ICC, the CRA, Morris and Morris, and charitable donations.
- Thread starter fantasiafan
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Didn't hear of this before. just did a google in CCRA and ICC.
If what you are talking about is the "tax credit" scheme with the church and offshore donations then my gut reaction would be that CCRA can lay a world of hurt on people. Fair value vs appraised value. Location of product when appraised is important.
Clearly the scam was that goods were at offshore location ready to use at the inflated "fair value" there. First thing i would do as REv Can is attack the site of appraisal and factor in the adjustment for transport fees duties local taxes etc.
Theses scams preyed on people and I'm afraid that I gotta side with the Feds on this one. Ow it hurt to even type that.
If this is not what you are referring to then ignore what I said.
If what you are talking about is the "tax credit" scheme with the church and offshore donations then my gut reaction would be that CCRA can lay a world of hurt on people. Fair value vs appraised value. Location of product when appraised is important.
Clearly the scam was that goods were at offshore location ready to use at the inflated "fair value" there. First thing i would do as REv Can is attack the site of appraisal and factor in the adjustment for transport fees duties local taxes etc.
Theses scams preyed on people and I'm afraid that I gotta side with the Feds on this one. Ow it hurt to even type that.
If this is not what you are referring to then ignore what I said.
Close, but it was a loophole in the tax laws in 2002, 2003, and because of these practices the government changed the laws. Now it is not allowed because the laws have changed, but new tax laws arent retroactive are they?LancsLad said:Didn't hear of this before. just did a google in CCRA and ICC.
If what you are talking about is the "tax credit" scheme with the church and offshore donations then my gut reaction would be that CCRA can lay a world of hurt on people. Fair value vs appraised value. Location of product when appraised is important.
Clearly the scam was that goods were at offshore location ready to use at the inflated "fair value" there. First thing i would do as REv Can is attack the site of appraisal and factor in the adjustment for transport fees duties local taxes etc.
Theses scams preyed on people and I'm afraid that I gotta side with the Feds on this one. Ow it hurt to even type that.
If this is not what you are referring to then ignore what I said.
Lancs, could you send me the link of what you read?
I got burnt big time by a disallowed tax shelter. The worst part is that they reassessed going back 5 years. The interest charges were insane.
My advice stay away from tax shelters as RevCan has cracked down on many of them. If you want a bang for your buck, pay off your mortgage.
My advice stay away from tax shelters as RevCan has cracked down on many of them. If you want a bang for your buck, pay off your mortgage.
The key to looking at any investment and PARTICULARLY the tax sheltered ones is to look at the underlying business. If you took away the tax savings component would it still make sense? With most of the scam shelters the answer to that question is NO.
True....the thing that gets me was that it seemed kinda too good to be true back then and so I checked with the government who was on the side of ICC and all of a sudden their opinion has changed....is that how it usually goes??LancsLad said:The key to looking at any investment and PARTICULARLY the tax sheltered ones is to look at the underlying business. If you took away the tax savings component would it still make sense? With most of the scam shelters the answer to that question is NO.
fantasiafan said:True....the thing that gets me was that it seemed kinda too good to be true back then and so I checked with the government who was on the side of ICC and all of a sudden their opinion has changed....is that how it usually goes??
Unless you have a written Advance Ruling from them and the particulars exactly match the advance ruling they have plenty of latitude to "re-evaluate" their position.
Without knowing the exact facts of this case it is common that the promoter will only tell rev what they need to to get any kind of comfort then they will try to push that envelope really hard. What would get Rev about this kind of deal is the greedy buggers probably sold a ton of the deals and that causes a blip on their tracking system plus it is the kind of thing no-one would do without the tax wedge thus it just cries out for a set aside.
So this is what it feel like I guess to turn around, drop my pants, and bend over.....damn taxes!LancsLad said:Unless you have a written Advance Ruling from them and the particulars exactly match the advance ruling they have plenty of latitude to "re-evaluate" their position.
Without knowing the exact facts of this case it is common that the promoter will only tell rev what they need to to get any kind of comfort then they will try to push that envelope really hard. What would get Rev about this kind of deal is the greedy buggers probably sold a ton of the deals and that causes a blip on their tracking system plus it is the kind of thing no-one would do without the tax wedge thus it just cries out for a set aside.
