Saskatoon-based charity may no longer issue tax receipts

A Saskatoon-based charity may no longer issue tax receipts for donations, the Canada Revenue Agency says.

According to the government, International Fellowship Mission Inc., was involved in a system called the Universal Barter Group.

In the system, people acquired what were called TradeBUX without putting up cash.

The TradeBUX credits were then donated to the charity, which would issue a receipt.

According to the CRA, the arrangement appeared to exist primarily as a way for people to lower their taxes and there was no documented charitable work.

According to the CRA, the International Fellowship Mission "was simply working as a conduit for the tax shelter program."

"Our audit revealed the books and records kept by [International Fellowship Mission] were inadequate," the CRA said.

The CRA was told the charity was sending medicine to Ghana, but there was no documentation to substantiate that.

The CRA said charities which don't maintain proper records may not issue tax receipts for donations.

With files from CBC's Kathy Fitzpatrick