document (see part 1).
Bank Account
The bank statements for Bank of Montreal were included in the files provided to CRA. This account
did not exist at the time of the audit and ISAC overlooked to state this account, but as indicated above,
all the statements were in the files.
Records of communications/letters between ABWA and the [SAC
With the detailed submissions included, the situation should be very clear. If there is any further
clarification required, ISAC will try to comply to its best ability.
Meeting Minutes
The donation for Barn was collected from a donor to be sent to Iran for relief of the victims for the
Bain earthquake. ISAC was finding it difficult to send the money and time did lapse. Therefore ISAC
approached the donor and asked if he would agree that the funds instead be used for its activities in
Canada. Thus no funds needed to be sent out of the country for which ISAC may not have been able to
receive adequate documentations.
The reason why some of the names were not reported as directors was because their names were
mentioned as a suggestion in some meetings but they were not appointed as such.
3. Issued a receipt for a gift or donation otherwise than in accordance with the Act and its
Regulations (paragraph 168 (1)(d) of the Act)
ISAC did not understand its obligations under the Act concerning the receipts provided in relation to
the scholarships made available to the ISAC is willing to accept the
penalty of 125% of the eligible amount stated in the receipts through a compliance agreement should
the Minster determine that revocation is not warranted in this case.
We have provided the names of the students and are forwarding some more details to you tomorrow.
Therefore, should be accept the penalty at this stage or let CRA raise the issue again disallowing our
submissions?
4. Failed to file an information return as required under the Act
Fiscal Period ended December 31, 2008
• The $58.282 was collected by Imam Mandi Centre and deposited into the Bank of Montreal
account for meeting the mortgage expenses. Since this income would have been reported by
Imam Mandi, this was not included. Besides, ISAC did not issue tax receipts for these
deposits. If a correction is still required, ISAC will complete a Form T1240.
11
100-23-12
• Receipts numbers 40 and 41. This was an error.
• ISAC thought this was the best way to correct the error in 2007.
• The interest was calculated for past periods as well. This amount was included in the final
payment to HN when the property was sold. Therefore, if there are any corrections to be made
to T3010, ISAC would appreciate guidance from CRA.
2009
• The $10,580 was a genuine error and there was no attempt at misrepresentation.
• As stated above, the list comprising the names of the students is enclosed.
2010
• As indicated above, there was error in reporting the $10,580 and this was disclosed as such.
Conclusion
ISAC recognizes that certain practices during the audit period by it were not sufficient to comply with
all aspect of the requirements under the Act and regulations. Notwithstanding these past deficiencies,
ISAC submits that it acted in good faith in responding in a timely manner to the concerns of CRA as
best it was able. This is evidenced by the willingness to respond to all letters and requests for further
information put to the ISAC.
As is noted in the AFL, each of the various grounds for non-compliance with the ITA and policies of
CRA raised therein is sufficient for the Minister to exercise his or her discretion to revoke the
charitable status of the Organization. CRA's policy "Guidelines for Applying the New Sanctions"
states that, "As a general rule, the Directorate intends to start with educational methods to obtain
compliance, and then move progressively through compliance agreements, sanctions, and the ultimate
sanction of revocation, if necessary." Admittedly, the policy also states that "in serious cases of non-
compliance, we are prepared to move directly to a sanction or revocation." CRA states that examples
of such serious non-compliance are:
• the organization has a previous record of serious non-compliance, and the current form of non-
compliance is both serious and intentional;
• the non-compliance has resulted in a substantial adverse impact on others (beneficiaries, donors,
or funders), particularly where the organization cannot or will not remedy the harm done; and
• the organization cannot or will not bring itself into compliance.
In this regard, while in the opinion of CRA, ISAC, is currently in non-compliance with the Act, it is
not intentional, and ISAC has had no previous record of serious non-compliance. In addition, ISAC
has never intentionally contravened the provision of the Act and has always expressed its willingness
to bring itself into compliance with the Act. Lastly, ISAC, beneficiaries, donors, or funders have not
been adversely impacted in any way by the purported non-compliance of ISAC. We submit that the
more appropriate remedy is to have ISAC enter into a Compliance Agreement with CRA, which is is
willing to do, or pay a penalty in accordance with a notice of Penalty in the manner described in
subsection 188.1(9) of the Act.
Should CRA have any further concerns, ISAC would request the opportunity to address these
concerns by further written communications.
12
100-23-13
Dated: August 29, 2013
Submitted by:
Islau~ic S Assembly of Canada
Per: S
Crhulam Sajan, Secretary-Treasurer
1U-23-14
45 Harris Way, Thornhill, Ontario, Canada, L3T 5A6. Tel: 416 436 2354
Web: www.islamabc.org e-mail : info@islamabc.org
September 29, 2011

