Canada Revenue Agency real estate audit penalties in B.C. reach $200,000 mark
Selling Canadian real property? Canada Revenue Agency is increasing audit focus on nonresidents selling Canadian real property. We can assist you.
Andersen Tax LLP partner Steven Flynn was quoted in a recent news article on the Q1 results of Canada Revenue Agency’s audit program designed to identify and penalize egregious instances of tax avoidance and evasion related to Greater Vancouver and Greater Toronto property sales.
Read the article: Potential cases of tax evasion in B.C. real estate rising
Flynn says that the implementation of the B.C. speculation and empty homes taxes is resulting in better data collection by the provincial government that ties homeowner information to tax returns. CRA is using the connections in their audit program, which covers three specific matters: unreported income (including capital gains), GST payments on new buildings and new home GST/HST rebates.
If you are concerned about what this means for your property sale, we invite you to get in touch for a consultation.