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Canadian Humanitarian Trust/ Relief Lending Group

The taxpayer takes out a loan (for example of $10,000), and pays all of the interest up front on the loan at a fixed rate of interest, (for example 5% per year for 5 years which is $2500). The catch is this loan isnít in the form of cash. The loan is a credit that allows the taxpayer to purchase medical supplies similar to the AIDS medication in the example above. The taxpayer then donates these medical supplies to a charity of their choice, which in reality consists only of one or two choices. This charity issues a donation tax receipt for the fair market value of the medication donated. When it comes time to pay back the loan, the participant acquires the same or similar medication from a different supplier (often in Russia) always at a far, far lower price than was originally paid 5 years prior. These medical supplies are then used to replace the medical supplies originally borrowed effectively paying back the loan. It makes no sense whatsoever that the loan can somehow be paid back with medical supplies purchased in a third world country for 1/100th of the value but somehow there is no quality control checks in place or international regulations which stop this medication at the border. What medical supply store would wait 5 years to have their products returned to them? Especially when you are looking at amounts in the billions of dollars. It is just ludicrous.

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