Posted on: 30-01-08 06:41:58
wow, this is getting interesting!!
alright, i made a massacre by using the word 'return', it should've been 'refund'!
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Carpe Diem
It was interesting right from the beginning.
This is what CRA has to say
How is my tax credit calculated? In 2007, the first $200 you donate is eligible for a federal tax credit of 15.25% of the donation amount. After the first $200, the federal tax credit increases to 29% of the amount over $200. Generally, you can claim all or part of this amount up to a limit of 75% of your net income. For gifts of certified cultural property or ecologically sensitive land, you may be able to claim up to 100% of your net income.
Can you 'enlighten' us and our taxes how your magical tax consultant is able to get you twice the amount as refund?
Quote:
Originally posted by rainwalkin
wow, this is getting interesting!!
alright, i made a massacre by using the word 'return', it should've been 'refund'!
my tax advisor said: if i put $1000 in rrsp, i get a refund of approx $300. if i donate $1000 the refund is around $2000. this sounds like magic to me but i am told by others it is true.
so if i 'donate' $2000 and earn a $4000 refund, then i put this money into rrsp how would that be! this is what i have been told and i am waiting to file the tax this year and further waiting to see what happens. i hope i have been able to communicate myself this time!
how does this sound investpro. does this sound like some kind of scam?
Quote:
Originally posted by rainwalkin
wow, this is getting interesting!!
alright, i made a massacre by using the word 'return', it should've been 'refund'!
my tax advisor said: if i put $1000 in rrsp, i get a refund of approx $300. if i donate $1000 the refund is around $2000. this sounds like magic to me but i am told by others it is true.
so if i 'donate' $2000 and earn a $4000 refund, then i put this money into rrsp how would that be! this is what i have been told and i am waiting to file the tax this year and further waiting to see what happens. i hope i have been able to communicate myself this time!
how does this sound investpro. does this sound like some kind of scam?
The advice given by your tax adviser is misleading. Most of the tax payers who contributed in such charitable schemes are now being rearview by CRA and being taxed. I have been getting at least one tax payer (Not my existing client) on a daily basis who have been reassessed and taxed by CRA. CRA has disallowed these charitable donations stating them FALSE. The tax payers have also lost their original contributions. CRA has reviewed over 26000 tax returns and been reviewing over another 65000 tax returns. CRA is coming heavily on all these charities. You will be seeing lot of advertisements in newspapers asking to attend a seminar wherein tax lawyers, CAs and such charities are asking those who involved in these charities to come and join hand to defend them from CRA.
Do not you think it is totally illogical that by contributing just $2000.00 one gets a refund of $4000.00? DO NOT GO FOR IT OR BE READY TO FACE CONSEQUENCES, MAY BE ON A LATER DATE. Your tax accountant will be making 10-15% commission on the money you will be donating. In past I was also contacted some of these charities and was asked to collect donations and earn commissions which I denied. Moreover, the tax refund can be used to put in the RSP in the next year.
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Live and Let Live. Together we can make a difference.
DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
(Loans, Mortgage, Tax, Accounting, Investments)
can you give me some more information please?
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Carpe Diem
My roommate last year an accountant was mentioning this scheme ... One of his relatives was asking if this is a legit.
The scheme was giving money to charity and getting a 5 times the amount deductable from income for tax purpose. He did some invstigation and said that there were a lot of such agencies that did it..
I laughed when i heard about it ..There is a simple rule of thumb , if something sounds too good to be true then stay away from it. it is a trap..
I think one of the CPA replies echos the same..
Quote:
Originally posted by rainwalkin
can you give me some more information please?
What more info do you need?
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Live and Let Live. Together we can make a difference.
DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
(Loans, Mortgage, Tax, Accounting, Investments)
I donated 5k in 2005 and 5k in 2006 to ICAN thru OK TAX (Mr Abid ). ICAN has been blacklisted by CRA in 2007. I got two letters from CRA stating that audit for both these years is in progress. So my returns may be reassessed any time.I am not sure how much refund I may have to give but they may ask for details anytime.I know now that it was a mistake to donate to these kind of companies which give the receipt four times the donated amount.Both these years ,I sent the returns by mail for approval (I did not efile) and I thought that in case anything was illegal in those returns,they wud not approve but to my surprise ,they approved both these years and now I have got letters stating that audit is in progress. Anyway the moral of my DUKH BARI DASTA is
"plse do not donate to these kind of companies.Save your money in RRSP"
