VANCOUVER—In Vancouver and Toronto’s hot real estate markets, property owners “try to trick the Canada Revenue Agency” all the time, but over the past two years Canada’s taxation authority has become more aggressive at rooting out tax evasion, says a tax and estate planner.
“People are in some cases lured by the prospect of making easy, quick money,” said Jamie Golombek, managing director of tax and estate planning at CIBC in Toronto. “The temptation is not to report or to inappropriately report.”
Vancouver Real Estate News, Market Updates, Insider Tips, Stats, & Analysis
The CRA recently reported it had identified nearly $600 million in unpaid taxes from the British Columbia and Ontario real estate sector from audits conducted over the past three years. The agency warned that there continues to be “compliance risks,” especially in Vancouver and Toronto.
The agency says transactions in the Greater Toronto Area have been under “greater scrutiny … for some years,” but has only recently “been actively monitoring and auditing real estate transactions in British Columbia.”