BC Gov News

Statement from finance minister Michael de Jong:

“The changes B.C. made this summer are intended to address a number of the issues raised in today’s story on real estate by the Globe and Mail.

Offshore buyers—whether individuals or corporations—that are named on the property title would be subject to the 15% additional PTT, and the general avoidance rules that support the tax will help ensure the tax cannot be avoided. Further, property transfer tax forms now require Social Insurance Numbers as evidence of Canadian citizenship or formal permanent residency, which will help CRA enforcement efforts.

“Canada’s finance ministers discussed concerns about tax auditing and potential money laundering in real estate at their June meeting in Vancouver. Provincial officials have also discussed B.C.’s ongoing concerns through the federal‐provincial‐municipal working group on housing affordability.

“British Columbia’s real estate and financial regulators are also interested in the allegations raised in the story.

“The Canada Revenue Agency is the primary body responsible for auditing compliance with the income tax act. We understand the CRA has been taking further steps to identify and pursue cases of tax evasion. We support these efforts, and we share information under the agreement we have in place with the federal government.

“Like all taxpayers, I am concerned about allegations that some are not paying their share of taxes. For Canadians to have confidence in the tax system, the CRA must diligently enforce the law. I have and will continue to communicate this expectation to Finance Minister Morneau and the federal government."