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JNF-Canada responds to CRA decision to revoke its charity status
(Posted August 30, 2024) We have been attempting to provide full information as to the ongoing situation in which the CRA has revoked JNF-Canada’s charitable status. Elsewhere on this website you can read stories that outline what has happened.
On August 28, JNF-Canada sent an email to supporters in which it provided a rigorous defence against the decision by the CRA to revoke its charitable status.
Here, in full, is what that email contained:
| Dear JNF Supporters, We thank you for your continued support and attention during this ongoing matter. The number of kind calls, texts, and emails to our offices have been overwhelming. Todah Rabbah. The following is JNF’s official response to the claims made in the CJN. The most upsetting thing about the article is that it plants doubt in our supporters minds. Your generosity and support is not something we take lightly, and keeping your trust is our #1 priority. Thank you for taking the time to read it and as always, we welcome any questions or concerns you might have. In the coming days, we will also be releasing additional documentation that we have submitted to the CRA to further explain JNF’s position. We believe we have a strong legal case, have more than demonstrated cooperation and compliance with CRA, and we are proud of what we have achieved in Israel and across Canada thanks to you – our donors and supporters. You can also read the following statement on our website. |
| JNF Canada’s Official Response to CJN 15+ Million Trees is No Gimmick We wish to respond to the recent coverage in the CJN with respect to our multi-year battle with the Canada Revenue Agency (CRA). It is time to set the record straight. Although JNF was in regular contact with the CJN reporting team prior to the publication of the article on the history of our relationship with the CRA, we were never asked for our views on critical issues raised in the article. Furthermore, the behaviour of the CRA or their findings, are never questioned or criticized. Rather, it assumes that the CRA is righteous and just, and JNF is the guilty party. Not surprisingly, this leaves the readers with a one-sided and unbalanced impression. A few issues raisedDue to human error, we provided the CRA with documentation on the wrong psychiatric hospital project. We annually oversee funding for multiple projects and at the time, we were supporting two psychiatric facilities in Jerusalem. A phone call would have quickly resolved the matter.Hebrew is the language of work in Israel, the language in which we receive 100s of documents, and a language our leadership can read and work in. While there is no law that requires documentation to be submitted to CRA in English or French, we should have translated certain documents to make it easier for the CRA to review. Again, a phone call would have resolved the matter quickly.A statement from a staff person that trees are simply a marketing trick – what? JNF has planted 15+ million trees over the decades – that’s in no way a “gimmick”. It’s integral to our entire organization and we are proud of this work.And still, these are periphery issues in the matter of our revocation. The CRA revoked our charitable status without a fair process even though we have addressed their principal concerns. Fundamentally, CRA is questioning our charitable objects and therefore our charitable activities in support of the people of Israel. |
| The JNF-CRA Relationship The CJN misconstrues the nature of the timeline between the CRA Charities Directorate (“CD”) between 2014, the year the auditors came, and August 10, 2024, the date of revocation. The CJN article says that the CD, for example:“lost patience”“had known for years … major concerns with how the Charity operates”“warned them again in 2023 and in 2024”“warned repeatedly to clean up its act between 2016 and 2023”The entire CRA-JNF relationship was based, rather, on the premise of investigation/prosecution/sanction. This approach is in accordance with provisions of the Income Tax Act (ITA), read literally, but is not in accordance with CRA official guidance and not in accordance with the treatment afforded to almost all other charities. There were no “repeated warnings”. There were repeated accusations, all of which were addressed by JNF. Over the course of the 10-year process, CRA refused on more than 10 occasions to meet with JNF representatives. Throughout, CRA simply threatened revocation, rejecting all of JNF’s requests to discuss solutions in person. Furthermore, evidence suggests that CRA took a position in the process prior to even conducting the actual audit. As early as 2013 a representative of CRA said to the CRA audit team that the campaigns and complaints of JNF’s detractors provided “excellent background about the Charity…and a view of potential areas of concern for the current audit.” It was not until JNF obtained access to CRA’s heavily redacted audit file in July 2021 that JNF