Canada Branch Finances - What's Going On? (page 2)

nelim

Hmm, would the Kingdom Hall loans have been under that 'Long-term investments" category?

Isn't the WTS tax-free anyway? So what would be the point of these gifts then, as a tax-return on an already zero tax?

OrphanCrow

Oppostate: Look at the figures for long-term investments,
they've taken their investments and cashed in.

Yes, I noticed that too. the long term investments went from 34 mil down to 2 mil.

But, if you look down to where they list income received from interest and investments - the figure went up - from just over 2 mil to 3.8 mil.

BerryGerry:...balance should be about 69 million - however balance is 33.7 million
Putting aside: "how did your 'income' increase by 15 million, and you end up with a 20 million loss (a 35 million difference)?"
Putting that aside as legit, still means that an additional 35 million was removed from the books.

BerryGerry - I wonder if CRA caught that. That is a large glaring difference. Where did the money go? How could 35 mil disappear?

berrygerry

BerryGerry - I wonder if CRA caught that. That is a large glaring difference. Where did the money go? How could 35 mil disappear?

They're getting a letter.

(Long-term investments could be writing off mortgages, but they're still getting a letter.)

OrphanCrow

nelim: Isn't the WTS tax-free anyway? So what would be the point of these gifts then, as a tax-return on an already zero tax?

The WTS still has to account for the money they receive and it has to be shown as being spent on "charitable activities". By forgiving the loans, and claiming them as a "charitable gift", the WTS fills the no profit requirements by claiming that the organization is "charitable".

The "zero tax" can only be claimed as long as the money received is spent on charitable activities. In this case, forgiving mortgages is the charitable act.

OrphanCrow

They're getting a letter.

Good. The CRA loves to get information from people about possible tax fraud. They are ruthless.

berrygerry

Isn't the WTS tax-free anyway? So what would be the point of these gifts then, as a tax-return on an already zero tax?

They shouldn't be.

Policy statement

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 (that is, found in an Act of Parliament, a regulation or other publicly available government document of any kind).

http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/csp/csp-p13-eng.html

OrphanCrow

Correction - I had said that there were 250 congregations listed as "qualified donees".

That should be "434" congregations.

Hmmm...the rest of the 1390 Canadian congregations must not have had a mortgage.

wallsofjericho

did they "purchase" all the kingdom halls last year?

sir82

did they "purchase" all the kingdom halls last year?

That can't be it. They'd have less cash but more "land and buildings in Canada". That category only went up $1 million 2013 --> 2014.

TheListener

So Brooklyn (Warwick) is not only taking all the US congregations money but also the foreign branches as well...

Their new push into slickly produced videos and fancy graphics better pay off big time if they are going to recoup their investment.

Canada Branch Finances - What's Going On?

Policy statement

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