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Yakk · 09-09-2004, 11:46 AM

So, you give money to a charity. You get a tax reciept.
This charity then gives you something (drugs) in return for this money that is worth more than your gift.
You then give the thing the charity gives you to the WHO. You get a tax reciept.

The initial quid-pro-quo gift transaction doesn't look like gifts, it looks like a sale. You aren't giving a gift to charity, you are buying the drugs in practice. The gifts look like a thinly veiled legal fiction that CCRA won't be amused by if they look at it.

Alternatively, you just got a large gift from a charity. This is income -- all gifts are income with very few exceptions. You then give it away and get a tax write off. But, you give away nothing that you didn't earn: the tax effects will be negative or null, not positive.

I am not a tax lawyer. But there isn't any such thing as a free lunch. We have a purchase hiding as a donation and/or a big chunk of undeclaried income.

Edit: Text in italics.

09-09-2004, 11:46 AM	#14 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	So, you give money to a charity. You get a tax reciept. This charity then gives you something (drugs) in return for this money that is worth more than your gift. You then give the thing the charity gives you to the WHO. You get a tax reciept. The initial quid-pro-quo gift transaction doesn't look like gifts, it looks like a sale. You aren't giving a gift to charity, you are buying the drugs in practice. The gifts look like a thinly veiled legal fiction that CCRA won't be amused by if they look at it. Alternatively, you just got a large gift from a charity. This is income -- all gifts are income with very few exceptions. You then give it away and get a tax write off. But, you give away nothing that you didn't earn: the tax effects will be negative or null, not positive. I am not a tax lawyer. But there isn't any such thing as a free lunch. We have a purchase hiding as a donation and/or a big chunk of undeclaried income. Edit: Text in italics. __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.