In a significant legal defeat for "Israel", a Canadian Federal Court has upheld the Canada Revenue Agency's (CRA) decision to revoke the Jewish National Fund of Canada’s (JNF Canada) charitable status. The court dismissed JNF Canada’s attempt to reverse the CRA's ruling, stating that it had no authority to reinstate the organization's charitable status while it pursued other legal avenues.

The CRA had initiated an audit of JNF Canada's operations, which led to the 2019 decision to revoke its charitable status. It is worth noting that JNF Canada has been a registered charity in Canada since 1967. Following the CRA's findings, including non-compliance with the requirements of the Income Tax Act, the organization’s charitable status was officially revoked.

The CRA found that JNF Canada had failed to meet the necessary conditions to operate exclusively for charitable purposes and provide a clear public benefit.

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While the specifics of the non-compliance were not disclosed in the court documents, critics have long argued that JNF’s activities are not charitable. The JNF, which was established in 1901, has played a controversial role in land usurpation and development projects in Palestine, which critics believe have contributed to the forcible displacement of Palestinian communities.

JNF Canada's operations, funded in part by Canadian tax dollars, have faced significant criticism, particularly for supporting infrastructure projects that further the Israeli military occupation of the West Bank. Reports suggested that up to 25% of JNF Canada's budget came from Canadian taxpayers.

As a result of the ruling, JNF Canada has been ordered to wind down its operations and distribute its remaining assets, estimated at $31 million.

This legal setback for JNF Canada is part of a broader scrutiny of organizations that support the Israeli occupation while benefiting from charitable status in Western nations, with analysts speculating that similar legal challenges may arise in other countries.