Gifted Trust Arrangement

Also Known as: (Mass-Marketed Gifting Tax Shelters)

A Gifted Trust Arrangement is a tax shelter aimed to give you a large tax break by having you donate to a registered charity or charities. Typically created by tax planners, these planners have studied and found loop holes in CRA’s complex tax rules. The result of the Gifted Trust Arrangement is increasing your dontaions on your tax return, which can save a lot of money. The charitable donations received are often much larger than the actual amount paid to the donation. Canada Revenue Agency often audits suspects of these tax shelters, which can take over a year to complete this tax shelter audits.

Canada Revenue Agency is not fond of Gifted Trust Arrangements. According to CRA, in 2008, Canada Revenue Agency denied over $2.5 billion in tax sheltered gifted arrangement donations.

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