A Canadian federal appeals court has rebuked the country’s tax authority for failing to disclose documents related to its revocation of the non-profit status of Jewish National Fund–Canada.
In a ruling issued on Thursday, the Federal Court of Appeal ordered National Revenue Minister François-Philippe Champagne and the Canada Revenue Agency to comply with previous court directives to search for and produce records relevant to the case.
Justice David W. Stratas warned that failure to meet such obligations could carry serious consequences.
“If an administrative decision-maker and its staff carrying out a search and production order are later found to have participated in a cover-up, life-changing consequences—civil and criminal—will follow,” he wrote.
The dispute stems from the CRA’s August 2024 decision to revoke JNF-Canada’s charitable status following a years-long audit process. The agency relied on audits purportedly showing JNF-Canada funds supporting Israeli military infrastructure, which is a violation of Canadian tax regulations prohibiting registered charities from supporting foreign armed forces.
At least 10 Israel-linked charities, including the Canadian Zionist Cultural Association, Canada Charity Partners, Herut Canada Charitable Foundation and the Canadian Foundation for Masorti Judaism, have had their charitable status revoked over the last two years.
CRA pointed to some supporting the Israeli army, and others for lax compliance issues.
JNF-Canada has challenged the decision in court, arguing the process was unfair and that it had worked with regulators for years to address concerns.
“For us, this represents a big victory,” Nathan Disenhouse, national president of JNF-Canada, said of Thursday’s ruling. “We do not want long and protracted litigation with Minister Champagne and his officials. We simply want to get back to doing charitable work.”
Stratas underscored the importance of accountability, writing that all exercises of public power must be subject to “meaningful and fully independent review,” adding that “‘L’état, c’est moi’ (‘the state, it is me’) and ‘trust us, we got it right’ have no place in our democracy.”
Thursday’s ruling does not address the merits of the revocation but focuses on disclosure, requiring the CRA to conduct a broader search across multiple offices, including the minister’s, for potentially relevant documents, including those related to allegations of bias. The court imposed a one-month deadline.
Jewish National Fund is a global network that has historically funded environmental and community projects in Israel, including planting trees, building parks and supporting social, cultural and educational infrastructure.
