CONTACT
RSS

 

There are two recently announced items relating to real estate in British Columbia that I hope you will give careful consideration to.  Firstly, the anonymous tip line operated by the Real Estate Council of BC; secondly the Speculation and Foreign Buyers Tax. I would like to provide the following comments regarding each of these items.

 

Anonymous Tip Line

While it is reasonable that an individual wishing to make a complaint about a Licensee may remain anonymous to that Licensee, it is important that the person making the complaint be required to provide their name and contact information to the Tip Line. The reasons for this are twofold. 1. The facts leading up to the complaint may need further examination after the Licensee has been approached and 2. The nature of anonymous online comments and reviews highlights the inaccuracy and often outrageous claims people can be prone to make under the cloak of anonymity, or when they are simply ill informed.

 

Speculation and Foreign Buyers Tax

The implied message is that wealthy speculators hoping for capital gains are scooping BC real estate at the expense of BC residents in need of affordable housing.

 

Apparently there is evidence of wealthy people from other countries buying expensive real estate in Vancouver for speculation and perhaps money laundering. That is a separate issue that I am not concerning myself with here. 

 

My concern is the relatively small number of Canadians wanting to buy retirement homes in BC. When considering the weather alone in most of Canada, it is no wonder that people hope to retire to BC and perhaps spend part of the year here. These people are often the self-employed (farmers, small business people, restaurant workers, etc) who have no pensions to look forward to. They put their savings into homes in Victoria, Kelowna, (and the exempted Salt Spring Island) with the intention of moving here when they can afford to retire. People coming from other provinces for the occasional weekend may not pay income tax in BC, but they support local restaurants, entertainment venues and shops. For the most part, they are not competing for the type of housing we need. The government rules regarding mortgage qualification have made it harder for families of moderate means to buy a house. The working poor, the unemployed and the people with mental and physical challenges that preclude them working are not going to be buying homes – they are the ones the subsidized housing will help.

 

Please do not impose a further tax for BC residents and Canadians from other provinces who, like most of us, are simply trying to get by.

 

Sincerely,

 

 

 

 

Helen Jones

Read

Speculation Tax Update

The British Columbia government recently announced a “Speculation Tax” effective for the 2018 tax year. Details on the Speculation Tax have been limited especially given the magnitude and scope of the new tax. Below is some information released to date along with a link to the most recent Ministry of Finance Information Sheet:
So far the B.C. Government has advised the following:
   
Speculation Tax:

1.     The Speculation Tax will target foreign and domestic speculators in BC. 

2.     Exemptions will be available for:
a.     Principal residences (excluding satellite families – households with high worldwide income that pay little income tax in BC )
b.     Qualifying long-term rental properties (no specific definitions of long term rental provided)
c.      Certain special cases
3.      A non-refundable income tax credit will help offset the tax for BC residents. This will leave the bulk of the tax levied on vacant and short-term rental properties owned by individuals who do not live in BC, as well as satellite families.
4.     In 2018, the tax rate will be 0.5% of assessed value. In 2019, the rate will increase to 2% of assessed value.
5.     The Speculation Tax will initially apply to the Metro Vancouver, Fraser Valley, Capital and Nanaimo Regional Districts, and in the municipalities of Kelowna and West Kelowna.
At this time the following concerns and practice points have not been addressed:
1.    No grandfathering announced for existing owners or buyers currently under a contract of purchase and sale.   
2.  No announcement whether this tax can form a lien or is otherwise attached to the Speculator’s property (including after the Speculator’s property is sold in which case a Non-Speculator Buyer may be liable for a Speculator Seller’s tax liability).
3.  No announcement on how the Speculation Tax is to be prorated when a Speculator Seller has paid the tax for the year and the property is then sold to a Non-Speculator Buyer. 
4.  No announcement on any Seller or Government certificates that may protect a Buyer from tax liability when purchasing from a Speculator Seller or a Seller that the government may later deem to be a Speculator.
5.  No announcement on suggested changes to the Contract of Purchase and Sale that may be required to deal with liability to both buyers and sellers due to the proposed tax (including a Non-Speculator Buyer that may be liable for tax liability from a Seller that is later deemed to be
Many Realtors have commented that there appears to be a new landscape where government passes sweeping legislative changes often times on short notice, without grandfathering, without consultation with industry and with significant penalties (for example penalties of double the tax, interest on the tax, a fine up to $250,000 and up to two years in prison for Realtors providing certain advice or preparing certain documents under the Property Transfer Tax Act). Given this constantly changing landscape, we appreciate that you and your clients may wish to work with a law firm that is well-versed in these matters and Mullin DeMeo is proud to continue to assist you and your clients in this regard. If you have any questions on the above or any other real estate related matter, please do not hesitate to contact our office at any time.
Read

We are professionals and we advise our other real estate colleagues to please remember that counseling a party to avoid taxes is participation in tax avoidance under the Act! Your marketing, social media and other communications all "count". 

From the Property Transfer Tax Office:

Tax Avoidance, Penalties and Offences

All property transfer transactions are subject to audit and all additional property transfer tax returns will be reviewed and verified. The audit period is six years from the date the transfer is registered with the Land Title Office.

Anti-avoidance provisions exist and will be enforced to ensure all property purchasers report and pay the correct amount of property transfer tax and/or the additional property transfer tax, including examining circumstances where Canadians, as taxable trustees, hold property in trust for a foreign entity or are trustees where a beneficiary may be a foreign entity.

