# Charity Tax Shelter Schemes - Legal?



## MACinist (Nov 17, 2003)

Ok... so I know a couple friends that donated to this charity called GIGL.ca via an accountant that told them about it and they were able to get a return of 5 to 1 on their charity donation. Basically, they donated $5000 and were able to get a tax refund of $25,000! Yeah, seems pretty unbelievable. Since finding out about this, I have realized that many more people are doing this just by bringing it up during random conversations. Recently, I have read many articles how the CRA is cracking down on these returns. I typically stay away from things that seem too good to be true, and since I don't know much about Canadian tax laws, do any of you guys know if this is just a cat and 3-year mouse game or do thousands of Canadians run risk of paying hefty fines and interest on these claims?

TheStar.com | Business | Questionable donations trapping thousands of Canadians


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## guytoronto (Jun 25, 2005)

If you try to do the tax 'run-around', then you deserve to get burned.

If you want to save on taxes, do it in a 100% legit way. Otherwise, get ready for an audit.


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## Vandave (Feb 26, 2005)

Tax cheaters suck.

I hope CCRA comes down hard on people dumb enough to fall for this scheme and the people who perpetrate it.


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## MACinist (Nov 17, 2003)

I'm just shocked that the CRA has not taken a tougher stance on this. If I read some article correctly, the current "popular" scheme has been going on since 2004. This is probably hundreds of millions in refunds. It almost seems unfair that those of us who follow tax laws to the tee risk more penalties from doing a small oversight then these people that "steal" thousands blatantly. 

I'm sure many of these people aren't "dumb" but rather play so...


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## Vandave (Feb 26, 2005)

And it isn't just 'charities' pulling this crap.... it is also religious groups.

I know somebody who was told to make a similar donation to their church and that they would get more than their money back.  

CCRA should pull their tax free status.


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## hayesk (Mar 5, 2000)

The only way to do this is if the organization writes you a receipt for much more than what you gave them. This is tax fraud by both parties. You cannot claim you didn't realize this if you submitted a receipt worth more than what you gave.

As for religious groups, I don't understand why they even have tax-free status. Especially the ones who build communities for their rich buddies so they can live in mansions tax-free.


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## Vandave (Feb 26, 2005)

I just heard about this one:

UBG Home Page

This stuff really pisses me off. I work hard and pay my taxes and some people think they can get away with this crap. I would rather see CCRA fine them BIG time.


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## MasterBlaster (Jan 12, 2003)

.


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## jlcinc (Dec 13, 2002)

TheStar.com | Investigation | $1.4B tax scams nail donors

I remember reading another article in the Star about the charity tax schemes that the government is going after the people claiming deductions.

"Now, at least 106,000 individual Canadians are learning the Canada Revenue Agency considers these schemes a sham, and wants to claw the money back. Some also are being hit with major financial penalties."



John


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## K_OS (Dec 13, 2002)

Do it the legal way but any money that you can put back in your bank account instead of the governments is a good thing.

Laterz


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## MACinist (Nov 17, 2003)

The legal way doesn't give you 5 to 1 return on donation/contribution. Hence the obscene number of Canadians doing it. What gets me is that 90% of these people know there is something fishy or illegal with it but play dumb and plan on playing dumb if the CCRA ever went after them.


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## eMacMan (Nov 27, 2006)

Thing is that it may take CRA a while to catch on and catch up. Once they do a lot of people get audited. The penalties end up far overshadowing what people hoped to save and the individuals involved become an automatic target for future audits. 

Is task fraud worth that sort of risk?


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## Dr.G. (Aug 4, 2001)

eMacMan said:


> Thing is that it may take CRA a while to catch on and catch up. Once they do a lot of people get audited. The penalties end up far overshadowing what people hoped to save and the individuals involved become an automatic target for future audits.
> 
> Is task fraud worth that sort of risk?


"Task fraud" is always worth the risk, in that someone else does the task. However, tax fraud is NOT worth the risk, in that you do the time. Paix, mon ami.


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## kps (May 4, 2003)

eMacMan said:


> Thing is that it may take CRA a while to catch on and catch up. Once they do a lot of people get audited. The penalties end up far overshadowing what people hoped to save and the individuals involved become an automatic target for future audits.
> 
> Is task fraud worth that sort of risk?


Never, ever reply to a dead thread which has been revived by a questionable poster who's post inevitably gets deleted by the mods.


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## SINC (Feb 16, 2001)

Ah, now it begins to make sense, thanks kps. With that post missing, I could not figure out why eMacMan made the post or what he was talking about. Spam gone, coherence too. Good advice: check the date before posting to a three year old thread.


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## eMacMan (Nov 27, 2006)

"Task" fraud =Spell cheque fall

I see the spammer also left some droppings in my message box before he was hopefully permanently relegated to the cyber dump.

And yes I too failed to notice that it was a Zombie post.


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