The Anti-terrorism Act

OUTLINE OF THE CHARITIES REGISTRATION (SECURITY INFORMATION) ACT

The Anti-terrorism Act enacted the Charities Registration (Security Information) Act (CRSIA) to suppress and prevent support for terrorism and to protect the integrity of the registration system for charities under the Income Tax Act.

CRSIA makes possible the use of classified information in determining whether organizations can register as charities under the Income Tax Act or whether, previously having been registered, they can retain this status. Before the passage of CRSIA, all decisions on charitable registration were subject to appeal in an open court, and thus only information that could be disclosed publicly could be used in reaching these decisions.

CRSIA allows the Minister of Public Safety and the Minister of National Revenue to issue a certificate stating that, based on the security or criminal intelligence information before them, it is their opinion that there are reasonable grounds to believe that an organization has made, is making or will make its resources, directly or indirectly available to a terrorist group. Once signed, the certificate is automatically subject to judicial review before the Federal Court with the affected organization being given a summary issued by that Court, of the information available and the right to defend itself in a hearing before the judge.

Description of and Rationale for the Anti-terrorism Act provision:

Canada needs to comply with international obligations requiring countries to ensure that non-profit organizations are not misused by terrorist organizations. The legislation also sends a strong message that Canada will not tolerate the abuse of its charitable sector.

Existing Income Tax Act provisions will often be sufficient to bar an organization from registration, but CRSIA represents a prudent reserve tool to meet the case where classified information is needed to establish an organization’s support of terrorism. Although no certificate has been issued to date, other CRSIA provisions are in active use - those allowing for the exchange of information between agencies.

CRSIA has checks and balances built into it. In enacting CRSIA, Parliament introduced a procedure that strikes a reasonable balance between competing interests of the individual and the state. Firstly, two Ministers (which also implies their separate departmental and legal advisors) have to independently come to the conclusion that a certificate is justified. Parliament further places the responsibility of reviewing the reasonableness of the ministerial certificate on an independent member of the judiciary (Federal Court of Canada) and accords the judge the ability to examine the security or criminal intelligence information, to hear evidence, to issue a summary with a view to permitting the charity to be reasonably informed, and to provide the charity with a reasonable opportunity to be heard. Also, a charity may apply for an order directing that its name not be published or broadcasted except in accordance with the CRSIA and that documents filed with the court be treated as confidential.

CRSIA does not directly impose any new burdens on charities, such as increased reporting requirements. Nor does it suddenly make supporting terrorism a new basis for de-registration. Registration has always required an organization to abstain from pursuing criminal or political purposes, and to exercise due diligence in ensuring all of its resources are put to good charitable use. Charities have been obliged to monitor whether they could possibly be supporting a terrorist group, but this is the same obligation that falls on all Canadians, including Canadian businesses.

Updated to April 1, 2008.