"We believe that there are reasonable grounds for concern that TRO (Canada) operates for purposes that conflict with Canadian public policy," the head of Canada's charities directorate wrote in a letter to the group. "More specifically, there appears to be reason to conclude that TRO (Canada) may be functioning as part of a support network for the terrorist organization Liberation Tigers of Tamil Eelam."

The Conservatives have not yet taken action and the group continues to operate in Canada but one of the decisions facing the new Public Safety Minister, Peter Van Loan, will be whether to designate the TRO a terrorist "entity" under the Anti-Terrorism Act, which would force it to close.

Federal officials declined to say whether they were preparing to add the TRO to Canada's official list of terrorist groups. "It would be inappropriate for me to comment on which entities are under consideration for potential listing; the assessment process for new listings is ongoing," said Stéphane Thérien, a spokesman for Public Safety Canada.

Signed by Canada's Director of Charities, Elizabeth Tromp, the letter said that "TRO (Canada) appears to operate within the overall structure of the LTTE."

Ms. Tromp's main concern appeared to be that the TRO office in Canada sends the money it collects to the TRO headquarters in rebel-held Sri Lanka. "The consensus of numerous and diverse sources we have reviewed indicates that the TRO raises funds in support of the LTTE," Ms. Tromp wrote in her letter.

The affidavit says the RCMP's counter-terrorism unit found evidence about the TRO while investigating another Canadian group suspected of links to the rebels, the World Tamil Movement (WTM).

RCMP Corporal Shirley Davermann wrote that the money was "actually sent to the LTTE in Sri Lanka." But Mr. Gunanathan said he doubted the police account. "It's a false report," he said. "If anybody is sending funds to LTTE and they write ‘We are sending money to LTTE,' it would be the height of absurdity for anybody to say."

The RCMP affidavit also describes links between the Tamils Rehabilitation Organization and the World Tamil Movement, which was shut down by the police earlier this year for allegedly funding the rebels.

For example, the TRO "representative" in Quebec was also the owner of the building that housed the WTM office in Montreal, police said. In addition, several World Tamil Movement officials have said publicly that they had solicited money for the Tamils Rehabilitation Organization.

"We find it significant that the World Tamil Movement, an alleged front organization for the LTTE, canvasses for and advises people to donate to the TRO," Ms. Tromp, the charity official, wrote.

The Tamils Rehabilitation Organization office at Eglinton Ave. and Kennedy Rd. in Toronto has nonetheless continued to solicit contributions. Donation envelopes were inserted into Tamil-language newspapers in Toronto last summer.