Canadian Humanitarian Trust.

[pgcanred]

You're assuming in that first bit that anything brought to trial would be a loss for "the same tax shelter", which in the case we're discussing is your tax shelter.

This assumption doesn't reflect well on your confidence in the prospects of a legal defense.

I was speaking hypothetically about tax shelters in general. So it doesn't reflect any level of confidence in any tax shelter.

[pgcanred]

Man, you've helped me get my post count up.

I will make the thousand posts yet!

[Merlocke]

I'll email you a scanned copy

So - where can I post this info on the tax act that everyone is so curious about? I'll email it to someone if they're willing to host it.

[Merlocke]

For all the people asking for info mailed to them - please include your phone number. Fed Ex won't ship without one and it's rather annoying. Normal Snail mail takes forever as well.

[grant]

So - where can I post this info on the tax act that everyone is so curious about? I'll email it to someone if they're willing to host it.

why don't you just post links in this thread to the the relevant CRA articles?

[Sewert]

deleted

[TrevorK]

Straight from the CRA website - which sounds a lot like CHT:
Gifting trust arrangements

In these arrangements, the investor becomes a beneficiary of a trust and receives property as a distribution from the trust. Often, but not always, the property has a lien attached. The investor then donates the property along with an amount of cash (to pay off the lien where applicable) to a registered charity and receives a donation receipt for the total of the cash and purported fair market value of the property. Typically, the total cash paid by the investor is about 30% of the amount on the donation receipt.

The December 5, 2003 amendments provide that the donation amount on which the tax credit is based will be reduced by any "advantage" that is in any way related to the gift. It is the CRA's position that the receipt of such property from the trust is such an advantage, and the donation amount will be reduced accordingly.


Now, the question isn't whether you think it's legal or not. The question is whether the CRA feels that this is legal. If they do not, they will reassess you and it will be up to you to prove your case otherwise.

If you jump into this, be prepared to defend it to the CRA. I'm not here to say whether it's legal or not (And I highly doubt anyone in this thread is), but one thing is for certain that there is a high probability of the CRA rejecting this.

The CHT people obviously believe this - as they have setup a legal fund.

[pgcanred]

I thought this discussion was rather dead.

But just to let you know I used an arrangement similar to CHT but without a lien and received a substantial tax refund. The CRA took a little longer as they took a closer look at my return but paid the refund with interest.

The comment from the CRA is certainly aimed at the likes of the CHT, however they haven't understood the arrangement. No donated monies were used to pay off the lien. The cash donation and gifts in kind would be two separate transactions involving two different charities.

The point of the defence fund is so that the individual would not have to fight any challenge themselves. All the transactions from any of these arrangements either stand or fall together.

[grant]

I thought this discussion was rather dead.

But just to let you know I used an arrangement similar to CHT but without a lien and received a substantial tax refund. The CRA took a little longer as they took a closer look at my return but paid the refund with interest.

The comment from the CRA is certainly aimed at the likes of the CHT, however they haven't understood the arrangement. [snip]

In your place I wouldn't count my chickens yet! The CRA can (and has) re-assessed people several years after they filed their return.

Best of luck to you however.

[pgcanred]

In your place I wouldn't count my chickens yet! The CRA can (and has) re-assessed people several years after they filed their return.

Best of luck to you however.

Thanks for the kind wishes. Rest assured I am not counting my chickens.

The CRA has also lost a number of cases this year.

[Daigo]

... and I almost forgot, the Canadian Humanitarian Trust is nowhere to be found on CRA's list of registered charities .

[brunes]

I love how people like to play this game where they assume for some strange reason that the CRA is staffed by complete idiots who haven't already thought about and fought against all these illegal sheltering schemes before.

If you want a tax shelter, move to Bermuda.

[elty]

Essetnailly.... you are buying some cheapo drug at a inflated price (but still lower than the "accessed value"). When you get busted by CRA, the donation amount is reduced to the money you donate. However the so call charity just make free money by selling you some $750 worth of cheapo drugs for $20000.

[Daigo]

CRA does not include the Canadian Humanitarian Trust
in its list of registered charities.

Reputable tax accountants will not process these donation receipts.

It is against CRA Rules (and thus, against the law) to
"Profit" from a charitable donation.

On what planet could anyone possibly think that it's OK
to net $5000 from a $1000 donation? Where do you
think the money comes from? Honest tax payers, that's
where.

I hope that everyone who has ever used this scheme has
to undergo a detailed audit and is fined $100 for every $1 they tried to steal from me.

[Rehan]

The audits are already being discussed in another thread:
http://www.redflagdeals.com/forums/s...d.php?t=496537

This one is ancient and better off locked.