Abusive Charity Gifting Schemes in Canada suffer decline in value and numbers in 2009
Posted under News | What's New from the Charities Directorate of CRA | Canadian Charity Law | Canadian Charity Statistics | Ethics and Canadian Charities | Avoiding 'Charity' Scams
It is good to see that in 2009 the problem of abusive charity gifting tax shelters has been further reduced. Here are the statistics from CRA:
2009:
Number of “Donors”/Investors: 10,813 donors
Amount of “donations”: $ 285,946,839
Number of schemes: 7
2008:
Number of “Donors”/Investors: 17,301 donors;
Amount of “donations” $484,150,482
Number of schemes: 9
It is interesting to note that the value of the claims has been reduced from 484m to 285m. As there are almost the same number of investors it means that each is investing less i.e. these are probably people with less income to shield. More sophisticated and well advised taxpayers have been staying away from these schemes because they don’t work. As well, many less sophisticated investors have already been burnt on previous investments and if not ‘once burnt, twice shy’ then after you have been burnt a couple of times these schemes don’t look so good.
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Mark, this is great news. And your analysis of the kind of investor who’s participating these days makes sense too. We can only hope that as the “profit margin” from each investor drops, these schemes will wither away in time. You’re playing a huge part in building public awareness and solving the problem.