Be Careful With "Donate Low; Claim High" Scams

Spring 2011 CSANews Issue 78  |  Posted date : May 06, 2011.Back to list

 collections of artwork, books and other cultural artefacts - may be donated to an eligible charity in return for a donation tax credit. The property must be assessed at fair market value by a qualified and experienced appraiser; the charity then issues a tax receipt for that fair market value. Be cautious, however; over the past several years, a proliferation of "donate low; claim high" scams has  caused Canada Revenue Agency to examine such donations with intense scrutiny. Expect extra attention from the taxman if you choose to donate in this way!