Parents at Christian schools across the country could suddenly face bills for back taxes and a hike in school fees after the Canada Revenue Agency ruled that a charity-run program that helps students attend independent religious schools is “merely a tax scheme” designed to mask tuition payments as grants.
The federal tax agency said in a letter this month donations to the Christian Economic Assistance Foundation made in 2009 and 2010 would be denied because they do not qualify as “gifts” under the Income Tax Act.
