The first class action lawsuit involving what CRA terms an “abusive charity gifting tax scheme” has settled at a Settlement and Class Counsel Fee Approval Hearing that was held on January 17, 2012 in Toronto. The material for that hearing is on the Scarfone Hawkins website and is quite interesting reading providing lots of interesting details about the scheme. Here is announcement from the Plaintiff’s lawyers Scarfone Hawkins LLP.
http://www.classactionlaw.ca/content/claims/Rochester/Rochester.htm
ROCHESTER/PROMITTERE/BANYAN TREE CLASS ACTION CLAIM
SETTLEMENT APPROVAL
The Ontario Superior Court of Justice approved settlement in this matter following a hearing on January 17, 2012.
The settlement involves a fund of $11,000,000.00 being established which will be distributed to Class Members on a pro-rata basis in accordance with participation in the Banyan Tree Gift Program.
The Court also granted a declaration that all loan agreements and promissory notes executed by Class Members in favour of Rochester in connection with the Gift Program are unenforceable by Rochester, its successors or assigns.
The Court approved a notice program which will be carried-out shortly. Notice will go out to all Class Members.
Individuals who opted-out of the class proceeding will have an opportunity to opt back in.
To do so, they will be required to complete and file and Opt-in Form.
It is hoped that full administration of the settlement can be carried-out very quickly.
We will be following-up with Class Members to attempt to verify information on hand in respect of their participation in the Gift Program.
Further updates will follow
Related Posts
December 1, 2019
CRA’s Top Five Audit Issues
If you have ever wondered what are some of the most common findings CRA has when it audits charities well here is the "Top Five Audit Issues":…
November 30, 2019
It is giving season time again – some thoughts on effective giving
It is now the giving season. We will hear lots from charities on Giving Tuesday and perhaps you will be inundated with too many emails on Giving…
November 13, 2019
Auschwitz-Birkenau Foundation is for now a qualified donee in Canada
There is a list called "foreign charities that have received a gift from Her Majesty in right of Canada". As the name suggests a group that gets a…