www.carters.ca
www.charitylaw.ca
c)Leveraged
Charitable Donation Tax Shelters
•A typical scenario would involve a taxpayer
–Borrowing a pre-arranged
loan
–Donating the loan and some
additional cash to a
charity
–Receiving a
donation tax receipt for the total amount
donated
•The promoter usually arranges
for the taxpayer to enter into some form of insurance
policy and/or investment for a return that would
be sufficient to pay off the loan
•The tax credit would exceed the
economic cost of the donation to the charity
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