Kossow - Federal Court of Appeal confirms that a 3rd-party collateral benefit will vitiate a "gift"

V.A. Miller J's decision to strike down another leveraged charitable gift transaction has been affirmed.  The financing of 80% of the gifts in question with a non-interest-bearing loan with a term of 25 years was itself a sufficient collateral benefit for the "gifts" not to qualify as such for tax purposes.  Taxpayer's counsel unsuccessfully argued that McNamee v. McNamee, 2011 ONCA 533, established that a gift is only vitiated by the donor's receipt of a benefit if the donee (rather than a third party - here the lender) provided it.

Neal Armstrong.  Summary of Kossow v. The Queen, 2013 FCA 283 under s. 118.1(1) - "total charitable gifts."