Cassels Brock & Blackwell has just been hit with a major lawsuit over a tax shelter scheme.  Here is a copy of the Statement of Claim in Lipson v Cassels Brock Blackwell LLP.  None of the allegations in the statement of claim have been proven in court.

According to Julius Melnitzer in his note “Cassels Brock sued for negligent tax opinion” he advises on May 11 that:

“A class action has been instituted against Cassels Brock & Blackwell by disaffected individuals who participated in a timeshare program operated and promoted by the Athletic Trust of Canada. The plaintiffs allege that the law firm’s Lorne Saltman negligently prepared a tax opinion leading them to believe that they could both support amateur athletics and reduce their tax liability. The participants received timeshare weeks and donated them, together with cash donations, to registered Canadian amateur athletic organizations. In return, they were issued charitable donation receipts and claimed the related tax credits. Ultimately, the CRA denied the timeshare portion of the donations, and the plaintiffs were collectively required to pay million of dollars in arrears of interest. None of the allegations, of course, have been proven, but the statement of claim is available online. Matthew Gottlieb, Davit Akman and Derek Ricci of Davies Ward Phillips & Vineberg represent the plaintiffs. “

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 or

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.