Income Tax Credits Promoted to Participants in a Donation Program
Disallowed Resulting in Tens of Millions in Losses, Lawsuit Alleges
TORONTO AND WINDSOR, March 15 /CNW/ - A class action has been commenced
in the Ontario Superior Court of Justice on behalf of all persons who
participated in the Donation Program for Medical Science and Technology
(the "Program") offered by Trinity Capital Corporation in at least one
of the taxation years of 2001, 2002 or 2003. The Program was marketed
as a tax shelter that permitted participants to make leveraged
donations to charities.
The lawsuit alleges that donors who participated in the Program used
their own funds for a portion of the donation and were provided with
the option of financing for the balance. Official charitable donation
income tax receipts were provided to each donor for an amount that
included the financed portion of the donation. Subsequently, the Tax
Court of Canada disallowed the income tax credits claimed by the
donors. As a result, the donors lost tens of millions of dollars on
account of disallowed income tax credits and various other fees
collected by some of the defendants.
The plaintiff, who is represented by Sutts, Strosberg LLP and Groia &
Company Professional Corporation, alleges that the defendants were
negligent in designing, promoting, and operating the Program.
Sutts, Strosberg LLP has recovered more than $1.5 billion for its
clients as a result of its involvement on the leadership teams of many
of the most important class proceedings in Canadian history. Groia &
Company Professional Corporation is experienced in class actions and is
one of Canada's leading boutique law firms focused on litigation.
Please visit Sutts, Strosberg LLP's website (www.strosbergco.com), Groia & Company Professional Corporation's website (www.groiaco.com) and the Trinity Capital Corporation class action website (www.trinityclassaction.com) for more information the Trinity Capital Corporation class action.
SOURCE Sutts, Strosberg LLP Barristers
For further information:
Sutts, Strosberg LLP
519.561.6272 or 1.800.229.5323, ext. 8272