JANUARY 6, 2016
There are confirmed reports that CRA has begun issuing full, as filed, refunds to 2013 GLGI clients, with taxable interest included. Depending on if one has direct deposit or receives a cheque from CRA, they may see the refund before the mailed assessment.
2013 is the tax year after the 2012 bloodbath of 2+ year assessment delays, and no one (yet) getting the credits from their donation tax shelters.
All 2012 tax shelter clients MUST continue to fight for the refunds after the ASSESSMENT is received by 1) within 90 days, filing a Notice of Objection and 2) requesting a refund 120 days after the date CRA confirms filing of the objection.
The difference for 2013 is that CRA has lost 2 federal court rulings and its final appeal (2011 GLGI and 2012 Equigenisis cases) regarding the illegality of holding assessments for the primary purpose of deterring participation. Further, not enough time has passed for CRA to complete its sham audits which invalidated the donations from years 2004 through 2012.
In the case of 2013, luck of circumstance and timing as CRA is compelled to assess as filed. Simply, there is no further action required at this time.
Also, 2013 is the 1st tax year that CRA has the right and the Harper government blessing to collect half of amounts under dispute so when the reassessments come down the line for that year one can expect a notice to pay, an opportunity to object… and then a demand for payment of half (this is strong speculation).
Interesting the timing of these refunds about 2 to 3 weeks after someone with refund in hand may have considered participating in a tax strategy for 2015, if CRA hadn’t already killed this ultimate tax deferral industry. Back to their preferred 'gotcha in the box' solutions like RRSP's.
Many will say 'what's the point of getting a refund that they're just going to demand back in the future... with interest?'
The point is (always has been) what if one knew they had 2 to 3 year use of taxes they would have paid anyways? What will a class action case against CRA be able to recover from CRA? Are there asset and/or debt management strategies that could be employed to maximize the benefit? What measures can be taken to delay or frustrate CRA's collection of those tax dollars?
For everyone, but even more for the 2013 GLGI tax shelter clients, anyone not participating in the Merchant Law class action is behind the 8-ball.