In a shocking turn of events, the Canada Revenue Agency (CRA) has revoked the charitable status of two Christian organizations tied to a prominent pastor in the Vancouver area, following serious allegations of misconduct involving tax regulations.

The organizations in question, Grace Christian Chapel and Faith & Action Mission Society, are accused of being leveraged by their directors for personal benefit rather than adhering to their claimed charitable missions.

According to the CRA’s findings, both charities had significant non-compliance issues, raising concerns that the platforms were essentially used as "vehicles" for personal gain by the charity's directors.

The auditors discovered that the entities failed to uphold their mission of aiding the needy and promoting religious activities, casting a shadow over their operational integrity.

Grace Christian Chapel and Faith & Action Mission Society have announced their intentions to appeal the CRA's revocations.

Both organizations, which have been under the leadership of Reverend Stephen Sai-Fung Lee, have been implicated in a range of questionable practices, including a previous audit that uncovered mismanaged funds and non-compliance agreements that were never fulfilled.

Lee, who previously made headlines in 2021 for the controversial sale of a long-term care home in Chinatown—which left 70 seniors without accommodation—has faced scrutiny over his complex web of real estate dealings.

Notably, after significant media exposure and public outcry, the B.C. government intervened, purchasing the property for $13.7 million to ensure no senior faced eviction.

The CRA's audit revealed that substantial funds, allegedly totaling over $3 million, were allocated to non-charitable efforts rather than the intended social support activities.

The CRA's website describes the situation as a "serious” and “repeat non-compliance,” emphasizing that the leadership had used charity resources to offset expenses for for-profit ventures.

Lee's leadership has often been characterized by controversy.

Prior to founding Grace Christian Chapel, he was the pastor of the Vancouver Chinese Mennonite Church, helping numerous refugees assimilate into Canadian society.

However, his departure from the Mennonite Church in 2013—amid disputes over real estate transactions—has drawn significant criticism, culminating in the loss of his ordained minister status.

In response to the current allegations, Lee has not commented directly but has expressed through representatives that the charities will challenge the CRA's decisions.

However, industry experts warn that such enforcement actions by the CRA are not taken lightly, typically reserved for cases of gross misconduct that cannot be resolved through less severe penalties or educational initiatives.

As the situation continues to develop, this case shines a spotlight on the accountability of charitable organizations in Canada.

Around 40 million Canadians support approximately 86,000 registered charities, making transparency and adherence to regulations essential.

With the CRA's priority on maintaining public trust in the charitable sector, the outcome of this appeal could have widespread implications for similar organizations facing scrutiny.

The scandal is not only a blow to the reputations of those involved but also raises critical questions about the integrity of charitable work in Canada.

As the appeals process unfolds, the public will be watching closely for any further developments.