Charity Scheme Attract New Penalties

For the 2013 and future tax years, CRA will be allowed to collect up to 50% of the taxes they think are owing as a result of your participation in the scheme, even if you decide to file a Notice of Objection.

They are betting on the fact that the donation is not legitimate and you’ll have to prove otherwise.

Tax and financial advisors should include in their planning  discussions the implications of participating in an abusive charitable donations tax shelter:  in short,  you’re opening yourself up to a sure audit. These schemes generate tax savings that far exceed their cost—buy low, donate high schemes, gifting trust arrangements and leveraged cash donations are listed by CRA as abusive. It’s best to stay away from them.