The Tax Court of Canada recently had a judgment in the matter of Cassan v. The Queen.  It dealt with the EquiGenesis 2009-II Preferred Investment Limited Partnership and Donation Program which was offered by EquiGenesis Corporation.  It is a lengthy and complicated decision.

The court found:

[355]     For the foregoing reasons, I conclude that the arrangements respecting the Program Loans are not bona fide arrangements in the sense contemplated by paragraph 143.2(7)(a) of the ITA. Accordingly, the arrangements to repay the principal and interest owed under the Program Loans are not bona fide arrangements and the principal amount of each of the Program Loans is a limited-recourse amount for the purposes of subsection 143.2(6.1).

…

[363]     Accordingly, the amount of the advantage in respect of the gifts made by the Appellants to TGTFC is greater than the amount of those gifts even assuming the fair market value of the gifts is equal to the face amount of the gifts. As a result, the eligible amount of the gift made by each of the Appellants to TGTFC is nil.

The full decision can be seen at Cassan v. The Queen.