The Canada Revenue Agency has been tasked to probe rampant tax evasion in the country’s most active real estate markets, in the wake of a recent investigative report by The Globe and Mail
that recounted the tale of a Vancouver speculator who did not pay any taxes on millions of dollars’ worth of profits from a series of home flips.
“Like all Canadians, I am very concerned over allegations that some wealthy Canadians are not paying their fair share of taxes,” Minister of National Revenue Diane Lebouthillier noted in a statement, as quoted by CBC News
“That is unacceptable and I've since asked Canada Revenue Agency officials to look into the specifics of the case,” Lebouthillier said, adding that the CRA had completed 2,500 real estate audits in Ontario and British Columbia, which has led to around $11.6 million in fines to consumers who have committed “gross negligence in failing to report their tax obligations correctly.”
“Canadians expect and deserve a fair tax system and that is what we are committed to delivering.”
In a Tuesday (September 13) press conference, Prime Minister Justin Trudeau said that this is just one of the interventions that the federal government is contemplating to help cool down the country’s overheated housing markets.
“One of the issues that we highlighted recently is the need for continued enforcement of the tax code and making sure that we're cracking down on people who are avoiding paying their fair share of taxes,” the PM stated.
Trudeau added that he has allocated an extra $444 million for the CRA in this year’s budget to ensure “that there is better enforcement [so that] everyone pays their fair share of taxes.”
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