learned of the extent of the role of its detractors in the audit and sanction process. Interestingly, the redacted materials fail to divulge the fact that JNF’s most vociferous detractor had submitted over 100 pages of writing to the Director of the Charities Directorate (CD) and had actually met with him in October of 2017. This fact was only discovered by JNF in August 2024. Why did the Director of the CD meet with a major detractor, and not understand that it was therefore incumbent upon him to meet with representatives of JNF? Instead, there was unrelenting determination to revoke JNF from the outset, due almost entirely to the CRA’s apparent but unexpressed view that JNF was entirely subservient to Karen Kayemeth Le’Israel (KKL), and therefore that it did not undertake any independent operations. All of the detractors have taken this view. None accord JNF any existence or integrity independent of KKL. We point out that, to address this, we have reduced the number of our projects with KKL, entered into a robust compliance agreement with them, and changed the way that KKL describes its relationship with our charities on its website. KKL works for JNF Canada, just like any other agent that we utilize. (The term “agent” is CRA nomenclature. If a charity is doing work in a foreign country, they need an agent to assist with their charitable work.) JNF’s leadership selects the projects we wish to support, and we always have direction and control over all of the funds, as we only reimburse expenses upon receipt of valid expense reports. In short, we have addressed the CRA’s concerns. In summary, this was a vigorous prosecution from Day 1. There was no discussion afforded to us. Rather, there is evidence of the CRA’s determination to reach a result of revocation from the outset, and there is a reasonable apprehension of bias based on the above and other documents that we obtained through our access to information request. CRA Guidance The CRA’s own published guidelines for applying sanctions highlights the irregularity with respect to the treatment afforded to the JNF. “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.” Only in cases of “aggravated non-compliance” does CRA decline to follow this approach. CRA has never alleged or maintained that JNF was guilty of “aggravated non-compliance.” There were no educational methods presented nor was there any effort on the part of CRA to develop a compliance agreement. The question for CRA is why it abandoned its own guidance, and whether the detractors played any role in that decision? “Repeated warnings” The recent CJN article mentions a 358-page document. The 358 pages is actually several documents. The sequence of messaging in the documents is not “repeated warnings” – it is CRA’s position repeated several times, in a process in which JNF offered a vigorous defense. CRA actually abandoned several arguments including those related to KKL, as well as to projects on disputed territories and projects situated on IDF land. Nevertheless, we made changes even though we disagreed with the CRA’s legal reasoning. There are several other documents, from both sides, subsequent to the 358 pages of documents. JNF’s full position is stated in multiple submissions, most of which, unfairly, are not referred to in the CJN article. JNF’s last submission of October 2023 is over 90 pages long. JNF presented a detailed and well reasoned legal argument based on dozens of precedents prepared by an eminent lawyer, and CRA’s response did not address these issues at all. The CRA letter of July 2024 purports to deal with the arguments raised in our October 2023, but fails. Our position was ignored. “One last chance” The CJN claims that the CRA gave JNF “one last chance.” The timing and the legal logic are incorrect. JNF had a legal right to object to CRA’s ‘notice of intent to revoke’ letter of August 20, 2019. There is no discretion or power in the CRA to “give” a charity ‘one more chance’. JNF prepared a Notice of Objection to CRA’s notice, on October 18, 2019, and requested that CRA provide JNF with its whole file, as it had a legal right to do. CRA provided a heavily redacted file on July 21 2021, 18 months later. JNF prepared two further submissions as part of this appeals process, the second of which was submitted on December 17, 2021, after it had had a chance to review the heavily redacted file. CRA provided its response to JNF’s appeal in a letter dated July 26, 2023, another 18 months later. JNF responded in October 2023 with its 90-page letter. There was no ‘one last chance’ and the origin of CJN’s February 2023 date is a mystery. Three full years of the delay were caused by CRA. The CJN article makes it appear as though JNF never responded to ‘warnings’ and that the CRA, out of the sheer goodness of their collective hearts, gave the truant ‘one last chance’. The exact opposite is true. We have responded to all of their communications, addressing their concerns or expressing our objection of their position. It’s worth adding that each CRA letter in the