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Published: April 17, 2020

Last Updated: May 28, 2020

CRA warning about participating in “gifting trust arrangements” and “leveraged cash donation” tax shelter plans

The Canada Revenue Agency (Canadian income tax department) has just issued another press release warning Canadian taxpayers about participating in “gifting trust arrangements” and “leveraged cash donation” “tax shelter” plans. The position of CRA is that these plans are contrary to the Canadian Income Tax Act and that CRA will deny deductions to participants. While CRA may or may not be correct, and many of the plans being offered have supporting tax opinions, any participant should expect to be reassessed and have a fight with CRA, possibly in the Tax Court of Canada and Federal Court of Appeal, before the deductions are ultimately allowed or disallowed.


"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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