Fight Aids, Save Taxes

[jarrettvaughan]

Is anyone familiar with the "Fight Aids, Save Taxes" concept? Is this a legitimate tax shelter? It is being heavily pushed by Darren Weeks from Fast Track to Cash Flow and sounds to good to be true.


http://www.fightaidssavetaxes.com/


I apologize for the title error, should read Fight Aids, Save Taxes

 

[DonCampbell]

Hi Jarrett,

Good to see you are doing your due diligence before diving into something. It doesn`t really matter what it is, an investment, a property or a tax savings scheme... due diligence is the key.

Recently, when speaking with a CRA auditor, they mentioned that they are about to jump into a second round of auditing of tax savings schemes where those participating receive tax savings or receipts for more than they contribute. They`ve already audited over 26,000 Canadians and collected over $1Billion in in correct tax schemes (despite many of them having a tax opinion letter attached to the fund).

They said that the key is if a person receives a tax receipt for more than contributed cash. I don`t know the exact details of the one you are looking at, but if it has this type of strategy you may want to dig a little further and understand that the chances of an audit in the next 5 years is very high as they are all under red-flag watch. You can weigh the risks vs rewards by having a few more facts.

To assist you, I have attached an article that describes the process that CRA is going through. The 2nd paragraph of the article would be an important clue as well as a quick search of the CRA web site will also lead to some very interesting reading. For instance: http://www.cra-arc.gc.ca/newsroom/releases...nr070813-e.html

Trust this helps you in your due diligence (and the due diligence of anyone else trying to decide on a tax savings strategy)Here`s the article:

 

[timk519]

QUOTE (DonCampbell @ Oct 30 2007, 08:30 PM) ... the chances of an audit in the next 5 years is very high as they are all under red-flag watch.
From the article:

To protect Canadian taxpayers and maintain fairness in the tax system, CRA will audit every tax shelter gifting arrangement.

"very high" = 100% chance!

Here`s a link to another article that says the same thing - 100% audit of all gifting arrangements.

No thanks.

 

[bluerockgroup]

I`ve been to one of these presentations by C.O.I.P. and F.A.S.T. They have some rather convincing literature and I was tempted to give it a shot. Thankfully, just a few days later that Don presented the article above in a REIN meeting and I was able to keep `my nose clean.` There is a part of me that hopes the C.O.I.P. and F.A.S.T. systems help the world fight AIDS and that nobody gets financially hurt when these systems get put under the microscope of Revenue Canada.

Remember that Darren`s company `Fast Track to Cash Flow` is a marketing company so remember to look behind their curtain. There several products and services that they recommend to help you make it to the `Fast Track` (as per the Cashflow game) which may or may not work for you. Just be sure to dig deep enough to find the fundamentals...then dig deeper.

Just so nobody thinks that I`m completely REIN bias, I understand that Don, REIN, Cutting Edge Research and such are businesses that have profitable goals in mind as well. I have chosen to accept the items I`ve seen `behind their curtain` and feel that Don and company are an important and effective part of my team...as long as Don continues to open his komono when applicable.

Cheers,
Grant

 

[jarrettvaughan]

QUOTE (bluerockgroup @ Oct 31 2007, 04:03 PM) I`ve been to one of these presentations by C.O.I.P. and F.A.S.T. They have some rather convincing literature and I was tempted to give it a shot. Thankfully, just a few days later that Don presented the article above in a REIN meeting and I was able to keep `my nose clean.` There is a part of me that hopes the C.O.I.P. and F.A.S.T. systems help the world fight AIDS and that nobody gets financially hurt when these systems get put under the microscope of Revenue Canada.

Remember that Darren`s company `Fast Track to Cash Flow` is a marketing company so remember to look behind their curtain. There several products and services that they recommend to help you make it to the `Fast Track` (as per the Cashflow game) which may or may not work for you. Just be sure to dig deep enough to find the fundamentals...then dig deeper.

Just so nobody thinks that I`m completely REIN bias, I understand that Don, REIN, Cutting Edge Research and such are businesses that have profitable goals in mind as well. I have chosen to accept the items I`ve seen `behind their curtain` and feel that Don and company are an important and effective part of my team...as long as Don continues to open his komono when applicable.

Cheers,
Grant



This has all been very valuable advice. I do beleive that there are some motivations that may be hiding behind the curtain and i appreciate all the advise.

 

[joeiannuzzi]

Hi Jarrett. I am familiar with the program you have mentioned. Philanthropy is a very important component to add to life, however giving based on expecting something in return is not really philanthropy, is it? Why not find a charity that is near and dear to your heart and do whatever you can to help them achieve their goals without ever expecting anything in return. If the AIDS cause is important to you, the one thing you may wish to consider is to give a donation to the Canadian AIDS society directly (http://www.cdnaids.ca/). Alternately, you can build a real estate business and make a contribution utilizing the earnings of your corporation. In both cases, your tax savings won`t be as large as what this program claims, but neither will your potential to be audited by CCRA for fighting aids.

