F.A.Q's

Q: Over the years, the charities that GLGI supports have received letters from various politicians, including the Prime Minister, acknowledging the support that these charities provide for members of the community as well as thanking their members, volunteers and donors. How can CRA state that these donations are of no value?

A:           CRA is a tax enforcement agency. Their primary mandate is to collect monies. It is not their function to determine whether or not the charities benefit Canadians.

Q:          Can any individual expect a Notice of Reassessment (NOR) regardless of the tax year?

A:           Yes.

Q:          When must the Notice of Objection be filed?

A:            The Notice of Objection must be completed and filed with the Canada Revenue Agency (CRA) within 90 days after the date of mailing of the Notice of Reassessment. It is the donor’s responsibility to file the Notice of Objection on time. (The date of your Reassessment appears on the top left hand corner on the first page of the Notice of Reassessment document.) We recommend that you send the Reassessment by registered mail to the Chief of Appeals at the Tax Service Centre. (This information appears on the top right hand corner of your Notice of Reassessment.) Make sure that you retain a copy for your records. Filing the Notice of Objection within the 90 days will normally postpone any Canada Revenue Agency collection on the amount disputed. One important exception is the CRA’s right of “set-off”; this means the CRA has the right to apply a tax refund owing to you against any taxes owing to the CRA. If this were to occur, please contact our office so that we may assist you.

Q:          I received a Notice of Reassessment (NOR) for my 2008 GLGI contribution. What should I do?

A:           The Canada Revenue Agency's (CRA) stated intention is to audit and challenge the tax structure of every gifting donation in Canada. When the Canada Revenue Agency issues a Notice of Reassessment, the donor must file a Notice of Objection within 90 days after the date of the Notice of Reassessment.

Q:          Do I need to file a separate Notice of Objection for each Notice of Reassessment received?

Q:          If I have made donations in 2008, carried forward part of the donation from 2008 to 2009 and the Canada Revenue Agency has reassessed my return for both years, what should I do?

A:           You need to file a separate Notice of Objection for each year. Please mail both copies in one envelope to the Canada Revenue Agency.

Q:          GLGI recommends that I send the Notice of Objection by registered mail to Canada Revenue Agency. Are there any other options?

A:           Registered mail is the preferred method to ensure that your Notice of Objection is received by the Canada Revenue Agency.

Q:          Where do I send the Notice of Objection (NOO’s)?

A:           Below are the tax centres for your province of residence as of December 31, 2010:

For the most up to date list, go to www.glgi.ca for further information.

Q:          What happens after I file my NOO (Notice of Objection)?

A:           Once the Notice of Objection is filed, the CRA will mail you a confirmation letter acknowledging that your Notice of Objection has been accepted. (Please note that you will receive this confirmation letter within 1 to 3 months.) Then, you will receive a blue coloured “Statement of Account” letter indicating that your current balance owing is $0 (not including the amount under appeal). Once you receive the “Statement of Account” letter, the CRA should not be contacting you.

The Notice of Objection will be assigned to an Appeals Office at one of the CRA’s Tax Offices. They will likely be held in abeyance (on hold) pending the outcome of the test/representative cases in Vancouver of the seventeen GLGI donors that have filed Notices of Appeal to the Tax Court of Canada. The donors are being represented by one of the world’s largest law firms, Baker McKenzie.

Q:          Why does GLGI strongly recommend that I pay the reassessed amount?

A:           GLGI's legal advisors have requested that they be as conservative as possible in their recommendations. Considering the seriousness of CRA’s allegations, it would be irresponsible of them to suggest otherwise. It is reasonable to expect that it will be several years before a final court decision is obtained or a voluntary settlement is reached with the CRA. However, in the event the CRA is in the end successful in disallowing your donation, non-deductible interest continues to grow on the Reassessment.

It is important to note that paying the Reassessment is a donor’s individual choice based on their own particular financial circumstances. GLGI and their consulting advisors are confident that the program has been designed and operated in full compliance with the Income Tax Act of Canada. Ultimately, a Tax Court judge may make the final ruling as to the appropriate interpretation of the Act as it relates to GLGI's tax structure.

Q:          When will the case go to Tax Court?

A:           The entire process could take up to 5 years before the final outcome is decided. In the meantime, GLGI will continue to provide you with updates as they become available.

Q:          How does Global Learning Trust (2004) help worthy charities?

A:           Global Learning Trust (2004) provides approved beneficiaries the opportunity to receive educational courseware from the Trust and to donate this courseware to a charity. The approved beneficiary assumes no financial obligation in receiving the courseware. The courseware is distributed free of debt or liens and there is no binding obligation for the beneficiary to donate the courseware.

Q:          CRA suspended iCAN’s ability to issue donation receipts in late 2007 and early 2008 and withdrew their charitable status. What effect does this have on GLGI’s case and my donation?

A:           The suspension of iCAN does not have an effect on GLGI and the donor’s ability to continue participating in the program.

It is unfortunate for the charity and the individuals they served that they were targeted by CRA based on unsubstantiated claims that their records were not in order for the 2004/2005 tax years. This has no relevance to the donations that you made in good faith to a charity that was in good standing at the time of your donations.

Q:           What property will be distributed by Global Learning Trust (2004)?

A:            The property consists of educational courseware to be used as training material for adults and adolescents. The courseware includes software programs such as Microsoft® Word 2000, Microsoft® Excel, Microsoft® Access and Microsoft® Publisher. An abbreviated list is available at www.glgi.ca. For a full listing of programs being offered, please provide a written request to GLGI at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Q:           How long does it take to receive my charitable receipts?