process dropped significant arguments that had been sufficiently refuted by JNF, despite their unrelenting drive to revoke JNF’s registration, contrary to its own guidance. Improvements since 2016In 2016, JNF Canada retained legal counsel who has not only represented us to CRA but has also filled the function of a compliance officer. We have worked closely with David Stevens (Gowlings) and his colleagues for over 8 years, to ensure that our undertakings are CRA compliant.JNF Canada has worked side by side with Keren Kayemeth L’Israel for decades. There was confusion about the relationship. To demonstrate that we are an independent Canadian charity, in 2018, JNF Canada fully rebranded to remove any association with KKL.JNF Canada also rewrote, thereby modernizing and strengthening, the agency agreement between the two organizations and utilized this agreement as a template for agreements with other Israeli organizations. JNF Canada has no exclusive relationship with KKL. Rather JNF Canada works with the best organizations in Israel to advance the projects we select. JNF’s leadership make the decisions with respect to projects that we wish to undertake as an organization. There is no KKL “head office” giving instructions to JNF Canada. JNF Canada hired a Senior Representative based in Israel, to enhance our ability to demonstrate direction and control over our projects, represent JNF Canada and oversee our charitable endeavours there.Before undertaking any project, an Israeli lawyer reviews the ownership of the land to ensure JNF Canada is not doing anything in violation of CRA policies.JNF Canada hired a new CFO who has worked with our legal counsel to improve and enhance our record keeping, ensuring that all activities undertaken are compliant with CRA rules and regulations, and that documentation is collected and filed properly. Moving Forward JNF has launched two legal processes to challenge the revocation notice: July 25, 2024: Federal Court of Appeal appeal challenging the CRA revocation decision on the basis of a misapprehension of the facts and law; flawed and unfair process; and bias. August 20, 2024: Federal Court Application for a Judicial Review of the August 10 revocation notice.At the same time, we are calling on our elected representatives to take responsibility.To date, Liberal MPs have situated the actions of CRA as a bureaucratic response to JNF ‘s charitable objects because of audits undertaken in 2014. If elected officials are arguing that unelected bureaucrats have been delegated the authority to make a decision of this magnitude, that was a mistake. The Government should take responsibility. The Minister of National Revenue and the Government of Canada should put the revocation of our charitable status on hold until the courts have ruled, as is customary in situations like ours (based on our lawyer’s review of over 200 cases). JNF Canada should be provided the fundamental value of the presumption of innocence, especially because we are not an aggravated case.While for the time being we are not allowed to issue charitable receipts, please rest assured that we will continue to raise funds in support of building Israel’s social infrastructure to the benefit of vulnerable populations such as youth-at-risk, victims of domestic abuse, children with special needs, veterans and the disadvantaged. Hurting JNF hurts Israelis who need our help the most, especially as they try to recover from the horrors of October 7.There were many opportunities to solve this issue short of the draconian penalty of revocation. JNF would welcome the opportunity to find an off-ramp and will, as demonstrated many times before, continue to do whatever is necessary to satisfy the expectations of CRA. We do not ordinarily post comments to this website. (We received too many spam comments when we allowed comments.) But – if you would like to comment on this story – or any other story for that matter, send an email to jewishp@mymts.net– and if the comment is relevant and not defamatory, we will post the comment. |
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Thoughts on Sid Green
By GRANT MITCHELL (Grant Mitchell is a well-known lawyer in Winnipeg whose father, Leon Mitchell, was Sid Green’s law partner for many years.
Following are remarks Grant delivered at the meal of remembrance which was held following Sid Green’s funeral on June 9:
Sid was a Gold medallist in law in the class of 1955.
He knew that my Dad, Leon Mitchell, was in sole practice in the Confederation Building. Leon was 13 years older than Sid but graduated just the year before. Leon had been the business agent for the Civic Employees Union of the City of Winnipeg before and during law school, and his union connections gave him a client base to start a practice.
After obtaining his call to the Bar, Sid attended Leon’s office and informed him, “You need me.”
Leon was taken aback. He was physically disabled from a major bout of Guillen-Barre syndrome, but felt fully capable of practising solo. He told Sid he didn’t need anyone.