When it comes to time and money, time is far more important because it cannot be replaced. Your time needs to be spent buying more real estate and not potentially having to argue with CCRA about the rules they are making. It has been my experience that over 95% of the people who contribute do not do so for the mission statement in this venture, but rather the tax savings only which really isn`t giving out of the goodness of their heart because they expect to immediately reap some rewards for doing so.

 

[2HoundsHomeStaging]

I know of several people who bought in to scams like this. This year every single one of them are being auditted. They will be out the money they invested, any charges/fees incurred for the audit, back taxes owing...back audits and likely future audits.

If it sounds too good it is!

 

[grhutchings]

I have been using this exact strategy now for the last 2 years and do recommend it to people who understand that yes they may get audited. CRA will send you letters (Of course they will harrass you for just about anything). COIP is one of the few strong Tax Shelters out there. I am yet to be audited, however I know anyday now they will try and flex their muscle. CRA has up to 3 years to come back on you and if they dont, you are in the clear, if they do, they still have to prove and COIP has said they will be happy to fight CRA tooth and nail. This process will ultimately drag on and on. So worse case scenario, you get a great loan from the government for 7 or so years, you invest it (what could you do with $1 over a 5 - 7 year + period) and then if CRA wins, you pay back what you owe. You have made great returns on the governments money (no different then using the banks money or OPM). If you are the kind of person who wouldnt be able to sleep at night with CRA harrassing you then yes this isnt for you.

George Hutchings

 

[HeatherBrandt]

QUOTE (grhutchings @ Apr 23 2008, 12:56 PM) I have been using this exact strategy now for the last 2 years and do recommend it to people who understand that yes they may get audited. CRA will send you letters (Of course they will harrass you for just about anything). COIP is one of the few strong Tax Shelters out there. I am yet to be audited, however I know anyday now they will try and flex their muscle. CRA has up to 3 years to come back on you and if they dont, you are in the clear, if they do, they still have to prove and COIP has said they will be happy to fight CRA tooth and nail. This process will ultimately drag on and on. So worse case scenario, you get a great loan from the government for 7 or so years, you invest it (what could you do with $1 over a 5 - 7 year + period) and then if CRA wins, you pay back what you owe. You have made great returns on the governments money (no different then using the banks money or OPM). If you are the kind of person who wouldnt be able to sleep at night with CRA harrassing you then yes this isnt for you.

George Hutchings

George makes some good points. When one is calculating the risk/benefit ratio, make sure the interest rate charged by CRA is factored in. I believe it starts the day you receive your notice of reassessment. While they can`t force you to pay until there is a judgement, they will keep track of the compounding interest. One of the donation trust companies recommends paying the adjustment if you have the money, but not to borrow it if you don`t. This advice surprised me. For an interesting discussion about CRA and the power they have, check out "The Taxman is Watching" by Paul and Philippe DioGuardi. It`s an eye opener!

Heather Brandt

 

[navaz]

I see them disallowed all the time. If it is too good to be true it is! Revenue Canada is in the business of collecting taxes not giving them!

 

[UTCVenturesLtd]

I attended the last Fast Track workshop in Calgary and that was presented to the attendees. They said that it was legal and explained the steps that had to be taken in order for the system to work. They did say that at some point in the future, this system may not be allowed by Revenue Canada, but until such time they will use it. I guess it is up to Revenue Canada to decide whether or not to close the loophole.

 

[DonCampbell]

Here`s the latest info on this subject. See article attached - Vancouver Sun April 2008

 

[oligu]

We`ve participated COIP for tax year 2007 and tax year 2008. The amount we claimed for tax return is the same amount that we`ve paid, not the inflated amount COIP sent to us but the amount on the check we wrote. The decision was influenced by our accountant`s advice, the tax law which forbids the tax shelter inflated claim and the more important our christian belief "To give without being known". We`re turning to different worthy philanthropic causes. We do feel contribution to Mr. Campbell`s Habitat for Humanities/ Local church / disasterous relief and many other areas and focus building our financial ark throught real estate investing bring us joy, faith, and prosperity. Oliver / Mary

 

[LeighF]

I attended the Fast Track seminar in Fort McMurray. What turned me off about the "Fight Aids Save Taxes" pitch,was that it was totally out of place for the contents of the seminar.
This was suppose to be a seminar teaching you how to invest in properties, not save taxes by fighting aids. I think it should have been presented in a totally different forum.
Also, while I`m putting my two cents in....I thought Darren Weeks was a bit obnoxious for my liking and a little bit too arrogant for his own shoes.
Only my thoughts.....

