Ombudsman sounds alarm over tax-shelter donation schemes

Canada’s Taxpayers’ Ombudsman, J. Paul Dubé, has released a report calling on CRA to improve communications related to warning the public about tax-shelter donation schemes.

He also recommended that CRA monitor trends in the structuring of, and investing in, questionable tax schemes and make such information available to the public in a timely manner.

Read: Court nixes leveraged donation tax credits

Despite CRA’s efforts to stop abusive tax donation schemes and legislative changes to help it do so, these schemes continue to taint the charitable sector.

“Many complaints have been received by my office from taxpayers that were unaware of the tax consequences when they participated in abusive tax donation schemes,” said Dubé. “That means, the CRA needs to improve overall communications on this issue including raising awareness of the consequences of participation in such schemes. Ultimately, these efforts will help prevent innocent individuals from falling victim to promoters of abusive tax donation schemes.”

Read the full report here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.