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