Canada Branch Finances - What's Going On?

by berrygerry 40 Replies latest watchtower beliefs

  • berrygerry

    An update on the Canada branch hasn't been made (I think).

    Year-over-year, Canada's equity decreased by 11 million in 2012, 17 million in 2013.

    However, the 2014 report shows a huge increase (20 million) in the cost of "Purchased Supplies." With the shrinkage of the mags, and the push to online, how the heck did this go from 39 million to 58 million?

    Even with this number, the equity in 2014 went down by a staggering 56 million.

    What the heck is going on?

    Are they actually bleeding that much money at Brooklyn , and it's all being sent there?

  • hoser
    I know they are printing all the mags for North America in canada now. That might have something to do with it.
  • Oubliette


    What is the source for these figures?

  • berrygerry
  • Vidiot

    berrygerry - "What the heck is going on?"

    In mob parlance, it's called "cooking the books".

  • sir82

    So if I'm reading this right, for the 3 years period 2011 - 2014, (1) net assets decreased by more than 70%, and (2) expenses exceeded "income" by about $45 million, (3) "income" actually grew by about 20%, but expenses grew by by nearly 70%?

    Those are some pretty wild fluctuations for a (theoretically) mature and stable enterprise.

    I would echo, what the heck is going on?

  • oppostate

    Look at the figures for long-term investments,
    they've taken their investments and cashed in.

    Land and buildings has pretty much stayed the same
    (just a small increase there). While Other capital assets
    have doubled. Yet the Total assets figure has gone down
    by 50 million in one year.

    Then look at Assets less liabilities line:
    They've used up their cash buying new assets (and supplies).

    Now skip to Total cost of all purchased supplies and assets:
    They've been spending a lot more and more every year to the
    tune of 160+million since 2009, and 50+ million just last year.

    And one last look at Amortization of capitalized assets line:
    That means a "depreciation" of their assets broken up into
    installments, last year that was over 5 million.

    So, the Canadian Branch has been making huge purchases.
    Some other entity(-ies) have ended up with a third of the total
    wealth of the Canadian Branch.

    What have they gotten for spending a third of their assets?

    Not land and buildings. That figure shows little increase.
    It's in the "purchased supplies" rather than assets that you'll
    find the huge expenditures.

    Since we know a lot of the printing has moved from the U.S.
    to Canada, I feel it would be safe to guess that the U.S. Branch
    sold Canada the equipment and other supplies for printing, thus
    showing a great expenditure on the Canadian Branch, while the
    U.S. Branch, or whichever other WT entity sold the materials
    became $50+ million richer last year.

  • OrphanCrow

    For a more detailed tax return:

    2014 Registered Charity Information Return for Watch Tower Bible and Tract Society of Canada

    In addition to what BerryGerry posted, there are some other interesting things to note in the Canadian tax return for the WTS.

    Line C3 of the linked document says this:


    Did the charity make gifts or transfer funds to qualified donees or other organizations?

    If yes, you must complete Form T1236, Qualified Donees Worksheet/Amounts Provided to Other Organizations.
    If a person checks out who those "Qualified Donees" are by following this link, you discover that 250 Canadian congregations are listed as qualified donees. The "gifts" that the Canadian Branch made to the congregations vary from a few hundred dollars to several hundred thousand for each congregation.
    And now we know why the WTS "forgave" all those KH mortgages. It was a tax grab - those "gifts" would be considered an expenditure. The mortgages were "forgiven" for an advantage on WTS tax returns.

    Here is another item:

    Did the charity carry on, fund, or provide any resources through employees, volunteers, agents, joint ventures, contractors, or any other individuals, intermediaries, entities, or means (other than qualified donees) for any activity/program/project outside Canada?

    If yes, you must complete Schedule 2, Activities Outside Canada.

    As part of the $67 Million plus that is claimed as an expense for charitable work outside Canada, Activities Outside Canada gives this information:

    Is the charity exporting goods as part of its charitable activities?
    If yes, list the items being exported, their value (in Canadian dollars), their destination and the country code.

    Lighting Fixtures$ 3,758New YorkUS
    Dental Vaccum Pump$ 6,715Igieduma, Edo StateNG
    Trade Show Display$ 8,164New YorkUS
    Telephoto Camera Len$ 23,391New YorkUS

  • berrygerry

    If you look at the bottom line, you'll see the following:

    If you add or subtract this number year by year to: "Assets less liabilities," the math was working, irrespective of HOW the funds came in or out, or what it was spent on.

    So, 2009 ended with $96 million in equity.
    2010, add 20 million in "profit" - balance 116 million
    2011, add 2 million in "profit" - balance 117 million
    2012, subtract 8 million in "loss" - balance 106 million
    2013, subtract 15 million in "loss" - balance 90 million
    2014, subtract 21 million in "loss" - balance should be about 69 million - however balance is 33.7 million
    Putting aside: "how did your 'income' increase by 15 million, and you end up with a 20 million loss (a 35 million difference)?"
    Putting that aside as legit, still means that an additional 35 million was removed from the books.

  • Splash
    Long term investments (cell G5) took a 32 million nosedive.

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