On January 27, 2020, the Honourable Justice Ronald MacPhee of the Tax Court of Canada (TCC) rejected an appeal from Alexandru Tudora dealing with the Global Learning Gifting Initiative Program.  I must admit I was not really paying attention as I am sick and tired of reading and blogging about these really bad charity schemes.  However, I noticed that the Globe and Mail journalist Patrick Brethour had two very good articles on this decision including Federal tax court rebuffs appeal in one of the biggest tax scams in Canadian history and CRA seeks to recover hundreds of millions in charity tax ‘sham’. So if you are interested you might want to read his two articles.

In the decision in Tudora v. The Queen MacPhee noted:

[42]  In Mariano, Justice Pizzitelli came to the following conclusion:

[49] In the end, I cannot see how any person participating in such a scheme, regardless of whether such person had an honest belief in the value of the Licences he expected to receive or not, can argue, based on the manner in which the scheme was marketed and in the makeup and integration of the Transactional Documents that deliver it, that he or she expected none other than to profit from, be enriched or not be impoverished by, such participation, and thus not have the requisite donative intent.

[43]  My ruling should be and will be consistent with Mariano concerning donative intent. I find that the Appellant, as a result of his participation in this arrangement expected to be enriched. He therefore did not have the requisite donative intent.


Also please do everyone a favour and don’t invest in any new schemes promising outsized tax benefits.