Justice Pharma Newsletter
April, 2014 

What Happened?

Although many still may not be aware of exactly the contractual arrangements  they entered into, tax shelter participants ("Donors") must understand that they actually purchased pharmaceuticals on credit that were then donated. 

There were four stages to the original tax shelter transactions:
  • Loan to buy pharmaceuticals
  • Purchase of pharmaceuticals
  • Donation of pharmaceuticals
  • Filing of taxes and donation receipts to the Canada Revenue Agency ("CRA"), after which a tax credit or tax refund was given. 
Now, two problems are outstanding:
  • The CRA is reassessing Donors for a number of reasons, but mainly because some loans were not settled compliantly
  • Promoters are demanding that Donors pay additional interest and settle their loans, either with identical pharmaceuticals or money. 

By Donors for Donors

The Justice Pharma (Debt Settlement) Program™ (the “Program”) was created by Donors for Donors to find a legally compliant solution to the problems that Donors now face.

The Program is able to contractually and legally procure compliant “identical pharmaceuticals” that are World Health Organization (“WHO”) and Good Manufacturing Practice (“GMP”) accredited at one-tenth of the price Donors originally contracted with the lenders. 

Why Choose the Program?

The Program provides specific, necessary and valuable legal support at no extra cost to all Justice Pharma participants. For example, the Program protects Donors against the abusive collection tactics that have recently begun and that have started bombarding Donors from earlier years. It is expected that latter year tax shelter Donors are the next targets of the collection campaign. By joining the Program for collective action, these Donors have the benefit of acting now to prevent losses-- but only if they act now. Time is of the essence, and the sooner Donors join the Program, the better their chances of mitigating their losses and emerging victorious.

The tax shelter promoters have specific shipping requirements, many of which are too financially and logistically burdensome for individual Donors to bear on their own. Furthermore, as these “requirements” were not specified in the original loan documents, the Program’s lawyers are using their expertise to ensure that these stipulations do not prejudice Donors, while at the same time complying with those requirements and challenging them when appropriate.

As the Program has developed the right infrastructure to meet these demands in a way that is effective and economical, Donors are given access to professional support that represents unbeatable value. The Program is the strongest and most cost-effective action available to tax shelter Donors due to its combination of shipping, analysis and necessary legal coverage, the cost of which is distributed evenly throughout the group. 

News, Developments and Advancements

The last few months have seen some exciting news, key developments and important advancements for the Program. Some highlights of these include:

Sad but true…
In a recent letter sent out to its Donors, Fast Track Tax Strategy ("FAST"), the largest promotional company that acted as Master Agent for the COIP and MLF tax shelters, knowingly made false claims and gave incorrect and unauthorized financial advice regarding Donors’ loan agreements, legal process and Tax Court.

Specifically, FAST incorrectly grouped Justice Trading Ltd (“Justice”) with the tax shelter promoters. In this letter, FAST gave financial and tax advice despite the fact that it is not legally permitted to do so. Somewhat confusingly for Donors that received this letter, the fine print of the correspondence actually disclaimed FAST’s ability to give such advice. 

In addition, FAST has made further incorrect statements and given instructions about its Donors' tax shelter debts and their legal rights and obligations. Namely, based on the original promotions, no further payments would ever have to be made in connection to the tax shelter debts. This is a false claim that is in direct contradiction to the loan agreements that Donors originally signed.

Furthermore, FAST clients and tax shelter Donors should be aware that Tax Court is unconnected to personal debts between the Donors and promoters; in fact, Tax Court will only hear cases that are brought before them by taxpayers who initiate a claim against the Minister of National Revenue. However, FAST has no mechanism to help any of its Donors deal with escalating legal proceedings for collection or to appeal to Tax Court.

Given that FAST has made incorrect statements and given faulty instructions, Donors are warned to exercise caution when considering the content of such letters. FAST’s unauthorized advice is in contravention of the original signed loan agreements, which are clearly being enforced. Its instructions are also in contravention of the many Notices of Objection that have been submitted.