Sid told Leon, “You don’t understand. I don’t mean you need me to advise clients, I mean I can do the physical side for you, attending court and hearings and other functions that require mobility.”
With that understanding, they became Mitchell & Green, and later Mitchell, Green and Minuk when Sam Minuk joined the firm. They were the only labour firm in Winnipeg at that time that acted exclusively on the Union side.
In around 1960, a Mitchell & Green client did not have the money to pay for his legal fees and offered the partially constructed cottage he was building at Big Whiteshell Lake to the firm as payment, with the excess to be refunded to the client. Sid and Leon became co-owners of that cottage. For years it had no plumbing and an incomplete ceiling. When Leon died in 1987, Sid got the cottage.
When Sid went into politics, Leon supported the move, and in fact delivered the nomination speech for Sid to be leader of the NDP when he ran against Russ Paulley and then Ed Schreyer.
When Sid was made a Cabinet Minister in the Schreyer government in 1969, Leon also left practice to go into public service, as Chair of the Municipal Board, Chair of the Mental Review Board and Commissioner in the Churchill Forest Industries inquiry. Sam Minuk became a Provincial Judge. It was the end of Mitchell Green and Minuk. That practice was the foundation of what has become the Myers firm.
Sid and Leon’s paths would cross again when Leon was mediator of the Northern Flood Agreement and Sid was the Minister responsible for Manitoba Hydro.
They had been professional partners with profound mutual respect, but they were also personal friends and remained so for the rest of Leon’s life.
Leon had a huge admiration for people he thought were unusually intelligent. Sid was at or near the top of that list.
At the funeral, I spoke of Sid’s relationship with my father, Leon Mitchell.
I will just add that during their years at the Confederation Building and then in the Crown Trust Building, they hired an articling student named Bill Rachman, who made Sid and Leon nervous about everything he did. When the articling period ended, Sid told Leon that notwithstanding their reservations about Bill’s ethics and practicing skills, Bill would be far more financially successful than either Sid or Leon. Leon agreed. They were correct.
When Sid returned to private practice after his time in government, the unions and he had a falling out and he found himself acting against unions rather than on their behalf
Sid’s philosophy on unions was that protective labour laws produced weak unions, who would not represent their members’ interests effectively. He felt that Wagner Act type labour legislation, now universal in North America, was a tragic compromise by unions. He believed that the recognition strike and the wildcat strike were fundamental weapons for successful trade unions, and that certification of unions, the duty to bargain in good faith and mandatory grievance arbitration were the poor cousins of the recognition and wildcat strikes. This was opposite to the position of the union movement at that time, which lobbied strenuously for union-friendly legislation in the form of greater and greater regulation of the union employer relationship.
In fact, Sid said that the only labour laws that unions should need were to protect the right to picket, and to take away a court’s power to order a person to work. These 2 provisions are found in sections 56 and 57 of the King’s Bench Act to this day, more than 50 years later, and still known to people of my generation as the “Sid Green amendments”. No injunction to enforce a personal services contract. No injunction to restrict assembly on a public thoroughfare to communicate accurate information, that is, a picket sign.
Sid supplemented professors at the law school, Robson Hall, by delivering several lectures in each term about the fundamentals of labour law. I taught that course for 22 years and I had Sid come for a guest lecture, as he had done in the labour law class when I was a student.
He had a powerful and persuasive way of making his points. For example, he felt that a legislated duty to bargain in good faith was a mistake – let the parties fight it out, and let the stronger survive. If employers don’t bargain genuinely, the response is to hold a strike, not run to the labour board.
“If I offer $1, $2, $3, $5, $10 then I’m bargaining in good faith. If I offer $10, $10, $10, $10, then I’m bargaining in bad faith. But it’s still $10!”
He didn’t like certification and preferred the recognition strike. Settle disputes through battle, not argument. Conflict rather than compromise. He particularly objected to certifying unions by card count as opposed to secret ballot vote. A card signer had no meaningful way of revoking their support for the union if they changed their mind after the union applied for certification.
