Canadian MP Calls for RCMP probe of promoters involved with abusive charity gifting schemes

November 08, 2010 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, Avoiding 'Charity' Scams

Here is a good idea from Albina Guarnieri, MP from Mississauga East-Cooksville.  I must admit I only recently saw this, I was too focused on her extremely ill conceived Bill on charity salary disclosure and compensation.

This is a Press Release from the Office of:

The Honourable Albina Guarnieri, P.C., M.P.
Mississauga East-Cooksville

For Immediate Release
September 15, 2010

OTTAWA –  It seems that billion dollar tax scams don’t attract criminal charges these days. However, the Minister of National Revenue should at least take action against the charity CEOs who were complicit in one of the biggest taxpayer rip-offs in Canadian history.

The Globe and Mail reported that charities and “promoters” participated in a scheme where people could donate $15,000 and receive a tax receipt for $50,000. No participant could honestly believe that this was in any way legitimate.  According to the Globe and Mail, David Duff, manager of the tax audit section of the CRA, claimed that “little if any of any investors ‘gift’ actually goes to any registered charity”.  The Government now has to recover $2.5 billion taken at the expense of all honest taxpayers.

“I have written to the RCMP asking for a criminal investigation into the promoters who profited from this scheme and the charity executives who facilitated it” said Albina Guarnieri, MP for Mississauga East Cooksville. “The Minister of National Revenue should bar charity executives who participated in this scheme from ever running a registered charity again.  The OSC regularly bars company directors involved in dishonest activity. Charities should not be allowed to operate in an ethics-free zone”.



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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.
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