This proposed class action is brought on behalf of the approximately 60,000 Canadian taxpayers who participated in the Global Learning Group Inc. (GLGI) charitable donation program (the Program) between 2004-2014, but excludes those who sold the Program or were otherwise involved in its operations.
From 2004-2014, GLGI operated a charitable tax program called the Global Learning Giving Initiative. Canadian taxpayers made donations through the Program – including cash and software donations – on the understanding that the donations would support underserved communities and entitle the taxpayers to valuable charitable tax credits.
Beginning in about 2007, the Canada Revenue Agency began reassessing the participants’ tax returns, disallowing the tax credits claimed and charging interest and penalties.
In 2015, the Tax Court of Canada found that the Program was a “sham” perpetrated by GLGI. The software licence valuations that were used to support the charitable receipts were wrong and GLGI and its accomplices received approximately 90% of the cash donations intended for charities. The trust structure of the Program was also found to be invalid.
This proposed class action is brought against GLGI and its related entities, together with the legal and accounting professionals who supported the Program. The plaintiffs have commenced a class action to seek return of the cash paid into the Program and to recover damages for the interest and penalties assessed.