Charity begins at home. And sometimes ends in jail.
June 4, 2008 9:02 AM Subscribe
The Banyan Tree Foundation
posted by Shepherd (12 comments total)
promised to take donations from contributors to be redistributed to worthy Canadian recipients. The foundation also gave donors inflated charity receipts for tax declarations, and donors were encouraged to borrow money to contribute even more, and did... from a company now owned by Banyan Tree president Robert Thiessen. Now, the money has stopped flowing
, and the Canada Revenue Agency (CRA) has called the organization a "sham" and is going after Banyan donors for past charity receipts totalling more than CAD$100 million.
The charity is still listed as a charity
, which is provoking anger in the House of Commons. Many donors are participating in a class-action lawsuit
against the Foundation.
This type of donating, known as tax shelter donations
, has been the subject of previous precautions by tax authorities and charity law specialists
, and has caused problems for donors
in the past as well.