So maybe you participated in COIP in 2006 and the interest you paid on your loan has long since expired and you are technically in default. The same could be true for any of the other programs. So you now have a partial recourse loan that makes it ineligible to finance a valid donation. Now the CRA will come after you and even if you file a Notice of Objection, the CRA will eventually collect all the tax back, plus interest at 5% compounded daily from the date of your refund. The Notice of Objection simply puts collections on hold for awhile. You should never forget that.
But there is some good news. Section 248 (34) of the Income Tax Act allows for a partial recourse debt to revert to a full recourse debt for donation purposes if the principal is repaid. For donors who have just simply done nothing about their old tax/debt situation, this means it is not too late. You can still settle up and have the best chance possible to maintain your tax refund. And settling the debt can be done using the pharmaceuticals identified in the original donation, so the cost is a small fraction of the original debt. This , however, can only be done through an independent vendor,not through the original lender or their agent, Integrated RM Inc. PGC has endorsed the Justice Pharma program for this purpose.
It is worth mentioning that for the COIP 2006 program and RLG 2008, the term of the loan will be maturing in 2016 (eg: RLG loan was for an 8 year term). When the loan term matures, and the borrower has not settled the debt, it is very possible and actually expected that the lender will obtain a judgement against the borrower, which precludes proper settlement. So these two program/years merit special attention for quick independent settlement, if you have not already done so.
We invite you to come to one of our Free Seminars where we explain the whole situation and have specialists available to answer your questions. So please look below for the schedule and: