Topics: News, What's New from the Charities Directorate of CRA, Canadian Charity Law, Ethics and Canadian Charities, Avoiding 'Charity' Scams
On January 23, 2012 the National Post published an article entitled “Judge OKs suit against charity tax ‘scheme’” by Joseph Brean which discusses a class action lawsuit against various parties relating to the “Donations for Canada Gift Program”.
Here is the link to the article:
The articles notes:
An Ontario Superior Court judge has certified a massive class-action lawsuit over a “scheme” in which thousands of Canadians submitted inflated charitable donation receipts the taxman refused to accept.
“When Michael Cannon heard about the Donations for Canada Gift Program - an opportunity to obtain a $10,000 charitable tax credit in return for a $2,500 donation - he thought it was too good to be true,” wrote Mr. Justice George Strathy.
“It was. A few years later, his tax returns were reassessed by Canada Revenue Agency and he had to repay his deductions, with interest. The only thing he received for his ‘donation’ was a tax bill.”
All allegations have yet to be proven and at some point there will be a trial in the matter.
[Update] Here is another article:
“Charity gift program subject of suit” http://thechronicleherald.ca/business/54148-charity-gift-program-subject-suit
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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.