Class Actions

Global Learning Group Inc. Class Action —

This proposed class action is brought on behalf of the approximately 60,000 Canadian taxpayers who suffered damages as a result of their participation in the GLGI charitable donation program between 2004-2014.

Case Overview

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.

For more information on this class action please complete our confidential online form and a member of our team at Waddell Phillips PC will respond to you, typically within 1-2 business days.

Case Overview

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.

For more information on this class action please complete our confidential online form and a member of our team at Waddell Phillips PC will respond to you, typically within 1-2 business days.

The Statement of Claim for this action was issued on September 28, 2017.

The application to appoint a receiver over GLGI and the Trust company was denied on November 14, 2017.

The Plaintiffs have served their Amended Statement of Claim and will be scheduling the motion for certification as a class proceeding at a case conference scheduled for June 27, 2018.

An application for funding for this action was heard by the Class Proceedings Fund on March 21, 2018. The funding application was successful. The Class Proceedings Fund will provide some funding for the costs of disbursements incurred in prosecuting the case, and will provide an indemnity to the plaintiffs for any adverse cost awards made by the court. In exchange, the Fund will be entitled to receive 10% of the net proceeds of any judgment or settlement achieved for the class.

Recent email from “support@glgi.ca”

Some people may have received an email in mid-December 2017 with a link to a CRA letter. The CRA letter does not confirm CRA is issuing Notices of Confirmation for all outstanding GLGI objections. It is our understanding that the email was not sent by GLGI, which is no longer carrying on business. If you have received a letter from CRA, you should contact your financial advisor. We cannot provide you with advice regarding your individual dealings with CRA.

The proposed class is to include any person who participated in the GLGI program between 2004-2014, with some exclusions. The status of your dealings with CRA will not affect your qualification for participation in the proposed class action.

 

Further updates will be posted as this matter progresses.

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