Although the Canada Revenue Agency (CRA) regularly issues warnings and has reassessed thousands of participants, some taxpayers are still participating in gifting tax shelter schemes.
Here’s what you need to know about such schemes:
The CRA will hold the 2014 assessments of participants in tax shelter arrangements
To protect the integrity of the tax system, the CRA will not assess a tax return on which a donation tax credit is claimed under a gifting tax shelter arrangement until after the tax shelter has been audited. However, taxpayers can have their tax return assessed before the tax shelter has been audited if they agree to remove the claim from their return. These procedures were also in place for the 2012 and 2013 tax years, as outlined in a CRA news release of January 10, 2014.