320 Queen Street
Ottawa
K 1 A OL5
Dear
Re: Registration # 140610262 RR0001
I refer to our conversation of a few days back when you informed me that you plan to do an audit
of our charity. At that time I informed you that we were now incorporated and that we were
having a General Meeting on September 18, 2011 to formally approve the by-laws as approved
by Industry Canada.
As asked by you, enclosed please find a copy of the by-laws as approved by the membership.
There were two minor changes made by the membership which have been notified to Industry
Canada. These changes are incorporated in the attached by-laws.
We were also informed by Canada Revenue Agency that our business number is now changed to
85183 4887.
Please let me know if we need to change the number on donation receipts to show the new
number or should we continue with the old number. If we are to use new number, is there any
"RR" number.
Ghulam Sajan
Director
100-23-15
I 21):', 0 I.cslic Strcn. Richmond 11111. Ontario. 1.4E Canada. 1005 ) 702 0767
Wch: wA\ .isiamabc.orcz : Mr() isi2imahc.or2
Please send your response to:

45 Harris Way, Thornhill, Ontario, L3T 5A6
October 18, 2008
File # 0983205
Technical Policy Advisor

Ottawa, Ontario, K IA OL5
Dear
Islamic Ahiul Bayt Assembly of Canada

Formerly the Ahlul Bayt Assembly of North America
We refer to your letter dated July 21, 2008 in response to our letter dated March 3, 2007.
It has taken us a while to respond, because of the summer holidays which was followed
by the holy month of Ramadhan.
However, during the preceding sixteen-month period we contacted your office several
times to find out the status on our revised constitution. We were informed that the officer
reviewing the original draft was no longer in the Charities Division and someone else was
looking into it. We were to get your response by December 2007, which was
postponed, to February 2008 and finally we got your response in July 2008.
The reason why we were so keen on getting a response was that we wanted to get your
valued input before we started acting under the "new" constitution.
We had made it clear to all concerned that nothing would be done to implement the new
constitution until we received clearance from CRA. Therefore, right up to this time we
have not implemented any of the provisions of the new constitution.
We would now respond to your various queries.
1. General Background
We appreciate your guidance.
100-23-16
2. Objects and Activities
So far our activities have been limited to advancement of religion. With respect to the
examples quoted by you, our responses are as follows:
• (t)o present the correct image of Shi'a throughout Canada and the world.
We do not understand what the objection is. This aspect would fall under the
education part. However, if your concern is with respect to the world, the intent
was the information would be available to the world through the Internet or our
publications when available. Under the existing climate of Islamophobia and the
negative image of Islam being portrayed, it is necessary as part of the objective to
promote the teachings of Islam, that we remain mindful of the correct teachings of
Islam.
• (t)o safeguard..... This was in the old constitution.
• (t)o support activities and positions among Shi'a with respect to cultural,
economic, and social development in Canada.. We thank you for drawing our
attention to the fact that this objective would be considered broad and vague and
therefore not charitable. Accordingly, we will remove this objective from the
constitution.
• (t)o collaborate and cooperate as appropriate with other religious
organizations. This was in the old constitution. The intention here is purely to
work with other religious organizations in matters of interfaith dialogues and
promoting harmony and understanding between peoples of various faiths.
• (t)o assist and coordinate among existing Shi'a centres to expand their
activities and to promote their cultural, social and economical standing.
Please confirm that if the last 13 words were replaced by "for religious and
educational advancement", this would be in order.
The information which was on the website was old and should have been removed. This
has now been done.
Again, with respect to your comments on the Terms of Reference for the Media and
Public Relations Committee, this has not been implemented. Our only objective in
respect to media and public relations are to:
• build relationship with the media so that we would be one of the contact persons
with respect to issues concerning our faith and its advancement. We would
provide the necessary information and be an available resource.
• Provide information on Islam to various other groups such as the governments,
research groups, etc.
In all events we will also want to be pro-active in providing the necessary information
before Islam is maligned as is being done now which has resulted in the coinage of the
term "Islamophobia".
100-23-17
With respect to your comment (top of page 4), "all such activities which are of benefit to
