Galleria Internacional

A new ruling has tightened a well-used weakness in Canadian laws. Those who are “residents of Canada for tax purposes” may not be at all. Those at fault are now paying the price.

3.Notary Public Tony Liu Failed To Do Due Diligence

Galleria Internacional

He failed in determining that the Vancouver house his client was buying for $5.5 million was actually owned by a tax resident of Canada. The buyer was then assessed the $600,000 in capital gains. He, in turn, sued Liu. The result was that The Canada Revenue Agency (CRA) did not get the 25% capital gains tax that it charges non-resident sellers on any profit made from the sale.

2.Who Makes Up A Foreign Investor?

Galleria Internacional

The CRA considers foreign property investors those that:

  • Do not live in the country at least 6 months a year
  • Do not pay income tax

These residency rules are seldom enforced according to Canadian tax, immigration, and property-transfer law attorneys. That is, until now.

1.Real Estate Agents Beware

Galleria Internacional

Realtors now can get a visit from the taxman expecting payment for failing to make adequate inquiries as to who is an actual Canadian resident. It should be noted that citizenship is irrelevant. What matters is tax residency.

Related Posts
FEATURED MEMBER
Galleria International Realty | Fort Lauderdale's Premier Real Estate
Galleria InternacionalGalleria Internacional