 

[Rob01]

QUOTE (grhutchings @ Apr 23 2008, 11:56 AM) I have been using this exact strategy now for the last 2 years and do recommend it to people who understand that yes they may get audited. CRA will send you letters (Of course they will harrass you for just about anything). COIP is one of the few strong Tax Shelters out there. I am yet to be audited, however I know anyday now they will try and flex their muscle. CRA has up to 3 years to come back on you and if they dont, you are in the clear, if they do, they still have to prove and COIP has said they will be happy to fight CRA tooth and nail. This process will ultimately drag on and on. So worse case scenario, you get a great loan from the government for 7 or so years, you invest it (what could you do with $1 over a 5 - 7 year + period) and then if CRA wins, you pay back what you owe. You have made great returns on the governments money (no different then using the banks money or OPM). If you are the kind of person who wouldnt be able to sleep at night with CRA harrassing you then yes this isnt for you.

George Hutchings

George, there`s a few things you need to be aware of:

First, CCRA can go back alot further than just 3 years. ESPECIALLY if they`re classifying it as fraud.

Second, re: a great loan from the government. Well, CCRA has sent out some pretty punitive tax adjustments - an example: You invested $10,000 and got a tax refund for say $15,000. CCRA is disallowing the deduction, you owe the original $15,000 - plus imposing a PENALTY of $15,000 - yup, you heard right. In layman`s terms, they`re calling it a "stupid" penalty - you SHOULD have known better than to buy this diatribe.

As others have mentioned, it`s not a matter of "if" you get audited, you WILL. And you WILL get the huge penalties associated with it.

 

[Icecubes]

QUOTE (grhutchings @ Apr 23 2008, 12:56 PM) I have been using this exact strategy now for the last 2 years and do recommend it to people who understand that yes they may get audited. CRA will send you letters (Of course they will harrass you for just about anything). COIP is one of the few strong Tax Shelters out there. I am yet to be audited, however I know anyday now they will try and flex their muscle. CRA has up to 3 years to come back on you and if they dont, you are in the clear, if they do, they still have to prove and COIP has said they will be happy to fight CRA tooth and nail. This process will ultimately drag on and on. So worse case scenario, you get a great loan from the government for 7 or so years, you invest it (what could you do with $1 over a 5 - 7 year + period) and then if CRA wins, you pay back what you owe. You have made great returns on the governments money (no different then using the banks money or OPM). If you are the kind of person who wouldnt be able to sleep at night with CRA harrassing you then yes this isnt for you.

George Hutchings


So George,

I`m wondering if your strategy is still working for you? My husband has just received a notice of reassessment in regards to this particular scam "Fight Aids, Save Taxes" and now has to pay back all of the money he originally saved, has been denied even the original amount he donated and is being charged interest from the date that his return was due (2 years ago), NOT the date of reassessment. So he has lost several thousand dollars to the Fight Aids, Save Taxes organization, has not received ANY tax benefit from it whatsoever, AND did not have an `interest free` loan with the government for the period of time before he was reassessed. Also, if you look online you can see that the Fight Aids, Save Taxes organization is advertising positions for sales reps, paying between $100,000 and $300,000 per year. Where are they getting all of this money to pay such ridiculously high wages to sales people? From the poor suckers who fall for their scam. I doubt that they even donate any of the money to fight aids. Darren Weeks is a liar and a thief and it`s sad that he continues to pull the wool over thousands of uneducated people`s eyes every single year.

 

[Icecubes]

QUOTE (Turtleford63 @ Apr 24 2008, 11:07 PM) I attended the Fast Track seminar in Fort McMurray. What turned me off about the "Fight Aids Save Taxes" pitch,was that it was totally out of place for the contents of the seminar.
This was suppose to be a seminar teaching you how to invest in properties, not save taxes by fighting aids. I think it should have been presented in a totally different forum.
Also, while I`m putting my two cents in....I thought Darren Weeks was a bit obnoxious for my liking and a little bit too arrogant for his own shoes.
Only my thoughts.....


I`m so glad to hear that someone else out there agrees with my own thoughts on Darren Weeks!

