Details on B.C.’s proposed to new 15 per cent tax on foreign home buyers

By The Canadian Press
July 25, 2016 - 5:47pm

VICTORIA — New legislation introduced by the British Columbia government intends to charge a 15 per cent additional tax on foreign entities buying residential property in Metro Vancouver. Here are some facts about the proposed law: 

Fighting Avoidance:

— All property transfer transactions will be subject to audits and all property transfer tax returns will be reviewed and verified.

— The audit period is six years from the day a property is transferred.

— Failure to pay may result in a fine of up to $100,000 for individuals and $200,000 for corporations, or up to two years in prison.
 

FURTHER READING: B.C. to bring in a 15 per cent additional real estate tax on foreign buyers
 

____

Defining foreign entities:

— Classified as foreign nationals, foreign corporations or taxable trustees.

— Foreign nationals are transferees who are not Canadian citizens or permanent residents.

— Foreign corporations are not incorporated in Canada, but controlled by a foreign national or other foreign corporation.

____

Application of the tax:

— Tax is in addition to the property transfer tax already in place of one per cent below $200,000, two per cent between $200,000 and $2 million, and three per cent on the remainder of a purchase.

— Does not apply to non-residential property.

— Does not apply to Tsawwassen First Nation lands.

— Applies to any foreign entities proportion of the share even if the transfer is between relatives, is a result of an amalgamation or if it’s moved to a surviving joint tenant.

— Applies Aug. 2, regardless of when the contract of purchase and sale was entered into.

Victims of Surrey shooting not the intended targets