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May 11, 2010

Canadian Auditors Shut Down Bogus AIDS Charity

The Canadian Revenue Service has shut down the Orion Foundation after an audit revealed the AIDS charity was a tax shelter scheme, the Toronto Star reports.

The foundation claimed it gave $200 million in HIV/AIDS antiretroviral drugs to Africa, but the audit proved otherwise.

Working with a tax shelter called the Canadian Organization for International Philanthropy (COIP), the Orion Foundation would solicit millions of dollars in donations and then issue receipts for up to five times that amount. The scheme would reduce the income taxes the donors had to pay.

Records showed that Orion paid COIP as much as $360,000 for fund-raising fees and $320,000 to charity directors plus funds for vacations and home renovations.

According to the article, Orion founder James Arion also set up dummy corporations that processed payments to high-class escort businesses.

Search: Canadian Revenue Service, Orion Foundation, AIDS, charity, Africa, antiretroviral drugs, Canadian Organization for International Philanthropy, taxes, donations, James Arion, corporation, fees, audit

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Stephen Martin, Ottawa, 2010-05-15 14:17:35
What the hell is the Canadian Revenue Service??? I've heard of the IRS (Internal Revenue Service) in the States, and the CRA (Canada Revenue Agency), but I've never heard of anything called the Canadian Revenue Service. Good work there boys!

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