the followers of the Shia Ithna Asheri faith", please note this is our objective (j) and is in
our previous constitution and has been in the context of advancement of our faith.
Therefore you are raising a question on a matter, which is 14/15 years old. We will
appreciate your clarification. Are you suggesting that we should, perhaps, clarify this so
that the context is better appreciated?
We reiterate that we are not a political organization, have no design on being involved in
politics beyond what is strictly allowed by law and do not want to support any political
cause. Any concern that we may have will be related to our faith.
With respect to your next paragraph, it seems that we need to clarify the words "Ahlul
Bayt". There are over 200 million Muslims in the world who are the followers of Ahlul
Bayt. Ahlul Bayt means the household. Over period of time the words have been
confined to the household of Prophet Muhammad (peace be upon him & his family).
The Shi'a are known by several names as follows:
• Shi'a. This is the common usage.
• Shi'a ithna-asheri. This means followers of the twelve. Accordingly we are
known as the twelver Shi'a.
• Jaffari. The Shi'a split into two sects after the sixth Shi'a Imam whose name was
Jaffar. Those who continued in the name of his designated son, Mussa4 are
known as Jaffaris. Those who followed his other son (who had died during the
Imam's lifetime) are known as the Ismailis. The principal groups in the Ismaili
sect are the "Ismailis" (followers of the Aga Khan) and Bohras (whose leader is
based in India).
• Followers of Ahlul Bayt, the Prophet's household.
Therefore, all the four terms mean exactly the same. The fact there is an organization
"Ahlul Bayt (a.s.) World Assembly" in Iran does not mean that we are a branch of it or
have any direct connections with it. We have provided a link to their website simply for
the Shi'a and others interested to be able to access any information about them. While
we have provided a link, we have also provided links to other sites like the site for
Ayatullah Sistani. The Islamic Propagation office has useful publications which readers
can obtain directly.
We had invited Mohammed Hasan Akhtari to visit us for our Eid dinner. Unfortunately
he got his visa the day after the event. He was to visit as a guest. Many other Islamic
scholars are invited by various Shi'a and Sunni organizations as we did. In addition,
many other religious organizations invite people from their faith from different countries
as did we. The invitation in no respect implies that he has or had any say in the
operations of our organization. Islamic Ahlul Bayt Assembly of Canada is a totally
independent organization. Mr. Akhtari was to be our guest only.
Your note 12 also indicates that the World Assembly is a non-governmental organization
established by the order of the Ayatollah Khamenei. Please note, that Ayattollah
Khamenei, similar to Ayattollah Sistani is also a spiritual leader for many Shia around the
100-23-1S-
world. In Canada, an overwhelming majority holds Ayatullah Sistani as its spiritual
leader. There are some who follow Ayatullah Khamenei and there are others who follow
several other Ayatullahs in Iran, Iraq and Lebanon as their spiritual leaders.. Currently,
there are around 12 eminent Ayatullahs in the world. The Shi'a are at liberty to choose
any one of them as their spiritual leader. In every congregation one would come across
followers of several ayatullahs and this is accepted as normal. Please also note that at
any given time there are thousands of ayatullas but the eminent ones are a few. In Islam
there is no priesthood. Therefore, the Shi'a are free to follow or not the religious rulings
of the ayatullahs unlike Christianity and Judaism.
With respect to your questions from page 5 onwards, our responses are as follows:
a) The detailed explanation with respect to the teaching of Islam according the
school of Ahlul Bayt has been provided above. For more information, please
refer to following, which comprises a small sample of writing from different parts
of the world, including non-Muslims:
• "The Voice of Human Justice" — by George Jordac, a Lebanese Christian
• "Islam and Religious Pluralism" by Ayatullah Murtaza Muthahhari,
Canadian ISBN 0-9733622-2-7 (Iranian author)
• "Hajj Reflections on its Rituals" By Ali Shariati, ISBN 1-871031-03-06
(Iranian writer)
• "A Shiite Creed" by ash-Sheikh as=Saudi published by World
Organization For Islamic Services, Tehran, Iran.
• "Shiite Islam" by Allamah Sayyid Muhammad Husayn Tabatabai (Iranian
writer)
• "The Origins and Early Development of Shi'a Islam" By S. Husain M.
Jafri (Pakistani) ISBN 0-582-78080-2
• "Imamate" — by Sayyid Saeed Akhtar Rizvi (Indian)
• "Then I was Guided" by Muhammad al-Tijani al-Samawi (Morrocan)
• "Imamate and Leadership" — Sayyid Mujtaba Musavi Lari (Iranian)
BP222.M87.04952
• "A Shi'ite Anthology" by Allamah Tababtabai, translated by William
Chittick (British or American) — ISBN) 9506986 o I
• "Shi'i Islam, Origins, Faith & Practices" by Mohammad A Shomali
(Iranian) ISBN 1 904063 11 X
