You're over-taxed and fed up with crooked politicians running off with your money.

You're not a prime minister who can fly foreign flags on steamships to avoid paying tax. Nor are you Canada's highest paid entrepreneur, who moved to an Austrian castle to shelter millions in income from taxes.

So, what do you do?

The reality is in Canada there are precious few places to hide, with the greedy taxman even going offshore to nab tax evaders.

So, when a smooth promoter comes along -- flogging a sweet tax shelter all in the name of the Lord and spreading his goodwill by helping society's underprivileged and disadvantaged -- you bite.

God certainly does help those who help themselves, when donating money to a charity yields a tax credit that can shelter up to 75% of your net income from the taxman.

What a miracle when you can donate $10,000, get a tax receipt for $30,000, and save more than $50,000 in taxes. Even better, the promoter promises, it's all backed by the Income Tax Act, plus numerous court rulings.

DONATIONS

And besides, if the taxman ever came after you, the charity has an iron-clad defence plan, or "the guarantee."

Too good to be true? You betcha.

These schemes involve everything from donating computers, furniture and art to comic books, crayons and trading cards. And while the schemes' architects (including an investment guru who had his wrists slapped by the Ontario Securities Commission) walk away with their pockets lined -- here comes the taxman to fleece yours.

"Linda, this is totally unfair. Canada Revenue Agency is trying to pull a fast one on a number of taxpayers who took advantage of a tax loophole," complained an investor who didn't want to be named.

She was spitting nails over a reassessment notice from CRA that had just arrived in the mail demanding she repay $15,000. And she only had 15 days to respond.

Why, one might ask, would a chartered accountant fall for such a scheme? She explained she invested $3,000 in a shelter involving vintage comic books, which she maintains have real worth since they are traded in an over-the-counter market throughout North America.

Even more persuasive was that this venture involved a church, whose endorsement of the tax shelter scheme read: "We believe that these comics which will not only bring countless hours of joy to the underprivileged and disadvantaged children who will receive these comics, but will also assist them in their education. We also believe that reading in an English medium will be used in various literacy programs of our parishes and missionaries."

What a powerful endorsement.

The investor also points out she invested in 2001 -- long before CRA clamped down on Dec. 5, 2003, with legislative changes limiting the tax benefits of charitable donations.

DONATION CLAIM

But the CRA notice was clear: Her total donation claim of $23,574 was reduced to $1,485.

And an attached fact sheet from CRA explained a complete audit of the charitable organization revealed the church was unable to substantiate it ever had title to a majority of the comic books involved. In other words, it appears very few disadvantaged children were actually benefitting from donated comic books. They never got them.

"We are auditing charitable donation schemes," said a CRA spokesperson, who points to a taxpayer alert on CRA's website, cra.gc.ca.

The alert warns: "Investors should be aware of the risks associated with participating in certain tax shelter donation arrangements, including gifting trust arrangements, leveraged cash donations, and buy-low, donate-high arrangements."

CRA recommends that before parking money in any of these schemes, investors get independent legal and tax advice.

My advice is always remember: If it's too good to be true, it ain't true.

And that's why, when approached by one of these charitable organizations to speak about the benefits of their donation tax shelter, I immediately responded: "No!"

The speaker's fee was $7,500. My comment was, "my reputation is worth more than $7,500. And so are my readers."

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HOW TO BE AN INFORMED DONOR

To avoid problems with the taxman, here's some advice:

- Gather as much research as you can about the charity.

- Ask for documentation, annual reports, budgets, and don't be fooled by slick presentations.

- Find out how much of the donation goes to charitable activity.

- Walk away from high-pressure promoters who want you to contribute immediately.

- Never give out personal information.

- Only charities registered under the Income Tax Act can issue official donation receipts.

- To verify if a charity is registered visit the Charities Directorate web page at cra.gc.ca, or call 1-888-892-5667.