Report finds CRA failed to explain audits of Muslim charities

October 2,2025

RED FM News Desk

The Canada Revenue Agency (CRA) was often unable to justify why it chose to audit certain charities for potential terrorism links, raising concerns that bias and discrimination may have influenced its decisions, according to a federal intelligence watchdog. 

The National Security and Intelligence Review Agency (NSIRA) released a report, obtained by CBC News through an access to information request, following years of allegations that the CRA’s Review and Analysis Division (RAD) unfairly targeted Muslim charities. RAD is responsible for ensuring that charities are not exploited to finance terrorism. 

Investigators found weaknesses in RAD’s processes, which led to audits of organizations that posed no credible risk of terrorist involvement — despite the CRA’s public claim that it only audits high-risk charities.

Between 2009 and 2022, 67 per cent of RAD’s completed audits involved Islamic charities, and 19 per cent involved Sikh charities. 

The report noted that RAD bases its decisions on tips, media reports, intelligence referrals, or information from other CRA divisions. While acknowledging that scrutiny can be warranted to protect the sector, NSIRA said it often could not determine when or why RAD decided to initiate audits. 

The Muslim Association of Canada (MAC), which underwent a seven-year audit without any terrorism financing concerns being found, said the findings confirm what the community has argued for years — that the audits were disproportionate and unjustified.