Dear Taxpayer,
You have been identified by our client, Profitable Giving Canada, as a participant in one or more of the COIP, RLG, MLF, and PGI tax shelter programs between 2006 and 2013 (the “Donation Programs”). The Canada Revenue Agency (the “CRA”) HAS REFUSED OR WILL REFUSE your tax credits for participating in the Donation Programs.
I am legal counsel defending the Donation Programs and representing taxpayers for the only test casesthat will be litigated before the Tax Court of Canada (the “Test Cases”). As far as we know, the promoters of the Donation Programs are not, and will not be, appealing on your behalf.
I am contacting you today, on behalf of Profitable Giving Canada, to inform you that our litigation against the Department of Justice, Canada has reached a point where you now have A CHOICE TO MAKE BETWEEN TWO OPTIONS.
Please READ THIS LETTER CAREFULLY to help you make an informed decision.
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OPTION 1 : JOIN OUR LEGAL DEFENCE |
YOU WILL SOON RECEIVE a letter from the CRA, on CRA letterhead, asking you to sign an “Agreement to be Bound”, which will be attached to the letter. This letter will be sent out to thousands of taxpayers across Canada who have, like you, participated in the Donation Programs. Maybe you know someone who has participated in the Donations Programs but has not received this letter? If so, please share this information with them.
If you wish to have the full benefit of the legal defence undertaken against the Department of Justice and the Test Cases, YOU MUST DO TWO THINGS:
- YOU MUST SIGN THE AGREEMENT TO BE BOUND and return it to the CRA within the deadline.
- YOU MUST SETTLE YOUR DONATION DEBT that you incurred by participating in the Donation Programs. This is a crucial and essential part of the legal defence by the Test Cases. All of the test cases have settled their donation debt in full.
If you want more legal information about the importance of these two actions, you may attend one of the information sessions in Edmonton and Calgary listed below.
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OPTION 2: GO IT ALONE |
You may contest your tax assessment(s) on your own, file your own notice of appeal to the Tax Court of Canada, and pay your debt obligation back to the promoters, including interest. The promoters are not defending the Donation Programs in court, and we fully expect them to enforce all their legal rights to be repaid the donation debt and applicable interest.
It is a complex and difficult task to defend yourself against the full force of the CRA in court.
If you choose this route, you may respond to this email with your updated contact information and I will send you information on what you can do next, and how to file an appeal to the Tax Court of Canada on your own if the CRA proceeds against you and confirms your tax assessment(s).
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WHAT NEXT? |
REMEMBER: if you miss the deadline to sign the Agreement to be Bound, it will be too late and you will be on your own.
DO GOVERN YOURSELF ACCORDINGLY
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BCF LLP |
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Joel Scheuerman
Partner, Lawyer