When will the Kossow charity donation receipting case get some coverage?

September 29, 2012 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, What's New from the Charities Directorate of CRA, Canadian Charity Law, Ethics and Canadian Charities, Avoiding 'Charity' Scams

I sometimes laugh when I see some of the things that lawyers think are worthy of comment.  For example really esoteric cases.  Then almost two weeks ago there was an important decision in the extremely backlogged Tax Court of Canada - Kossow - it dealt with a type of scheme that CRA labels “abusive charity gifting tax schemes”.  In totality the different schemes involve about $6 billion in receipts issued and $3 billion dollars in lost tax revenues.  And there is almost complete silence.  It is unfortunate that so far no one in the media has picked up on the case.  For those who don’t understand the value of charitable donation incentives if the federal and provincial governments lose $3 billion dollars in tax revenue it either means a greater national debt, higher taxes or lower services.  Every Canadian taxpayer is paying hundreds of dollars more in taxes as a result of these schemes and they are backlogging the Tax Court of Canada.  Hopefully the victory for CRA in Kossow will be another nail in the coffin of these schemes - however, if no one knows that these schemes are being shot down then more gullible people will invest in the schemes.

Here is my post on Kossow:
http://www.canadiancharitylaw.ca/index.php/blog/comments/kossow_vs._the_queen_-_abusive_charity_gifting_tax_scheme_-tcc_decides_for_/

Here is the TCC link to Kossow:
http://decision.tcc-cci.gc.ca/en/2012/2012tcc325/2012tcc325.html

So far the only references I can find to this case are:

John Loukidelis at SimpsonWigle
http://blog.simpsonwigle.com/2012/09/art-donation-appeal-dismissed/

Neal H. Armstrong and Scott Armstrong
http://taxinterpretations.com/?p=9274

Natalie Worsfold - Tax Lawyer
http://www.taxpayersadvocate.ca/wiki/index.php?title=Ideas_Canada


If there are more let me know and I can update the post.

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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.

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