In Herring v. The Queen and related cases, the appeals of a number of different people who had ‘invested’ in the Banyan Tree Foundation’s ‘leveraged donation program’ were dismissed. These investments, what CRA used to call “abusive charity gifting tax shelters,” go back to around 2002, and it is unfortunate that the TCC is so slow in disposing of them.

The judgement notes “These appeals are “lead cases” pursuant to section 146.1 of the Tax Court of Canada Rules (General Procedure), SOR/90-688a. Approximately 328 taxpayers, including the Appellants, have agreed to be bound by the results herein.”. Anyone interested in public policy relating to the charity sector should certainly read the case – it shows how some people have a very different view of charitable donations than other people. It also explains some of the Department of Finance’s reticence to add more tax benefits when people donate to registered charities.

You can read the original judgement above or on the TCC website.

There is also another decision relating to the Banyan Tree namely Crane v. The King. [PDF] Mr. Crane had invested in the Banyan Tree Program. What is interesting is that he is a retired judge of the Ontario Superior Court of Justice and he invested in the scheme while he was a judge. In this case, similar to Herring above, the TCC judge determined that there was no gift and dismissed the appeal.