October 20, 2016
2013 GLGI Donor Process
As a review, after a nearly 2 year delay in processing 2013 tax returns, in January CRA began assessing taxpayers with benefit of their donations, including addition of a significant amount of interest.
In early summer, CRA began Re-assessing those taxpayers denying the donations.
As always, the process has been to submit a Notice of Objection which maintains ones appeal rights AND (normally) causing CRA to put on hold any collection activities of the amount under dispute. CRA confirmed receipt of ones NOO with instructions that an appeals officer would contact them.
However, because Parliament changed the laws beginning in 2013, CRA has the ability to collect 1/2 of amounts under dispute related to tax shelter participation plus the amount of interest CRA paid on that half. Recently taxpayers in this situation have seen the 1/2 plus interest appear on their Statement of Account as a reinstated amount.
It is expected that in the near future CRA will begin collection activities on the reinstated amount which normally begins with demand letters and can escalate into more aggressive tactics.
There are no further appeal possibilities to stop collection of the amount but if there are successful Tax Court actions in the future, presumably, taxpayers would be entitled to refund of the reinstated amount.
There is no further assistance Global SaveTax can offer on these reinstated amounts.