Tax Shelter Donation Programs

by Tax Guy - Burlington Accountant on April 25, 2008 Print This Post Print This Post

The Canada Revenue Agency has announced that it will audit tax shelter programs that involve “gifting trust” arrangements, “leveraged cash donations”, and “buy-low, donate-high” donations of property such as art. The Canada Revenue Agency has already reassessed several thousand tax payers and denied claims of approximately $1.4 billion of claimed donations.

If you have been approached by a promoter of these programs or are considering participating in one of these programs, you should seek independent advice.

If you have participated in one of these programs and have been reassessed, it is advisable to pay the money owed to avoid interest and penalties.

If a tax shelter donation arrangement has a tax shelter number, this does not mean that the tax shelter is approved by CRA. This number is for identification purposes only.

CRA Resources

  • CRA Warning – Donation Schemes
  • CRA Audits of Tax Shelter Gifting Programs

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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alvin December 19, 2008 at 1:37 am

CRA is requesting proof for payments to my nanny.. Requesting copy of checks from the bank will cost me $15 per check. I pay bi weekly.. This could be a lot of money.

I’m planning, instead of checks,.. banks statement showing check trxn, receipt voucher from nanny indicating check number, as well as employment contract from hrdc with my wife as employer. Will this work?

Tax Guy February 27, 2011 at 12:23 am

The CRA wants proof you paid the person. The statements don’t show who you paid

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