[Carole]

I have another client who has donated to the Charity scheme and here is a letter that was received. Once again, the client did this before consulting with anyone, just relied on the promoter that it was all good.

Seems pretty definitive on the subject, but Im sure those with legal $$$ to spend will still argue it.

 CRA_charity.pdf (582.57K)
Number of downloads: 114

[James1]

snowplowguy, on Mar 30 2008, 09:25 AM, said:

I'd love to spend a week or so visiting this "Aggressive Tax Planning Section" of the CRA..... sounds like an exciting unit. :)

Me too

Sign me up. I would love to nail some aggressive tax planners ;)

james

[David Blue]

What everybody keeps forgetting is that this would not happen if the "Charities Divison of the Canadian Government would get the budget to start doing their job and do their job.
It takes excatly 72 hours and you can have a Registered Charity Number. At isssue is the fact that they are not being scrutiniuzed evough by CRA. There are a dozen of those "Scams" now running in Alberta.
What they have now done is utilize small Charities for your inititial donation. I call them flow through charities for lack of a better term.

You want a Tax Shelter number no problem another 72 hours for one of those.

What needs to be done is for criminal prosicution of a few of these promotors to go ahead.
and
For CRA to start Auditing the thousands of "Mom and Pop charites out their that are becoming part of the problem.

Start taking away the RR numbers. Stop issuing Tax Shelter Numbers like they are gravy.

The general public dosent understand that the government gives out account numbers willy nilly for anything. Due diligence, nothing.Sign a form.

The public are getting hurt because CRA /Government of Canada are not doing their jobs.

They can legislate smoking, and other rights, but to protect the public from these scam artists, they do nothing.

CRA and Charities Canada could stop this crap in year one, but nooooooo, lets wait till year 3 and then screw eveybody over. Penalties, Interest. etc.

and the Promotor goes home scot free, to his home overseass or where ever.

Thats my rant and I have seen, that type of letter before, What I wish would happen is a class action suite against CRA and Charities Divison for not protecting Public from this crap
allowing it to continue and not effectivly dealing with it in a timely fashion.

[James1]

David Blue, on Mar 30 2008, 12:30 PM, said:

What I wish would happen is a class action suite against CRA and Charities Divison for not protecting Public from this crap allowing it to continue and not effectivly dealing with it in a timely fashion.

Sounds like something you can start during the off season. How much should we sue for? ;)

James

[David Blue]

This whole situation is in CRA's best interest not to deal in a timely fashion:

Employment ( huge numbers)
Back Interest and Penalties to Tax Payers (Hugh)

The lawyers and Accountants ( That give a Quasie Legal and Tax opinion that it should work)
But I'm not accountable if it does not. ( Every charitable scam one has them on retainer.

These Accountants and Lawyers should be held to task by their associations.

Lets only hit the tax payer one year at a time., then on the next two years we can hit for extra penalties .

By the time I would be done, It should be worth a couple of Billion.

I would even go after the Lawyers, and Accountants and their associations for not reigning in their members.

The crazy part is that in the U.S. it might work, In Canada, I doubt it.

All accounting and legal bodies talk about ethics. I am having trouble finding them here.

[JohnV]

Yes, thanks Carole for sharing..

RE BERT, Actually, it appears CRA only denied the cash part because no proof of a cash outlay was received by them. I believe they did leave the "door open" for the tax payer to supply proof of payment...at which point the taxpayer might be able to claim the donation...BUT...it was interesting to note they delved into the nature of donations...and the intent of a donation...in their arguments...meaning they could theoretically deny the "donation" even when the cash outlay proof is submitted....

And David, we don't want to throw out the baby with the bathwater. Government is trying to make things easy for everyone...but don't forget, even if it was difficult, the sleaze on the street would still find it worthwhile getting the paperwork they need. What REALLY needs to happen is that the public gets educated...now that is a tack that might be navigatable...and of course the goverment has to get tough with the sleazy promotors.

[David Blue]

An update:

Client went into a scam of these. The president called from down east. I Suggested that the promotor was not obove board when selling the product to my client.

THE HAPPY NEWS IS:

My client is getting a complete refund of all his money from the investment. We are sending back all tax shelter forms and donation receipts, all is being canceled and the $ 32,500 line of credit loan is now canceled.

My client is jumping for joy.

The promotor in Alberta is not happy with me. O'well.

So just a thought, when clients come in with this garbage, their may be a way out. I made noise about legal action, misrepresentation, etc. Client gets refund.

I will be taking this approace with any client coming into my office with this stuff.


and John , you are correct of couse, " EDUCATION" is the key.

also.

Second client passed an 2003 personal audit. with donations with Canadian Humanitarian Aid. Pass a local audit (Edmonton Office) , it was accepted, That was in February 2007, June 2007 he gets a letter from CRA Winnipeg, that Edmonton office made an error. and the rest of the letter is the same as the one posted. That was interesting I thought.

[JohnV]

Nice work David...your client has to be happy with that one...now give him a nice whopping bill and tell him that is his tax shelter :)