The Canada Revenue Agency announced Friday that it will revoke the status of Biathlon Canada as a registered Canadian amateur athletic association for issuing donation receipts in connection with abusive transactions.

The CRA said it’s revoking the group’s status for issuing more than $25.9 million in donation receipts “for abusive transactions arising from its role as a participant in tax shelter arrangements” that, in the CRA’s opinion, do not qualify as gifts.

A registered Canadian amateur athletic association that has had its registered status revoked can no longer issue donation receipts for income tax purposes and is no longer a qualified donee under the Income Tax Act.

The CRA says it is reviewing all tax shelter-related donation arrangements (for example, schemes that typically promise donors tax receipts worth more than the actual amount of the donation), and it plans to audit every participating charity, promoter, and investor.

IE