Finance Department Slams Clinton Foundation’s Claim On Non-Disclosure Of Donors In Canada; Expert Argue ‘It’s Up To Clinton To Disclose’ [CORRECTION]

Len Farber, an expert on privacy and tax law in Canada, denied Clinton Foundation’s claim that Canadian federal law prohibits charity foundations from disclosing to the public the personal information of donors. Farber, who once served as tax policy director under the Canadian Department of Finance, elaborated that it is entirely up to the Clintons to release the names of their donors.

A stumbling block unveils before the eyes of Democrat Presidential hopeful Hillary Clinton after an admission was made by Maura Pally, acting chief executive of Clinton Foundation, that the foundation was legally proscribed to reveal the identity of the 1,100 donors of Clinton Giustra Enterprise Partnership (CGEP) which is registered under Canadian federal laws.

Farber contended that even supposing that CGEP made a promise of anonymity to its donors, it does not necessarily follow that the charity has established a fiduciary relationship with the donors. It would have made sense, according to the law expert speaking to Bloomberg, if CGEP instead claimed that it has a fiduciary obligation to the public, from whom they collect finances.

Furthermore, Adam Aptowitzer, a lawyer expert on charitable organisation law in Canada, spoke to the Federalist and assured there is nothing in Canadian federal law prohibiting disclosure of the identity of charity donors to the public. What the federal law proscribes in Canada is revealing personal data related to commercial activities including barter, lease and selling.

“I do not see how the public disclosure of a donor’s name constitutes commercial activity. There is no transaction, there is no consideration,” Aptowitzer was quoted by the Federalist.

In fact, the Office of the Privacy Commissioner of Canada issued on its website a statement, saying, “It should be noted that PIPEDA does not apply to organizations that are not engaged in commercial activity. As such, it does not generally apply to not-for-profit and charity groups, associations or political parties, for example — unless the organization is conducting a commercial activity.”

Canada’s Personal Information Protection and Electronic Documents Act tackles the propriety of releasing personal information, but points out that only commercial activities are within its ambit. Magali Deussing from Canada Revenue Agency spoke to the Federalist on the query of statutory blanket prohibition on disclosing donor and opined that Canada’s Income Tax Act does not govern on whether a donee or registered charity can release donor information.

Clinton’s presidential bid exposes her family’s foundation to heightened public scrutiny. The Democrat forerunner is yet to address the latest issue.

CORRECTION: A May 4 version of this story erroneously stated Len Farber as denying Hilton Foundation's claim. The correct name of the foundation is Clinton Foundation, not Hilton Foundation.

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