Important Update for Donors to Global Learning Gifting Initiative

There have been important developments in the ongoing battle between donors to the Global Learning Gifting Initiative ("GLGI") program and the Canada Revenue Agency.  While most taxpayers have filed their Notices of Objection and these are being held in the appeals division, 16 taxpayers from British Columbia have had their Objections denied by the CRA and have filed appeals in Tax Court.  The Hearing is currently scheduled for June 11, 2012 but the CRA have not confirmed this will be considered a test case for all taxpayers. 

I have made copies of the court documents available for other donors to read as they give some important insight into the alleged problems with this donation scheme and the final pages of the Reply gives a breakdown of how the funds given to the charities were spent. It appear this litigation will not be directly addressing the proposed changes in legislation announced in 2003 and 2005. You can also check the Tax Court of Canada website for updates on the group court file status.

I have been advocating that taxpayers consider seeking a settlement in charitable donation cases but the CRA are not responding and I believe they are waiting for the Court decision before taking an official position on these files. My suggestion to settle does not mean I am expressing a professional opinion that taxpayers will lose in Court.  Proposing a settlement is only in the interests of those who have determined they do not wish to wait for a Court case outcome and who want a faster resolution of this problem.  Personally, I think it is the most fair resolution in these cases. I also think that filing a request for a settlement to be considered gives you proof that you tried to settle this case and if in 2012 the CRA offer a similar settlement after the Court decisions, you will be in a better position to argue for interest relief. Many people I have spoken to just want this to be over and accept there are problems with their donation claim but want to see the amount they owe reduced to a reasonable and manageable sum.

In the event the CRA win in Court, all donors should still dispute any penalties applied in their personal situation and seek taxpayer relief to have the interest that has accumulated reduced.

I am trying to help taxpayers share information about their situation and to build a clearer picture of how many people would rather accept a settlement that wait for the outcome of litigation.  The CRA apparently settled the 2002-2003 Global Learning Systems version of this program with donors to allow the cash value as a donation so there is no reason to think a compromise cannot be reached for this program.  If you are interested in sharing information or discussing the possibility of a collective settlement proposal, please feel free to complete the form below.  I will continue to update my site with information received and to help all taxpayers keep up to date with developments in these cases.  

Name		Tax Year
City		Date of Re-Assessment
E–mail		Amount of Re-Assessment
Phone		Were you assessed Penalties?	Yes No
Cash Donated		Did you file an Objection?	Yes No
Courseware $		Have you paid the amount in dispute?	Yes No

Additional Comments:	I would be interested in a settlement to allow my cash donation only I would like to request a call back (further details sent to you by email)
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