OPGForce
Hello Beyond,

Has anyone ever donated to the "Canadian Humanitarian Trust" and received "tax credits" in doing so (2 tax receipts)? Is this legit???

Any feedback would be much appreciated.

Thanks. :thumbsup:

Xtrema
If the charity is legit, all your donation would be tax deductible. Nothing illegal about it.

Only 2 things you need to worry about:

A) What do these people do with the money, it is really helping people. Some so call charities have a managment fee of over 90%. Which mean its staff doesn't work for free and very little actually ends up in the hands of people in need.

B) Are you getting tax credit more than what you paid in? There are a few ways to do this but government has already caught on and put a stop to those schemes. I know 1 creative scheme that involve medical supplies that worked af few years back.

OPGForce

Hey, this sounds like the same "scheme". Essentially, you purchase medical products at "whole sale" to donate. In doing so, you receive a tax credit. Then, when those medical supplies are sold at "fair market value", you receive another tax credit.

What do you think....sounds fishy? Appently, Canadians donated $100 million last year to this. :dunno:

Xtrema

Doesn't work anymore. You'll be toasted if you ever get audited.

OPGForce

Did you get burned from this kind of deal in the past, or know of anyone that has? What are your sources for this information?

bigfish90210
There is some information on the Canadian Humanitarian Trust at CHT Fund

It seems the trust has been tested in the courts in 2005.

TrevorK

I don't see any time the trust was tested in court. I see them giving their opinion on why they think it's legal.

The part I find strange is that they claim it's 100% legal, yet when they talk to you about investing they mention they have a huge legal fund setup.


If it's 100% legit, then why do they need a huge legal fund?

TrevorK

I know of several people who invested during the 2005 tax year and received a return because of it.


Does it make it legal according to the CCRA? Of course not. If they are audited, according to the CCRA's own definiton, they will be reassessed.

Here is the CCRA's Nov. 2004 warning about these:
http://www.cra-arc.gc.ca/newsroom/f.../1125tax-e.html


If you don't believe me, do a search for previous scams such as these. The one below is the art-flipping one, which has been popular in the past:
http://www.investmentexecutive.com/...Mem=&nbNews

bigfish90210
So are you saying that because CRA does an audit that the individual has broken the law?

Isn't an audit to confirm or ask for more information? I think you need to think that one through a bit. Why would they bother doing an audit? Why not just fine the person or drag them throught the courts?

There is information regarding the CHT at Canadian Humanitarian Trust Canadian Humanitarian Trust

But calling it a scam while they are allowing people who are audited to continue the donations is ludicrious.

Let's be a little more sensible.

TrevorK

Because CHT comes with a Tax Shelther ID they can easily identify every return that has used CHT.

Because of this, when they audit you it will typically be because they believe that by using CHT you have violated the tax laws.


That does not make you guilty, but that does mean you will have to defend yourself, and your interpretations of the laws. And the links I've provided show how well people have done with previous schemes like this.

Show us some proof of people audited, who came away free and clear. I've yet to see anyone I know from last year, who invested in CHT, get audited.

This doesn't mean it isn't going to happen, it just means it hasn't happened yet, and still may.


I've provided links above to show how people in similar schemes were audited and forced to pay back. I've also provided a CCRA article detailing this scam.

Please provide us some evidence, from a reputable source, to show the legitemecy of your method. I know I have provided reputable evidence already, before talking about being "sensible" perhaps you should provide some of your own?

bigfish90210
Even with rev can's recent update I wouldn't get too worried. The people who are getting audited just have make sure they can prove the donation.


If you go here http://www.canadian-humanitarian-trust.blogspot.com you will see its actually well protected. The main site is pass protected. That blog has all the info.

Until you hear that people are being fined (meaning that it's been stopped by cra), I think it's a good donation.

Firetiger
You've got it wrong Bigfish. When CRA reassess they simply reverse the deduction and you are asked to repay the money (refund) plus interest. If you want to fight it then the onus of proof falls on the taxpayer and he/she must file an appeal with the Tax Court, an expensive and time consuming proposition. You are listening to the hype from the promoter. I agree with Trevor, show me where a taxpayer has successfully appealed a reassessment.

For your information, I'm a tax accountant and I've encountered this before.

sexualbanana
Not to mention that your 'donation' is often equivalent to a large chunk of people's annual pre-tax income, so when that gets deducted it looks incredibly fishy

bigfish90210
I am not sure what you are asking me? You want me to show you where someone got audited?

I do know a couple of people who have been audited and after showing them the required paperwork ...all was good.

Now you want me to show you that? (scratching head)...well that may be a bit difficult. Oh....I get it you want me to post their name and number...right .....:dunno:


I think that blog tells you all.

Firetiger
"I am not sure what you are asking me? You want me to show you where someone got audited?" .... No, they're all getting audited.

"I do know a couple of people who have been audited and after showing them the required paperwork ...all was good." I don't believe you, prove it to me. If they successfully defended an audit then they should have no aversion to speaking to me about it. Yes, give me the names and contact info.

Listening to the "company's blog" means absolutely nothing .... it is all hype. Just because someone says that they did something doesn't mean it's true. Why don't you contact CRA and find out for yourself? All I can tell you is what I see going through the courts and what I hear from my discussions with auditors and other senior individuals at CRA. As a matter fo fact, CRA are publishing advertisements in local newspapers advising people to be wary of such schemes. I'm sure these ads have been runnning in your area. Check it out.

bigfish90210

I was just trying to let people know where you can find more information on the topic...but thanks for the advice.

:thumbsup:

southsidechick
I realize these posts are fairly old but if anyone reading this is even considering having anything to do with the Canadian Humanitarian Trust - RUN AS FAST AS YOU CAN! My senior parents donated to this giant scam starting in 2006, for 3 yrs.. The CRA granted this organization a registered charity designation. They have since revoked this and have now come to my parents after the fact and are demanding $70,000+ and refusing to even recognize the actual amount donated. My mother has since deceased and they are going back and auditing her over this. My father is nearly having a nervous break down. The vultures at CRA are calling him constantly harassing him even though he has lodged an appeal hoping they will atleast recognize the amount he donated. Supposedly the Humanitarian TF people have hired a law firm in Ontario to fight a few test cases in the East coast to try and change the law. I am trying to find the listing of these cases as I'm starting to doubt they actually exist.

The Canadian Tax Dept. or CRA is saying barely 3% of anything donated actually went to any 3rd World Country medication programs. Most of it was eaten by the admin. and the founder, Mr. Stephen Rosen, a Toronto Tax Attorney. I can't believe CRA allows this kind of crap to go on and then suddenly pulls out and victimizes people who thought they were being financially prudent and helping others at the same time. CRA should recognized they made a mistake and atleast allow people to deduct the actual amount donated. I went to a few of these fund raising dinners and saw there were a number of similar couples who likely are going through the same nightmare. It's my understanding that everyone who has ever used this as a donation is being audited and forced to repay and tax deductions claimed as a result of donations to this program.

If anyone you know gets invited to one of these free - BS dinners - do not go!!! They also tried to rename the organization (i believe) and then tried to start a RRSP/GIC type investment program. Well good luck. I don't wish this on anyone. God help us to get out of this mess.if anyone reading this is even considering having anything to do with the Canadian Humanitarian Trust - RUN AS FAST AS YOU CAN!