Therefore, acting on the unauthorized advice of FAST may result in Donors’ breaching their original loan agreements and may lead to a loss of tax credits claimed with interest and penalties. By joining our Program, FAST Donors can receive the necessary assistance based on fact and law that offers protection instead of peril.

Second closing! 
On 31st March, Justice had its second closing (“Closing”) of 2014 for submission of documents and payments. This was possible due to the overwhelming response of COIP/RLG/MLF/PGI tax shelter participants across Canada. Donors are encouraged to act now to avoid negative consequences later on with promoters, lenders, collection companies and the CRA.

Joining the Program means that Donors are granted access to a particular class/sub-class through which collective legal access to defense and protection is enabled.  Consequently, Donors can be protected as a part of a class and benefit from the power of many to reduce their risks of vulnerability from collection companies, the CRA and by other abuses being perpetrated against them by various promoters. The Program has developed complex and robust risk management and emergency response systems, such as the independent Escrow account that aligns Donors’ interests with the Program, and insurance coverage of Donors’ pills. All of these measures afford Donors the best ways in which to deal with the many problems which they face, eliminating anxiety and reducing their legal, fiscal and financial exposure. 

Program is now the largest consolidated Donor group in Canada
The Program is the undisputed single largest mobilized group of Donors in Canada who are acting together to ensure the integrity of their tax credits. Through the Program Donors can exercise their individual and collective rights against the promoters and their affiliated companies.

We now have well over 1,000 Donors who have settled in excess of 2,000 tax shelter contracts. The number is growing rapidly as more and more Donors across Canada realize that the Program can ease their struggles, fight their battles and empower them as a part of the collective.

Legal Victories

Promoters forced to accept pharmaceuticals
After the promoters abandoned the first shipment of pharmaceuticals that was sent, we are very pleased to inform you that the efforts of the Program’s legal team have been successful!

Following our lawyers' perseverance, we have received confirmation that SunRX (COIP) will unconditionally accept the pharmaceuticals. We are now proceeding to make these initial deliveries.

By becoming a member of the Program, Donors will no longer have to independently face the ever-changing delivery requirements of the promoters. It begs the question why the promoters are resorting to such different strategies to cause our Donors so much delay and the Program so much cost. The reality is that the true cost of delivery in time, resources, money and stress is wholly prohibitive to any individual Donor. However, through the empowerment of the Program, no single Donor need ever face this task or those costs alone.

Justice gains control of JusticeTrading.ca
Additionally, our lawyers have successfully ensured the transfer of the JusticeTrading.ca website from our former distributor who used it to post incorrect, misleading and defamatory statements about the Program. Sadly, this confused many Donors. We will rectify this by reaching many more Donors in need of the Program’s solution through this newly acquired site.

Visit: www.JusticeTrading.ca (which automatically redirects to www.JusticePharma.org).

Non-Disclosure Agreements ("NDAs")
NDAs are being used to address the activities of some rogue promoters that seem extremely willing to hurt the Program and Donors for their own benefit and protection. This specific legal tool is a strong example of how the Program offers necessary extra help, at no extra cost, that removes the stressful burden from Donors and instead transforms this into combined strength for the benefit of the class.

Assistance with fighting collection companies
As a Program created by Donors and for Donors, the Program is able to offer letters for mailing to collection companies written by a leading Ontario-based law firm. In March 2014, an email was sent to all Program Donors regarding contact with a collection company that uses coercive tactics to dupe large numbers of Donors. This company misleads Donors into paying money that actually has the effect of making their loan agreements non-arm’s length and non-compliant according to Canadian tax law.

Our Program is committed to counteracting this bad advice by helping Donors understand that following the collection companies’ requests will result in loans being settled irresponsibly and not in compliance with Canadian tax law. Following the bad advice of collection companies may expose Donors to further tactics, such as claims for coupons for an amount of money equal to the face value of the coupons/credit certificates.