 

[Ryan64]

QUOTE (Icecubes @ Apr 21 2010, 11:17 AM) So George,

I`m wondering if your strategy is still working for you? My husband has just received a notice of reassessment in regards to this particular scam "Fight Aids, Save Taxes" and now has to pay back all of the money he originally saved, has been denied even the original amount he donated and is being charged interest from the date that his return was due (2 years ago), NOT the date of reassessment. So he has lost several thousand dollars to the Fight Aids, Save Taxes organization, has not received ANY tax benefit from it whatsoever, AND did not have an `interest free` loan with the government for the period of time before he was reassessed. Also, if you look online you can see that the Fight Aids, Save Taxes organization is advertising positions for sales reps, paying between $100,000 and $300,000 per year. Where are they getting all of this money to pay such ridiculously high wages to sales people? From the poor suckers who fall for their scam. I doubt that they even donate any of the money to fight aids. Darren Weeks is a liar and a thief and it`s sad that he continues to pull the wool over thousands of uneducated people`s eyes every single year.

Hi Icecubes,

I am quite confused on why you think you have to pay back the reassessment amount. The CRA may ask for it back, doesn`t mean they have any legal right of any kind to collect it. People get reassessed all the time regarding tax filings. Most people don`t understand how the CRA works, nor what actual authority they have. A reassessment from the CRA is more like an opinion. In the opinion of the CRA you owe them this much. Doesn`t mean they have any legal right to collect it from you.

The only person who has the legal right to collect anything from you, is a Judge. You simply have to follow the Income Tax Act and it is quite easy to fight the CRA. With the reassessment you should of submitted a denial form to the CRA within 30 days. This would simply tell them you deny their claim. From there it goes to appeals, which you can deny again if it is not in your favour. From there it has to go to a Tax Judge. Regardless, the CRA cannot audit you, they can only audit the tax shelter as a whole.

I am sad to hear the CRA scare tactics worked on your family, and you lost all the money. The CRA does not have authority to collect that from you. My Grandpa worked in the CRA for many years, which is where I get most my information.

Most people don`t realize that Tax Shelters ARE LEGAL. They are written IN THE TAX ACT. The key is finding a Tax Shelter that is compliant with the Income Tax Act. From the research I`ve done, Fight Aids Save Taxes works through Mission Life. Mission life Tax Shelters appears to be 100% compliant with the income tax act.

Also those who are concerned about interest charges and penalties, go look up old court cases with Public Tax Shelters. The CRA can only charge interest on a "reasonable amount of time", says it right inside the Income Tax Act. So people who think they are going to get back charged interest for 5 years, are just plain wrong. In most cases that make it before a Tax Judge, there are no interest or penalties ever chargesd

From reading these forums, I can see what my Grandpa means by saying "The CRA has the best scare tactics, and can usually scare people out of their rights".

If anyone has questions, I can try and answer them, or send them to my Grandpa who worked for the CRA until he retired.

 

[moparcanuck]

QUOTE (monalisa21 @ Nov 29 2010, 05:58 PM) Tax fraud....if you are able to prove this is tax fraud (if the program is non compliant in your opinion) you should contact MissionLife. They will give you 10,000 to prove it. Apparently they`ve had 40 some people try unsuccessfully. I ask you, if tax shelters are defined in the Income Tax Act of Canada (as are RRSPs and other tax strategies) and one follows all the rules that are written in black and white..how is that fraud?
Mitigating circumstances can allow Revenue Canada to go back as far as they wish. When fraud is involved, yes. But what is fraudulent about a charitable gift. Where 100% of medical units donated arrive to the intended targets.
for everybody in this post, make sure what you read is backed by fact. Not emotion or thoughts. We have a rule book (ITA) that has printed in black and white the rules a tax shelter we must follow. Look it up, find out how the program works and check the list! Then make a decision.

This is a bit older, but check out this link:

http://www.canadiancapitalist.com/beware-o...n-arrangements/

 

[bizaro86]

QUOTE (monalisa21 @ Nov 29 2010, 05:58 PM) Tax fraud....if you are able to prove this is tax fraud (if the program is non compliant in your opinion) you should contact MissionLife. They will give you 10,000 to prove it. Apparently they`ve had 40 some people try unsuccessfully. I ask you, if tax shelters are defined in the Income Tax Act of Canada (as are RRSPs and other tax strategies) and one follows all the rules that are written in black and white..how is that fraud?
Mitigating circumstances can allow Revenue Canada to go back as far as they wish. When fraud is involved, yes. But what is fraudulent about a charitable gift. Where 100% of medical units donated arrive to the intended targets.
for everybody in this post, make sure what you read is backed by fact. Not emotion or thoughts. We have a rule book (ITA) that has printed in black and white the rules a tax shelter we must follow. Look it up, find out how the program works and check the list! Then make a decision.

I suspect you`ll have less credibility here after joining, and immediately posting a defense of a company involved in a giving tax scheme. The CRA is pretty specific that you can only get a receipt for the amount you`re giving in $$, and can`t write it up to the "retail" or other "value" of the item being donated.

Do you have any affiliation with MissionLife? If so, you should have disclosed it.

Michael