Cases relating to donation tax shelters continue to pop up from time to time, and the hapless taxpayers are not having much success. The more recent cases generally focus on whether the taxpayers should be entitled to a tax credit for cash they “donated”. The courts have been unsympathetic. The courts have assessed the programs as a whole and concluded the taxpayers did not have donative intent. Rather, they intended to get back more in tax than the value of the property they gave up. Accordingly, they are not entitled to tax credits for any part of the property they transferred to the charities, including the cash. Walby v R, 2025 FCA 94, is a recent example. It addresses the Global Learning Gifting Initiative program. One of the individuals in the appeal had participated in the program in the 2005-2011 taxation years.