• "Shiite Islam: Orthodoxy or Heterodoxy" Luis Alberto Vittor (South
American) ISBN 964 438 842 9
• "Nahjul Balagha — Peak of Eloquence" by Imam Ali ibn Abu Talib, the
First Shi'a Imam, comprises sermons, letters and sayings. It also gives a
brief biography of our first Imam. ISBN )-9400368-43-9
A bibliography prepared by Ali M. Aliabadi in 1990 is attached. It is obvious
that since then many more new books have been written, some of which have
been listed above.
b) This does not refer to the Ahlul Bayt (a.s.) World Assembly. It refers to our
organization.
100-23-19
c) The link has been provided as explained above. Since we are not members of the
World Assembly of Iran, we are not concerned with their aims and objectives.
The information available to us is what is on their web.
d) The correct image of Shi'a is as described in the above books rather than what is
portrayed by Islamophobes. It would be provided by being pro-active once we
are really organized. Currently, we are only having some lectures, Eid dinners
where we invite non-Muslims, non-Shi'a Muslims, people in public life. We used
to publish a magazine "Right Path" until 1999 but in view of pressure of work on
the person in charge, we have not been able to publish the magazine. Hopefully,
we will do it soon.
e) The defend, etc would be through positive approach. We now believe that this
was an unnecessary objective and will be removed.
f) Again, this article will be removed for it does not add to anything we would
actually be doing.
g) We believe that we have provided the information on the various activities. If
there is any that you feel that we have not addressed, we would be glad to deal
with the same.
h) This objective was in the old constitution. This is a slow process. The
undersigned belongs to an interfaith group based in Thornhill, Ontario (Mosaic
Interfaith Group). Asking people from different faiths to get together is a difficult
and slow task. After 30 years, Mosaic has achieved very little. For Ahlul Bayt, at
this point in time our interfaith is through the Eid dinner and Eid prayer where we
invite non-Muslims. Our desire is that non-Muslims and Muslims would relate to
each other at these gatherings, try to understand each other and thereby attempt to
have religious harmony in Toronto. In addition, through the Mosaic, we would
visit various religious centres in Toronto as part of interfaith meetings.
i) A National agenda has not been developed and will not be developed until this
constitution is finally approved by CRA.
j) This also has not been done.
k) This also has not been done. All this would indicate that while we are ambitious
and want to do a lot to advance our faith, we are limited by the resources available
to us.
1) The gatherings that we had were small other than the Eid dinners and Eid prayers.
Only recently, on May 18, 2008 we had a one-day program. In the morning there
was a talk on the Condition of the Muslims and in particular that of the Shi'a in
Canada. In the afternoon we had workshops. Various Shi'a organizations across
Canada were invited. There were almost 200 participants. There were no audio
or video taken.
m) The last publication of Right Path was in 1999. This will be the only publication
for the foreseeable future and that also if we are able to get a team going.
n) Nothing has been done
o) The names are as attached.
p) The names are attached. However, please note that they have not acted under the
"new" constitution since it has not been implemented.
100-23-20
q) Copies are attached for the Board of Directors meetings. Since the Trustees have
not been active under the "New" constitution, no minutes are available.
r) No research has taken place
s) Since we have not expanded our membership, no AGMs have been held.
3 Governance and Internal Financial Controls
The prime reason for giving additional powers to the trustees was to ensure that there are
no misuses or abuses. The trustees were to act as additional safeguards.
However, if our provisions are overbearing on the role of directors and members, we
would delete most of the powers of the trustees if you confirm that these are contrary to
CRA requirements, interpretations or expectations.
However, with respect to (i) and (j), we believe these are common and standard items in
most constitutions and even in by-laws of various corporations..
And with respect to item (1), although we do not expect any disputes, the mechanism is to
resolve the disputes in a speedy manner. Besides, both the parties are appointing their
representatives. And this process is cost effective.
We will appreciate it if you would kindly confirm that internal controls indicated by us
are ultra virus CRA requirements.
Your comments re: Article 7, Section 2, paragraphs 6 and 19. These are erroneous. The
actual objective 7 under article 2, is what it should be. However, the intent behind
"without obligation" was that these bequeaths will be unconditional or with such
conditions that Ahlul Bayt would not be willing to accept or fulfill.
In response to your comments in paragraph 2 on page 10, we categorically deny that we