Sid said, “If I buy a vacuum cleaner from a door to door salesman, under the CPA I have a month to change my mind and get my money back. But if I sign a union card, the next day may be too late to change my mind. Which is more important, having a union take over my bargaining rights, or buying a vacuum cleaner?”
Apart from representing employees against unions, Sid also built a practice of representing lawyers who faced disciplinary action from the Law Society. When he ran to be a bencher, he received more votes than any other candidate, even though he was not affiliated with any of the larger law firms. As a bencher, he would send out a “Report from a Bencher” after each Bencher meeting, giving his analysis on the decisions the Society was making, often critical of the majority.
In so many ways, he believed in a “survival of the fittest” approach to human differences. He did not care for protectionist legislation like Human Rights laws. He particularly objected to affirmative action or any other form of “reverse discrimination”.
In one case I had with him, he was acting for Nabila Malik, an economist in the Cabinet secretariat who had been laid off. I was acting for the employer. He called me to tell me that he wished to amend his statement of claim. “I want to add a paragraph to the claim to say that in letting my client go, the government violated its own affirmative action policy because the policy said that there should be more women in senior civil service positions and yet my client, a woman, was let go when many men in senior civil service positions had remained employed.
“Do you object to my amendment?” “No.”
“You don’t think I believe in that affirmative action bullshit do you?” “I don’t know.”
“I DON’T!” But I say, ‘If you are going to preach bullshit, you have to practice bullshit.’”
Sid took up hockey when he was 50. As a young man, he had been a good athlete, quarterbacking the law school football team. It was a late stage of life to learn to skate and join a new sport but Sid approached it with the same gusto he applied to everything else. When he awoke after cardiac surgery a few years later, his first question was, “Will I still be able to play hockey?” You don’t have to be great at something to love it, as I well know. And Sid loved to play hockey, indoors or out.
An employer client of mine had one of its managers vilified in the union newsletter – the “Golden Turkey Award”. My client said, “We want a lawyer for the manager, and we want that lawyer be one with the kind of reputation that when the other side sees who is threatening to sue them, they will involuntarily cringe uncontrollably.” I gave them 2 names, with Sid’s being the second one. “Sid Green, that name sounds familiar. Who is he?” “Oh, he was once the Minister of Labour in the NDP government, but after he left politics, the unions treated him as a pariah, and now he fights them regularly.” “That’s the guy we want.” Sid took the case. He got a settlement offer so generous that the manager desperately wanted to accept it: full page retraction, apology, substantial payment. He may have been a turkey, but he was not foolish. Sid said it was not enough. He got more, before yielding to the client’s wish to settle. And oh, yeah, there were no more golden turkeys awarded.
Sid loved to litigate. He would rather fight than settle. His adversaries knew that, and as a result, he achieved great settlements. Sid’s rejection of an offer was never a bluff.
He had a fundamental belief in democracy, that the rules should be made by people who were elected, not appointed. If he had the choice, he would prefer to be a law maker rather than a lawyer or judge. He also felt that if a matter was worth taking on, it was worth taking all the way. I doubt that any private lawyer has been involved in more appeals.
Others know more about Sid’s career as a politician than I do. He did love to tell one story about his time in government. In 1975, Bob “Junior” Wilson had just been elected in a Wolseley by-election, narrowly defeating Sid’s friend, D’Arcy McCaffrey. In his first appearance in the Legislative Assembly, Wilson stood up to make his maiden speech. The protocol had long been that when a member speaks for the first time, they give a benign speech about how honoured they are to serve their constituents and how they look forward to working with everyone in the house. Instead, Wilson launched into an attack on the governing Schreyer government, accusing them of every misdeed known to politics, and demanding that they immediately resign and call a general election. It fell to Sid to respond on behalf of the NDP majority.
“The Honourable Member has ignored the usual protocol for new members. I don’t mind that. I have no particular affinity for protocols. I think members should say what they genuinely feel. So I commend the Member for being so frank. I have some difficulty with his message, however. He says that we should resign and cease to govern. But that would be undemocratic. A majority of Manitobans have elected us to run the Province. That is our duty. He may not like it, but the fact is that we are his government. But if he feels badly about that, he should imagine how I feel. He is my member!!”
