How Does The Program Work?
The Warranty Program is available for all of the participants who donated to the All Saints Greek Orthodox Church through the ICC or CLI Donation Programs for the years 2001, 2002 & 2003

This Warranty Program will help you eliminate the potential financial hardship that a successful fair market value challenge by CRA would cause you and your family.

This Warranty Program covers all the property which you donated to the All Saints Greek Orthodox Church through the ICC or CLI Donation Programs for the years 2001, 2002 & 2003

This program, if you participate in, will cover the amount that you might owe CRA if ICC loses in court.

** The only times that the Warranty will not cover all of your taxes owing is if:

  • You had done a spousal transfer. This is when you purchased and donated the goods and your spouse had paid the Capital Gains taxes or
  • If you had utilized Capital Losses to offset your Capital Gains to get a larger Tax Credit. (Please contact us and we can discuss this further)

Do I Have To Pay Any More Legal Fees?
No, once you are a participant of the Warranty Program, you will never have to pay any more legal fees. The lawyers will be paid in full before it goes to court. So instead of a "Defense Fund", the Warranty Program has already retained the services of the law firm.


What Will The Warranty Program Protect Me From?

What Amount could possibly be owed to CRA with a Losing Scenario?
The following is a projection of what we believe should be a worst case scenario, based on the last case that was adjudicated on.

(ALL TAX RATES AND TAX CREDITS ARE BASED ON ONTARIO'S HIGHEST TAX BRACKET OF 46.41%)

Purchase Price: $10,000.00    
Fair Market Value: $56,522.00    
Approximate Tax Credit: $26,231.00   (Based on 46.41%)
Less: Capital Gains Taxes Owing: $10,795.00   (56,522 - 10,000 = 46,522 * 50% = 23,261 * 46.41% = $10,795)
Equals Amount Owing to CRA: $10,795.00   + interest at 7%

The average case that goes to court takes about 7 years to get a final resolution. So if you add 7 years of interest at 7%, the final number could be: $16,200.00

The warranty will give you coverage for up to 4 times your tax liability. So in the above case you would have protection for up to $43,180.00 ($10,795.00 x 4).


How Much Is The Warranty?
The Warranty cost is 6% of the Fair Market Value (plus GST) which was donated.

The Warranty cost in the above scenario is: $3,594.80

*Except for Quebec for the donation year of 2003 - where the Warranty costs 3% of the Fair Market Value Donated (plus GST). As the warranty program will only cover the Federal Taxes Owing.

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