are a Canadian branch of Ahlul Bayt (a.s.) World Assembly. Having explained what
Ahlul Bayt means, this should be clear to you.
Incidentally, if a google search of the Ahlul Bayt in the many languages of the world and
many spellings were made, it would show that there are hundreds of thousands of
organizations using these words.
We take this opportunity to thank you for your detailed letter. We hope we have
provided sufficient clarification. However, if there is more information required, we
would be willing to provide the same.
100-23-21
We would want to make one request. For many years we have not done what we wanted
to do. Our new constitution was meant to take us there but we realize the new
constitution has created its own hurdles. Fortunately, we have not implemented or taken
any action beyond what we used to do many years ago. We want to move forward.
Therefore, we would very much appreciate the opportunity of having a meeting with you
so that all outstanding matters may be discussed and resolved and we can move forward.
With best regards
Ghulam Abbas Sajan

Director, Islamic Ahlul Bayt Assembly of Canada
100-23-22
ISLAMIC AHLUL BAYT ASSEMBLY OF CANADA
BOARD OF DIRECTORS
Syed Reza Hosseini-Nassab, President,
Sheikh All Sobeti, Director
Ghulam Abbas Sajan, Director
Mohamed Chakaron, Director
Fatima Ali, Director
TRUSTEES
Syed Reza Hosseini-Nassab
Syed Muhammad Rizvi,
Atta Hussain,
Syed M. Zaki Baciri
100-23-23
NAMES OF THE STUDENTS WHO GOT FEE SUBSIDIZES
I.
2.
3.
4.
5.
6.
7.
8.
100-23-24
100-23-25
https://
100-23-26
3
100-23-27
htt ps:
100-23-28
100-23-29
htt
100-23-30
100-23-31
100-23-33
100-23-35
100-23-36
100-23-37
100-23-38
100-23-39
41
18
100-23-42
Uutlook Print Message Page 1 of 1
100-23-43
ouuooK runt message rage i or
100-23-44
0-23-45
100-23-47
100-23-48
Outlook Print Message Page 1 of 1
100-23-49
outlook Print message Page 1 of 2
Outlook Print Message
(Jou ook PrInt Message Page I of
100-23-52
Outlook 1'nnt Message rage I of
100-23-54
Outlook Print Message Page i of 2
Outlook i'nnt Message Page 2 of 2
100-23-56

