According to CRA In 2008, the value of charity tax shelter gifting arrangements has been reduced by 1/2. This is an important victory for CRA in curbing some of the more extreme charity tax shelter arrangements.
At the 2009 National Charity Law Symposium on May 7, 2009 in Toronto, Terry de March, the Director General of the Charities Directorate, in a speech to the CBA announced that in 2008 there was $465million claimed by 14,000 Canadian taxpayers for charity tax shelters. Obviously, that is quite a bit of money, but it is down substantially from 2007 when there was $944 million claimed by 33,000 taxpayers. CRA has gone after a number of ‘charities’ who were primarily tax shelter vehicles and revoked their charitable status. Furthermore, CRA is aggressively going after taxpayers who claimed deductions from these schemes.
By the way I may have gotten the numbers wrong - I was furiously typing into my blackberry many interesting points that came out of the speech.
Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario. He can be contacted at or at 416-361-1982. To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit http://www.canadiancharitylaw.ca or http://www.globalphilanthropy.ca
This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.
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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.