I'm speaking primarily for the United States and Canada, where this myth seems to be most prevalent in my experience. I am not confident enough about other places' laws to speak on them. However, many countries have similar rules regarding tax deductible charitable donations.

And unless taxes work wildly different in other countries, the part about it not being of any benefit is still true. They'd have to not claim it as income, and claim it as a tax deductible donation for there to be any net benefit, and that's just plain fraud which anyone can do.