On August 4, 2025, the Tax Court of Canada made a big decision about a fake donation program that promised huge tax breaks to thousands of Canadians.
This was part of a long-running scheme called the Global Learning and Gifting Initiative (GLGI). The program tricked people into thinking they were making real donations, but in truth, their tax credits were not valid.
This article explains everything that happened recently, why the Malone family’s appeal was rejected, how the donation program worked, and what this means for other Canadians moving forward. We’ll also look at the judge’s latest warnings and how you can avoid scams like this in 2025.
Latest Court Decision as of August 2025
On August 4, 2025, Justice Randall Bocock from Ottawa confirmed the court’s decision to reject the appeal filed by Barry, Barbara, and Brandon Malone. They had tried to challenge the Canada Revenue Agency (CRA) after their tax breaks from past donations were denied.
The court said that even though the Malones believed they were helping others through charity, they did not show true donative intent. This is a legal term which means that you must donate with a genuine wish to help others—not to receive something bigger in return.
What Was the GLGI Scheme?
The Global Learning and Gifting Initiative (GLGI) was a complicated donation program that started many years ago and continued to cause problems into 2025. Here’s how it worked:
- Donors gave money to a connected charity like Millennium.
- They were then given rights to education software licenses.
- These software licenses were “donated” again to another charity.
- In return, the person got tax receipts for both the money and the “value” of the software.
- The software was often valued much higher than it was worth.
Because of this, many people claimed large tax deductions that they were not legally allowed to take.
What Happened to the Malone Family in 2025?
On August 4, 2025, the court officially rejected the Malones’ case. They had tried to claim tax credits from donations made in earlier years, but the judge made it clear:
“The Malones join the ranks of thousands of GLGI participants denied their inflated donation amounts.”
They now owe large amounts of tax and interest because their donation receipts were not accepted.
August 2025 Warnings from the Court
Justice Bocock gave serious warnings for all Canadians moving forward in 2025:
- Be careful of donation programs that sound too good to be true.
- If a tax shelter gives more back than you give in donations, it’s a red flag.
- Signing confusing papers like “Deed of Gift” or “Application and Waiver” can mean trouble.
- A tax shelter number doesn’t make a program safe—it might mean it’s under review.
This warning is important in 2025 because more people are donating online or through new platforms, and scammers are finding new ways to cheat the system.
CRA Action in 2025
The Canada Revenue Agency is increasing its focus on tax shelters and fake donation programs in August 2025. New audits and stricter rules are being applied to charities and individuals who try to use leveraged donation schemes.
If you gave money to a program like GLGI in the past and still think you’re eligible for a tax credit, 2025 is the year to double-check with an accountant or CRA directly.
What Canadians Should Do in 2025
Here are some important tips for anyone thinking about donating to a charity in 2025:
- Research the charity’s background.
- Make sure it is registered with the CRA.
- Ask how the donation will be used.
- Be careful of any charity that offers large tax benefits that seem bigger than your donation.
- Always get advice from a trusted accountant or financial advisor.
GLGI Case (Updated for August 2025)
| Topic | Details |
|---|---|
| Latest Court Decision Date | August 4, 2025 |
| Program Name | Global Learning and Gifting Initiative (GLGI) |
| Court’s Reason | No valid donative intent by donors |
| CRA Action | Denied tax credits and increased audits |
| Affected Canadians | 50,000–60,000 |
| Total Money Involved | Over $500 million |
| Court Warning (2025) | Avoid inflated donation tax shelters |
As of August 2025, the GLGI case is a huge warning for all Canadians: don’t fall for schemes that promise to give you more money back than you donate.
Thousands of people believed they were helping others, but ended up losing money and facing tax debts. The latest decision by the Tax Court of Canada makes it clear—donations must be real and not just a trick to lower your taxes.
If you’re thinking of giving to a charity in 2025, do your homework, stay safe, and make sure your generosity doesn’t come with a hidden cost.
FAQs
Is the GLGI program still running in 2025?
No, GLGI is no longer operating legally. In August 2025, the court confirmed that past donations through GLGI don’t qualify for tax credits.
How can I know if a charity is legit in 2025?
You can search for the charity’s name in the CRA’s official list of registered charities. Also, avoid charities that promise big tax savings.
What should I do if I already claimed GLGI tax credits in the past?
If you used GLGI in past years, consult with a tax expert. You may face a CRA review or need to pay back taxes and interest in 2025.