An Oil Sands Industry lobby group is calling for Canada Revenue Agency to look into Tides Canada's compliance with the country's charity laws.
EthicalOil.org is urging the C.R.A to review and possibly revoke Tides Canada's charitable status stating they have been abusing their special tax subsidies, accusing the organization of laundering money from donors into political operations, like PETA.
By law, all charities are allowed to devote 10 per cent of their total resources, including money and volunteers, to political advocacy as long as the activity is part of the charity's overall purpose and is not partisan, favouring a particular political party or candidate.
The federal budget announced in March included new rules and sanctions for charities involved in political activities. The budget did not change the 10 per cent rule, but it did go after politically active charities in other ways.
For example, the budget increased sanctions on charities that do not comply with the advocacy regulations, and it announced an $8-million special audit by Canada Revenue Agency to see if charities are adhering to the 10 per cent limit.
The budget also announced restrictions on how charitable foundations fund political activities by other organizations and it introduced new reporting rules for charities that use foreign donations to fund these activities.
The Executive Director of EthicalOil.org, Jamie Ellerton, says Tides Canada's practices suggest they are political to their core, prompting the need for an investigation by The Canada Revenue Agency to review and possibly revoke Tides Canada's charitable status.
Tides Canada has yet to respond to comment requests from Fort McMurray News.