The cra could easily shut all these schemes down simply by requiring that all of them be approved first before they are allowed to go to the public seeking donations. They could at least push for legislation requiring such. They don’t because the schemes are every bit as much a moneymaker for the cra as they are for thre promoters.

If anyone else has any questions, or wants to have a discussion I’d be happy to engage them.

I would like to point out though that both Tax Strategy’s that we offer have a standing reward of $10,000 to anyone who can prove that they are not compliant with the Income Tax Act. You would think that those who oppose these programs would be lining up to prove that don’t work and collecting a nice bounty in the process.

http://www.canadiancharitylaw.ca/index.php/blog/comments/canadian_charity_donation_tax_shelters_make_no_financial_sense_or_any_other/

It is impossible for a $1000 dollar donation to produce a $4000 donation receipt. Anyone who tells you that can happen is lying to you.

In order to get a $4000 donation receipt (and therefore a $2000 tax credit, in Alberta) you would need to donate $4000. A donation receipt must follow this formula:

$1 in donation (Cash or Property) = $1 Donation receipt

If you make the donation via cash, credit card, line of credit, property, or financing it makes no difference.

Some tax shelters are challenged in court, those that are not properly structured lose, usually very quickly. Those that are properly structured usually settle, neither side wants to risk losing, an indication of a properly structured Shelter is how long CRA takes to take them to court.

Some Tax Shelters have lost to CRA, but unless you read the actual court decision it can be hard to tell what actually happened. For example one of the GLGI donors was taken to court, CRA didn’t have its act together and agreed to a “Consent to Judgment” which favoured the donors totally (as in no repayment). However as this case was not argued in front of a Judge it does not set any precedent. CRA spun that one as a victory as the donors “Consented to Judgment”.

From the COIP program the 2006 donor that filed Notices of Objection in 2009 have yet to hear anything from CRA (If anyone has please let me know so we can get you the proper help).

I am always happy to answer any questions you have. I enjoy talking about these subjects.

I’d be happy to help or answer any questions involving Tax Shelters or the specific programs of Mission Life and GLGI.

Disclosures:

I do work for Fast Track.
I don’t care weather or not you participate.
I do care about making sure you have accurate information and expectations.

From some of the comments I think some people have the idea that the CRA has more power then the CIA, FBI, Delta Force and The Justice League combined. They are just a government agency, like any other, and they rely on the fact that if you want to fight them you are looking at a $200,000 (minimum) court battle, pretty heavily.

Mission Life is properly structured 3rd Generation Tax Shelter. Is participating a risk, yes, so is crossing the street. Is it a gamble, no, while we don’t know what the eventual court decision will be, the programs follow the letter of the law (CRA’s opinions are not Tax law, and are not unbiased).

Each person must decide how to arrange their own finances, I don’t begrudge anyone who doesn’t want to
participate is a Tax Shelter. I do think that the Richest Canadians use Tax Strategies to save or deffer Taxes to their advantage and I think we should do the same.

Thank you,