A:            Your donation receipts will be issued and mailed approximately 6 to 8 weeks after your donation has been received by the participating charities.

Q:           How can I qualify as a beneficiary of Global Learning Trust (2004)?

A:            Applicants must complete and forward an application to the Trustee to be considered for approval to become a beneficiary of the Trust. To qualify, the applicant:

1. must be a Canadian resident for Canadian tax purposes and have a Social Insurance Number
2. must demonstrate support for registered Canadian charities either this year or last year by submitting copies of donation receipts or other evidence of charitable giving. Approval of an individual as a beneficiary of Global Learning Trust (2004) is at the sole discretion of the Trustee of the Trust.

Q:           Is there a limit to a beneficiary’s participation?

A:            If approved, there is no limit to the amount of your participation. Please indicate on your application your desired level of participation. The amount of educational courseware distributed by the Trust is at the sole discretion of the Trustee.

Q:           Must I donate the property distributed to me from Global Learning Trust (2004)?

A:           You have no obligation to donate any of the property you receive from Global Learning Trust (2004). If you choose to keep the courseware, you must advise GLGI. GLGI will then make arrangements to ship it to you. Shipping and handling charges along with applicable sales taxes (based upon the value on import into Canada) will apply.

Q:          Do I need to arrange the import and delivery of the property to the participating charities?

A:           No. The charities will arrange for the donated educational courseware to be imported from the courseware developer (in the U.S.) at their own expense. The value of the imported educational courseware will be determined by Customs upon its entry to Canada.

Q:          What will the charities do with the courseware it receives?

A:           The participating charities use the educational courseware to train those who need help acquiring the skills needed to survive and thrive in our technological world. In addition, the courseware is made available to other charities across Canada to assist them in their computer-based learning programs.

Q:          Can I donate my property to ANY charity?

A:           Yes. Global Learning Group Inc. asks that you seriously consider donating the educational courseware to our participating charities. All the charities that take part in the GLGI program have a track record of enhancing the lives of those less fortunate by providing them with training materials and high quality computer training facilities.

Q:          How can a beneficiary receive property from Global Learning Trust (2004) without cost?

A:           For tax purposes, your “adjusted cost base” of the educational courseware acquired will be equal to the “fair market value” at the time of donation. A legal tax opinion from a major Canadian law firm supports this.

Q:          If a taxpayer is reassessed and subsequently passes away, what is the estate’s responsibility and liability?

A:           The estate steps into the shoes of the deceased and receives the individual’s assets and liabilities. The estate would be responsible for any Reassessment.

Q:          If the taxpayer pays under protest and subsequently passes away, can the estate be settled without resolution, and then later on claim back the tax and interest owed by CRA after the case is settled?

A:           Paying the amount noted in the Reassessment is not an admission of guilt or liability. The Notice of Objection is the document that tells the CRA that the donor objects to the Reassessment. If the donor paid the Reassessment, subsequently passed away and the GLGI test case wins in court, the CRA would issue a refund to the estate. The executors would then distribute the refund in accordance with the will.

Q:          If the taxpayer dies before the Reassessment and the estate is settled, does CRA have the right to challenge the settled estate for the tax they claim is owed?

A:           Yes. The CRA can reassess the estate and the beneficiaries because the deceased’s tax liability goes to the estate and then to the beneficiaries. The Tax Act says the executors are personally liable if they distribute assets without a clearance certificate that all taxes have been paid.

Q: What is the maximum amount that the estate of a deceased individual can donate?

A:            The maximum amount that the deceased can donate is 100% of their net income in the year of their death. The donation must be made by December 31^st of that year. If the individual died on December 31^st, the executor is the only individual who can make the donation. The executor of the deceased may claim donations made during their lifetime and bequests it in the will. Bequests not listed in the will are not allowed to be claimed on the deceased’s income tax return however, they may be deducted by the estate on the estate’s return.

The executor can deduct the donation amount under the following scenarios:

• If the deceased made a donation to GLGI in the year that they were still living.
• If the deceased’s will states that the individual wants to make a donation to GLGI.

This is a complicated matter and should be referred to a tax accountant or a financial consultant for further advice.

Q:          How do I report my donations on my tax return?

A:            Your donation receipts (both cash and gift-in-kind) qualify for tax credits and should be claimed in the current year’s tax return. You will also receive the following:

• T5003 “Statement of Tax Shelter Information” slip must be filed along with your income tax return to support your donation credit claimed on Schedule 9.
• A cash donation receipt should be reported on Line 1 of Schedule 9 “Donations and Gifts” of your income tax return.
• The total donation claimed on Schedule 9 is then adjusted to be your donation credit amount, which then flows to Line 349 of your federal income tax return and to the related line on your provincial income tax return.
• You must also fill out Form T5004 “Claim for Tax Shelter Loss or Deduction”. This form is used by the CRA to identify all deductions and tax credits claimed in your tax return.

1. Write the Tax Shelter name and number (as shown on the T5003).
2. Write the date of your donation amount (gift-in-kind receipt)
3. Write the amount of deduction you claimed in your 2010 income tax return

(i.e. donation credit amount from line 349 )

We highly recommend that you consult with a tax accountant or financial consultant to assist you.

Q:          What happens if the CRA chooses to reassess this program?

A:           CRA has a 3 year window to reassess this program before they are statute-barred from doing so. If the CRA chooses to reassess, GLGI will take the appropriate steps to coordinate a vigorous defense of the program in the Tax Court of Canada. A representative case would be chosen from the reassessed clients and the entire program would be tried based on that one case. GLGI has established a defense fund in excess of $1,000,000, an amount considered adequate to defend the program (to the Supreme Court if necessary) should a challenge arise.