Chabad School Loses Tax Exempt Status For Allegedly Giving Out More Than $10 Million In Fraudulent Donation-In-Kind Tax Receipts

“…The CRA [Canada Revenue Agency] audited the operations of [the Shmuel Zahavy Cheder Chabad in Toronto] for the period from July 2007 to June 2009. In a letter dated October 25, 2011, the CRA identified numerous specific areas of non-compliance which it says were uncovered by the audit. One notable area of alleged non-compliance is with respect to a substantial number of gifts in kind, ranging from artwork to jewellery and timeshares, which the applicant was unable to substantiate the existence, the value or the use to the satisfaction of the auditor, but for which it issued donation receipts over a number of years. The amounts at issue are substantial, since the total value of all such assets was reported to be over $10 million.…”

Here is the entire decision by Canada's Federal Court of Appeal delaying the public announcement of Cheder Chabad's loss of tax exempt status until December 31, 2013 as a PDF file:

Download Cheder_Chabad_v._The_Queen_(FCA)_

Cheder Chabad also runs an unlicensed preschool / daycare at Chabad of Midtown in Toronto it deceptively presents as compliant and licensed.