October 31, 2006
CRA News Release: Warning: Tax shelters are risky
The Canada Revenue Agency (CRA) has issued a news release on its web stie warning Canadians of the financial risks associated with participating in certain tax shelter gifting and donation arrangements. These include gifting trust arrangements, leveraged cash donations, and buy-low, donate-high arrangements.
“Be wary of any ad that uses tax savings as a key selling point, said CRA Commissioner Michel Dorais. The CRA reviews all tax shelters and challenges any arrangement that does not comply with the Income Tax Act. We will audit the tax returns of investors who participate in these tax shelters.â€
The CRA has indicated that it is currently auditing many gifting arrangements.
For more information on this news release please see the CRA web site at:
http://www.cra-arc.gc.ca/newsroom/releases/2006/oct/nr061031-e.html
Posted by Taxes.ca Editorial Team [permalink]
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