I’ll close by saying that in Sid’s pre-politics practising days, there were many colourful lawyers that made being a lawyer a fascinating profession. By the time he returned to practice, there were only a few of the wild ones left. The profession needed a gadfly like Sid to make practice fun. The reason he got so many votes from the profession is that Manitoba lawyers recognized that in Sid there was a fearlessness mixed with skill, humour, joy and a profound understanding of the policy reasoning behind the letter of the law. There was no one like him, and I doubt that there will be one. I will miss him.
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Sid Green – famed lawyer, one of the first Jewish provincial cabinet ministers, and first director of BB Camp – passes at age 96
By BERNIE BELLAN Sid Green, whose name was well known in so many different circles in Manitoba, passed away on Sunday, June 7, at the age of 96.
Green was perhaps best known as one of three Jewish Members of the Legislature who became cabinet ministers in the first ever NDP government in Manitoba, which came to power in 1969 under the leadership of Ed Schreyer. (The other two Jewish members who became cabinet ministers were the late Saul Cherniack and the late Saul Miller.)
Green, who had first been elected as an MLA in 1962 representing the riding of Inkster, led a challenge to then-NDP leader Russ Paulley in 1968, which eventually led to Paulley resigning as leader. The subsequent leadership race saw Green, who was only 39 at the time, facing off against a 32-year-old Ed Schreyer.
Although Green and Schreyer were later to part ways over a number of issues – especially over the issue of aid to private schools, Green and Schreyer were actually good friends.
In fact, Ed Schreyer, who is now 90, spoke at Green’s funeral, which was held Tuesday, June 9, at the Chesed Shel Emes (with interment following at the Hebrew Sick Benefit Cemetery).
In his early years, Sid Green was a very active member of the YMHA on Albert Street, serving as president of the house council for several years. A fierce athlete, Green competed in basketball and volleyball at the Y. At the age 50 he took up ice hockey – and was known for his fierce competitiveness. He was to serve on the board of directors of the YMHA for many years, right up until its closing in 1997.
Green was also the quarterback for the University of Manitoba law school football team during the early 1950s – and led them to two school championships. In a 2019 interview I conducted with Green about his early years at the YMHA, he noted that he was the only 5’6″ 150 pound quarterback in the inter-faculty league.
In 1954 Green became the first director of BB Camp, which had just moved to Town Island from Sandy Hook.
In 1955, Green graduated from the U of M law school, winning the gold medal in law that year.
He went on to become one of Manitoba’s most successful labour lawyers, subsequently pairing withfamed labour lawyer, Leon Mitchell, later to be joined by Sam Minuk (who was to become a provincial court judge) in what became the firm of Mitchell, Green & Minuk.
During his time as a lawyer, Green often represented employers – which might seem a little surprising for someone who such a staunch NDPer. But Green was staunchly opposed to entrenching laws such as anti-scab legislation or secret ballot voting to unionize. He thought it important to represent any client, including employers engaged in disputes with unions, no matter how much he might have disagreed with that client’s position, and because he was so skilful in arguing a case, he was much sought after by employers to represent them in labour disputes.
He was so respected as a lawyer, moreover, that he was often asked to represent other lawyers in cases before the courts.
Green was also very pro-Israel and extremely proud of his Jewish roots. Although not a religious man, during his many years at the Y – first on Albert Street, then later on Hargrave, Green was involved in developing many Jewish cultural programs.
In days to come we will have much more about the life of Sid Green. In the meantime, if you want to watch a video interview I did with Sid about his experiences at the Y on Albert Street, you can go to Sid Green reminisces.
Sid Green was predeceased by his wife Shleema in 2009 and is survived by his five children: Arthur, MIndy, Cathy, Sharon, and Marty, as well as 15 grandchildren.
For more about Sid Green’s career, read Grant Mitchell’s eulogy, which was delivered at the Meal of Remembrance following Sid Green’s funeral on June 9: Grant Mitchell on Sid Green
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