BEFORE JC. Government takes action to crack down on tax evasion in real estate

Aiming for tax evasion in real estate, BC The government has announced new rules requiring that property buyers disclose more information when they make a purchase through the property. 39, an intermediary of a corporation or trust.

Beginning September 17, 2018, purchasers will be required to report the following additional information on their property transfer tax return.

• Name
• Date of Birth
• Information on Citizenship
• Address
• Tax Identification Numbers (as in Social Insurance Number)

"These changes give the following information: Authorities another tool to make sure that people pay taxes they owe, "said Finance Minister Carole James.

Depending on the province, these changes are part of their 30-point plan for housing affordability.

"Our government has been clear that the days of bypbading tax laws and hiding property behind numbered companies and trusts are over." Living and working in our communities, "said James.

All Types properties, including residential and commercial properties, will be affected by the new reporting requirements.

Exemptions will be in place for certain trusts, including charitable trusts, and corporations such as hospitals, schools and businesses. Libraries.

Changes are "timid," says BC Green Party

Although the government says that additional information from corporations and trusts ensures that the correct amount of tax is paid, BC The Party Leader Green, Andrew Weaver, says the plan is too timid

"This is not a question of tax evasion, contrary to what says the press release because it allows the government to collect data. He says that the NDP government must demand that the property transfer tax be applied to the beneficial owner of the property, not just to the owner of the land title.

to close the bare loophole of the trust that allows people to buy property in a trust, to have own shares of that company, and then sell the shares of that company and transfer effective ownership of the property without changing the title, to avoid paying property transfer tax.

"If you talk to people in the developing world, it is well known that it's the way to avoid the property transfer tax, especially for speculators, and particularly the speculators at sea. It's a well-known avoidance measure. "" They did not close that flaw … they left it open, but now that's it. " transparent, and it's almost as if you were doing half-steps in dealing with what the government said frankly to do centuries ago, and it still has not done. "[19659002] The Government says it is taking action on a number of other issues to counter tax evasion and close property loopholes, including pbading legislation to track pre-sale badignments and giving more powers to property tax auditors to fight against tax evasion.

With CBC files On the Coast