Posts by OrphanCrow

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

OrphanCrow

I have been doing some more reading about the CRA's rules for charities and non-profit organizations. There has been some recent changes to ensure that these organizations are actually not for profit.

In previous years, the KH loans were reported as "Long Term Investments" but have now been converted to "gifts to qualified donees". There is a tax related reason for this change.

The CRA considers long term investments as profit making ventures and therefore not allowed for non-profits under Canadian tax law.

http://drache.ca/articles/charities-article-archive/non-profit-organizations-and-the-income-minefield/

An overly-large reserve might also indicate the NPO is accumulating for inappropriate (i.e. for-profit) purposes.
A common ‘inappropriate’ purpose is the intention to earn investment income. Interpretation Bulletin IT-496R opines that using accumulated funds for long-term investments is ipso facto a for-profit purpose, taking the organization outside of the scope of section 149(1)(l).

This would explain why, on the 2014 tax return, the long term investments have been reduced so significantly and subsequently, the reserve is much smaller. The WTS was forced to make this change by the CRA. They were likely censured for giving out loans as a profit making venture and, if they hadn't forgiven the loans, they could have lost their tax exempt status.

And now you know why Sophie can't have ice cream - the Tower Daddy lost a whole bunch of that re$erve they had.

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

OrphanCrow

They spent 23,000 on a LENS????? My god are telvisions cameras that expensive?

Copy camera lenses can be that expensive. But, why would Canada send a lens to New York? And get to claim it as a charitable gift??

It is possible that it was a copy camera lens from the printing department that was no longer in use. What to do with an out of date copy camera lens??? Oh. I know! Send it to New York! And call it a gift.

*oops - sometimes I post too fast - "telephoto lens" would not be used for copy work. But a motorized, state of the art TV lens would cost a bundle....lots.

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

OrphanCrow

BerryGerry - I think the 35 mil that looks like it has disappeared is actually still there. It isn't that the WTS has hidden it - the CRA has changed their forms and reporting for the 2014 tax year.

On the long financial form, gifts to qualified donees used to be reported with "other income" on line 4920. This year, the gifts are added on after the expenditures have been totalled. On line 5050 - $35,921,399 is listed as charitable gifts - the 434 congregations that were gifted by the WTS would be in this number and would make up the difference that you see on the brief summary.

The summary in the OP gives the figure of $82,779,949 for total expenditures yet the long form gives the figure of $118,701,348 as total expenditures after the gifts have been added in.

It is possible that the mortgage forgiveness was a move to get in line with the tax laws for charitable organizations. It appears like there has been a change in the CRA rules and reporting.

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

OrphanCrow

Correction - I had said that there were 250 congregations listed as "qualified donees".

That should be "434" congregations.

Hmmm...the rest of the 1390 Canadian congregations must not have had a mortgage.

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

OrphanCrow

They're getting a letter.

Good. The CRA loves to get information from people about possible tax fraud. They are ruthless.

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

OrphanCrow

nelim: Isn't the WTS tax-free anyway? So what would be the point of these gifts then, as a tax-return on an already zero tax?

The WTS still has to account for the money they receive and it has to be shown as being spent on "charitable activities". By forgiving the loans, and claiming them as a "charitable gift", the WTS fills the no profit requirements by claiming that the organization is "charitable".

The "zero tax" can only be claimed as long as the money received is spent on charitable activities. In this case, forgiving mortgages is the charitable act.

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

OrphanCrow

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

Yes, I noticed that too. the long term investments went from 34 mil down to 2 mil.

But, if you look down to where they list income received from interest and investments - the figure went up - from just over 2 mil to 3.8 mil.

BerryGerry:...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.

BerryGerry - I wonder if CRA caught that. That is a large glaring difference. Where did the money go? How could 35 mil disappear?

8

Question you may have ,but to embarrassed to ask.

by James Mixon in

jw
friends

i will start.. 1) can you cry under water?

(2) once you are in heaven, do you get stuck.

wearing the clothes you were buried in for eternity?

OrphanCrow

If our knees bent the other way, what would chairs look like?

*about the bra: Bra is short for "brassiere" which comes from the french word for "arm". Brassiere in contemporary French means "children's vest".

40

Canada Branch Finances - What's Going On?

by berrygerry in

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?.

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:

C3

Did the charity make gifts or transfer funds to qualified donees or other organizations?
2000
Yes

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:

C4
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?
2100
Yes

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:

7

Is the charity exporting goods as part of its charitable activities?

260

Yes

If yes, list the items being exported, their value (in Canadian dollars), their destination and the country code.

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

60

Does The Governing Body Have Enemies At Bethel?

by Brokeback Watchtower in

i would think that a lot of resentment is building up for these for these guys at bethel even though it may not be discussed openly for fear of being abused by the gb in some way.. any way looking at their personality and the extreme phoniness of rubber mouth/face lett, and am#3, and the chicken shit coward leosch who won't even show up in court when subpoena'd to defend his faith or policies, and i'm sure they have many more undesirable traits that repel people instead of attract and that has to work its toll on relationships they have at bethel.. and this shunning thing i'm sure must really erk some at god's house and while they may not be free to voice their discontent i feel it must be building because these guys are complete nincompoops when it come to reality and the only way they know how to give direction is with fear and guilt which i'm sure is rubbing a lot of people the wrong way.. and let not forget the issues that are raise when they stole all the congregations savings and the pledge drive for more cash, ban on higher education, lawsuit pay out and etc.... what is this doing to the relation ship they have with legal and accounting i see trouble brewing right thier in the spiritual pair of dice..

OrphanCrow

The WTS has developed a reputation for publicly shaming and censuring those in the upper echelons who don't toe the party line.

From the new convention release in the Jesus Christ book:

Jesus goes on to give his disciples reason for optimism. He assures them that when his prophecy is being fulfilled, there will be a “slave” who is alert and active. Jesus draws on a situation that the apostles can readily picture: “Who really is the faithful and discreet slave whom his master appointed over his domestics, to give them their food at the proper time? Happy is that slave if his master on coming finds him doing so! Truly I say to you, he will appoint him over all his belongings.” If, though, the “slave” develops an evil attitude and mistreats others, the master will “punish him with the greatest severity.”—Matthew 24:45-51; compare Luke 12:45, 46.

The WTS writers did not have to include the last sentence of the above paragraph - it does not add to the context of the material. But...it does sound like a threat or warning to the "slave", or factions of it, to smarten up or get punished severely.

Methinks there is trouble brewing in the Tower.