ISAC

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

ISAC

Загружено:

Авторское право:

Доступные форматы

Canada Revenue Agence du revenu

Subject: Notice of Intention to Revoke

Dear Mr. Mojtahedy:

We have now reviewed and considered your written responses dated

Canada R350 E (08)

Notice is hereby given, pursuant to paragraphs 168(1)(b),168(1)(c),

Business number Name

Tax and Charities Appeals Directorate

Notwithstanding the filing of an objection, a copy of the revocation notice, described

A copy of the relevant provisions of the Act concerning revocation of registration,

As of the effective date of revocation:

allowable as tax credits to individual donors or as allowable deductions to

c) the Organization will no longer qualify as a charity for purposes of

Notice of Intention to Revoke

• CRA position on representations

COMMENTS ON REPRESENTATIONS OF AUGUST 30, 2013

Below please find:

1.1 Failure to demonstrate that it is constituted for exclusively charitable purposes

CRA letter dated July 21, 2008.

4 Alliance for Life v. Canada (Minister of National Revenue)11999] F. C. 504.

B. Festival of Lights Activity

We also identified other problems regarding the Organization's handling of property

• The Organization appears to have disregarded its obligation to adhere to the

■ 60 Green Lane, Thornhill, ON, L3T 7P5, 1994 — 2000;

G. Advancement of unstated non-charitable collateral purposes

Support the operational goals of ABWA

The Organization's Representations

B. Festival of Lights Activity

21 See Organization's Letter dated August 29, 2013.

G. Advancement of unstated non-charitable collateral purposes

Support the operational goals of ABWA

22 As outlined in CRA's letter of July 2008.

A registered charity is permitted to undertake a limited amount of activity that is ancillary

B. Festival of Lights Activity

The Organization's representations and information submitted in support of the conference do

Purpose b, Letters Patent

The Organization failed to provide any information on the media workshop.

ii. Third party involvement in the purchase of property

Warden Avenue Property

The Organization's representations raise questions as to why it would have listed

16th Avenue and Leslie Street Properties

. According to the Organization's representations, ABWA officials were adamant

Mortgage fraud occurs when someone deliberately misrepresents

...Borrowers who misrepresent information and straw buyers who allow a

G. Advancement of unstated non-charitable collateral purposes

As noted in CPS-026, a charitable umbrella organization is one that works to achieve a

• Assist other registered charities;

ii. Support the operational goals of ABWA

Relationship between the Organization and ABWA

The government of Iran appears to exert a high degree of influence

ABWA maintains ties with Hezbollah, an organization listed as a

We acknowledge that there appears to be conflict between some of the Organization's

Support for the Operational goals of ABWA

ABWA s news agency identifies the Organization as a branch

Spread of the Iranian revolutionary ideology in Canada

ABWA's involvement in the Organization's affairs

ii. Organization's Declaration to ABWA — dated 2011-09-15

iii. Organization's meeting with ABWA representative, Sayyed Hassan Tabrizi

The Organization's directors attend ABWA conferences

ABWA's logo on the Organization's website

Funding from the Cultural Centre of the Republic of Iran

As noted in our previous correspondence, ABWA is identified as a department of the

Because of ABWA's strong political agenda and direct affiliations to the

2. Issue 2: Failed to comply with or contravened any of sections 230 to