Illegal Tax Saving Schemes Promoted by Charity Promoters

At the end of the year with Holidays, Christmas and Gift of Giving makes us all charitable and there are these Charity Promoters, who take advantage of your Good Will by tying your charity/donation contribution with tax savings.

Donations in excess of $200 each year will save you 44% in taxes. That is the amount you get as Tax Credit to reduce your overall tax bill.

This is where the Charity Promoters take advantage of you. They promise to give you a charitable contribution receipt many times more than the actual cash contribution. Even with your good will to help the needy, you fall hostage to your greed and give in to their shady scheme. These charity promoters offer you a receipt in the range of $4,000 to $5,000 for every $1,000 cash donation. Their reason for offering the additional money in the donation receipt is that your $1,000 will have such a great effect on the needy, that it could be easily valued at $5,000, so they can issue a $5,000 donation receipt for you.

The problem is this kind over valuation of Cash donation is in violation of Canada Revenue Agency regulation.

If you are given a donation receipt in excess of your Cash donation by a charity promoter, be sure that your tax return will be audited and your donation contribution for tax savings purposes will be disallowed

Donation to your favourite charity is a great way to help the needy also reduce your taxes. There are many other legitimate ways for tax savings other than inflating your actual cash donation.

CRA is actively prosecuting these kinds of Charity promoters.