As a solution, our lawyers prepared individually tailored correspondence for Donors to address the collection letters sent to each Justice participant. This represents one of several new measures that we are implementing to protect the individual and the aggregate rights of Donors. Although there is no guarantee that the collection companies will stop asking Donors for money, they can be stopped if Donors join the Program's group and refuse to back down.

Moreover, our lawyers have requested that all further correspondence on the matters of collection be forwarded to the Program under our Limited Power of Attorney. This is a legal document that is part of each individual’s participation. It is a means to shield Donors from any stress in dealing with the lenders and their agents. This further raises our Program into a truly turnkey debt settlement solution and not merely a vendor of pills.

Social Media

Justice Pharma has increased its social media presence! Find us on TwitterFacebookYouTube. We would appreciate your “Re-Tweeting” us on Twitter and “Liking” us on Facebook! We also look forward to your comments and feedback to share with your fellow Program participants!

New Videos Released

As part of the Program’s online and multimedia efforts, we are pleased to share the details of a number of new videos explaining the Program and its benefits. .

The topics of the videos cover:

The Justice Pharma Debt Settlement Program
The Evolution of the Justice Pharma Debt Settlement Program
Why Doing Nothing is Bad Advice
Tax Shelter Schemes

These can all be found on the Justice Pharma Website and on YouTube

Mandamus and Profitable Giving Canada Authorization

Many people are still unaware that the Program has received the support and authorization of Profitable Giving Canada (“PGC”). PGC is the the only self-regulated organization (“SRO”) for Canada’s emerging Fourth Sector-- the field in which donation tax shelters/Registered Profitable Giving Arrangements (“RPGA”) are regulated. In addition, PGC has made an application to federal court for a Class Action Mandamus order. This technique has never been used in Canada and will make history if successful. Assuming the application is successful, this will compel the CRA to issue 2012 tax assessments in favour of the RPGA Donors that are named within the application. The Program supports this initiative, especially as it concerns prospective purchasers who participated in 2012 and 2013 tax shelters.

Visit the PGC website here: www.ProfitableGiving.ca.

Canadian Friends of Pearl Children is Secondary Designated Recipient of Pharmaceuticals

Canadian Friends of Pearl Children (“CFPC”), the charity that has extensive experience assisting disadvantaged children and adults in Uganda, will be the Program’s secondary designated recipient. As the largest recipient of tax shelter pharmaceuticals in the last decade, CFPC will also accept the donation of the settlement pharmaceuticals as a secondary designated recipient and help save thousands of lives by donating and distributing the pills to various clinics across Uganda. Representatives of the Program accompanied CFPC earlier this year to meet the National Drug Authority of Uganda (“NDA”) as well as two key Ministers of Health and Commerce, who wholeheartedly are offering all their assistance in the delivery and acceptance of pharmaceuticals into their country.

Learn more about CFPC at: www.pearlchildren.ca
Read about the NDA here: www.nda.or.ug

Audits, Legal Opinions and Reports

The Program has passed a number of audits and has legal opinions in its favour, each demonstrating the Program’s compliance with contractual obligations. The audits, legal opinions and reports are proof that the Program provides goods and services that help Donors to comply with their loan agreements and settle their debts with the promoters in a way that is legal for tax purposes.

Justice Pharma has constant independent oversight from PGC, the SRO that oversees and regulates RPGAs.

Independent executive council of experts known as the JTeam
The Program is also overseen by an independent executive council of industry professionals, all of whom are Profitable Giving Specialists (“PGS”), accredited by PGC.

Legal opinions and reports
The Program also has legal opinions and delivery reports. We also conduct a yearly internal delivery report and "forensic" audits. These are all available and can be accessed by those who sign an NDA and participate in our Program.

Audit by a world-leading accounting firm 
A forthcoming audit is soon to be released by a world-leading auditing firm.  We are eagerly anticipating receipt of the written form of release which will demonstrate various professional compliance of the Program and the manufacturing plant that produces the pharmaceuticals.

More details of this huge achievement will follow in the next newsletter!

Don't settle for less! Settle with Justice