Maréchaux, F.M.E. v. The Queen (TCC) - leveraged donation scheme nixed by Tax Court of Canada

November 17, 2009 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: What's New from the Charities Directorate of CRA, Canadian Charity Law, Planned Giving and Canadian Charities, Ethics and Canadian Charities, Avoiding 'Charity' Scams

In Maréchaux, F.M.E. v. The Queen the case revolved around whether F. Max E. Maréchaux, was entitled to a charitable donation tax credit.  Maréchaux is a lawyer at the law firm Miller Thomson LLP. http://www.millerthomson.com/index.cfm?cm=Employee&ce=details&primaryKey=16425   CRA had disallowed the donation claiming it was not a gift.  The appeal which relates to the 2001 taxation year and the tax court dismissed his appeal with costs and ruled for CRA.

Mr. Maréchaux was represented in his unsuccesful appeal by David W. Chodikoff, another lawyer at Miller Thomson LLP.  According to the case “The Program was implemented on December 31, 2001, with 118 participants (“Participants”) and donations totalling approximately $18,305,000.”  You can read the full case at:  F._MAX_E_._MARECHAUX_v_._Her_Majesty_the_Queen_.pdf [The courts issued a revised judgment on December 4, 2009 and here it is F._MAX_E_._MARECHAUX_v_._Her_Majesty_the_Queen_-_revised_judgment_.pdf ] This case will be of interest to those wondering about how the courts will deal with other charity tax shelter gifting arrangements.  Here is the French translation of the case Maréchaux, F.M.E. v The_Queen

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