Charity tax dodge entangles parish

[Ian David]

star investigation: Thousands of donors audited after firm issues $273M in bogus receipts in church's name

Kevin Donovan
Staff reporter

A small Greek Orthodox church in Toronto has been hijacked by a fundraising company that used the church's good name to issue $273 million in apparently phoney charitable tax receipts over the past five years.

It's part of a dubious tax shelter scheme cooked up by a Concord, Ont., company that promised to spread relief to the world. Some medical supplies, comics and crayons were distributed, but nothing on the scale that $273 million would buy.

"We were absolutely stunned when we found out about this," said Bill Arvanitis, a long-standing member of All Saints Greek Orthodox Church near Bayview Ave. and Finch Ave. E. Arvanitis is part of a new board of directors that recently took office. "Our little parish is struggling to meet its needs. I can tell you we did not receive $273 million in donations."

Federal officials estimate the scheme may have deprived government coffers of more than $100 million in unpaid taxes. The Canada Revenue Agency has begun tax audits on almost 3,000 donors to the "All Saints Giving Trust" – the tax shelter created by the fundraiser.

More:
http://www.thestar.com/News/article/208325