Failure to pay the tax as required or purposely completing the property transfer tax return or the additional property transfer tax return with incorrect or misleading information may result in a penalty. These penalties may include double the tax, tax plus interest, a fine of $200,000 for corporations or $100,000 for individuals and/or up to two years in prison.
The penalties apply to anyone who participates in tax avoidance.
Read
Categories:   1029 view st | 1061 Fort St | 1188 Yates | 128 Amphion Terrace | 2018 | 2018 MLS Statistics Victoria | 2020 | 2021 | 2022 | 2417 Beacon Avenue | 3010 washington Ave | 439 cook st | 515 Chatham | 751 fairfield rd | 760 johnson st | 881 short st | 881 uptown | 930 yates | abstract | abstract development | accountant | acreage | Activity Book | affordable homes | agreement of purchase | air bnb | Apartment | approach seller direction | April statistics | astoria | august 2022 | bare trustee | bc | BC Energy | bc home assessed value | BC Housing | bc landlords | BC Real Estate Council | BC Real Estate Foundation | BC Real Estate Rules | bc speculation tax | bc tax rules | bc title | bcrea | Bear Mountain | Belmont | beneficial interest | best realtor | bosa development | british columbia | british columbia real estate | building warranty | Buy | buy a condo in cedar hill | Buy Apartment | Buy Apartment Victoria BC | Buy Condo | Buy Condo Victoria | Buy Condo Victoria BC | Buy Home | Buy Home Victoria BC | Buy House Victoria BC | Buy In Victoria BC | Buy Property | buy real estate in Rockland victoria bc | buyer | buyers | buyers tax | Buying | Buying Home | Buying A ForeClosed Home | Buying A House | Buying A House With Cash | Buying An Investment Property | Buying Property | Buying Rental Property | Buying Your First Home | BuyingProperty | canada | canada home search | Canadian Housing Market | cannabis rules | capital park | cedar hill | central saanich | central saanich waterfront | Century | Century 21 Houses For Sale | Century 21e | character home | City of Saanich | clause to remove junk | close to uvic | CMHC | Co Hatley Park, Colwood Real Estate | coast hotel | concert properties | condo | condo clear | condo downtown | condo for sale | condo project | Condos For Sale | consumer protection | cordova bay | Corona Virus | corporations | Costs House | Costs Of Buying A House | Covid-19 | covid19 | cra | Craigslist Houses | Craigslist Houses For Sale | CS Brentwood Bay, Central Saanich Real Estate | CS Saanichton, Central Saanich Real Estate | customs house | david foster | deceased on title | december | detached Homes | development opportunity | disclosure forms | dockland real estate victoria | downtown | downtown victoria | downtown victoria condo | downtown victoria condos | Downtown Victria | Du West Duncan, Duncan Real Estate | elevate | empty home tax | Es Rockheights, Esquimalt Real Estate | Es Saxe Point, Esquimalt Real Estate | esquimalt | esquimalt home | estate planning | evergreen hill | fairfield condo | fairfield rd | fantastic app | farm | farm land | father | father's day | february real estate statictics | fifteen 88 | fifteen88 | find a home in victoria | find a home victoria bc | find home find | First | First Home | First Time Home Buyer | fisherman's warf | fixed mortgage | for sale by owner | for sale by owner victoria | For Sale In | For Sale On | For Sale Victoria BC | ForeClosed | ForeClosed Home | foreign b | foreign buyer tax | foreign buyer tax in british Columbia | foreign buyers | garden suite | go agent | gst | guidelines | hacks | hamlet park | harbourside | home | Home Buyer | home for sale | Home Partnership Program | Home Prices | home renovations | home search criteria | home warranty | Homes | Homes Sale | homes for sale | homes for sale in victoria bc | homes for sale under $400000 | House | House Buy And Sell | House For Sale In | House Sold | House Victoria BC | House With Cash | houses | Houses For Sale | Houses For Sale On | Houses To Buy In Victoria BC | housing market | hudson one | hudson place | hudson place one | hudson presale | Ilaria | income splitting | Investment Property | January | Jawl | jawl properties | joint tenancy | july statistics | june 15 | June 2018 | june 2020 | june 2022 | junk removal | Kijiji Homes | Kijiji Homes For Sale | kitma rd | La Bear Mountain, Langford Real Estate | La Florence Lake, Langford Real Estate | La Glen Lake, Langford Real Estate | La Happy Valley, Langford Real Estate | La Westhills, Langford Real Estate | Ladysmith | landlord | lanford | langford | lefreve | legal | legato | luxury | luxury condo | luxury condo inner harbour | luxury home | luxury real estate | luxury tax | luxury waterfront | manhattan | March | march statistics | marigold | Market | market on yates | Market Value | May | May 2020 real estate | may 2021 real estate | may statistics | me | misrepresentation | ML Mill Bay, Malahat & Area Real Estate | MLS | MLS 2018 August | mls app | mls statistics | mortgage | mosaic | Multi Family Properties | Multi Family Properties For Sale | Na North Nanaimo, Nanaimo Real Estate | nanaimo | near | new bc budget 2018 | New Condos | New Condos For Sale Victoria BC | new foreign entity tax | New Homes | New Homes For Sale Victoria BC | New Houses | New Houses For Sale Victoria BC | New realtor | new tax rules | newsletter october | newsletter september | non-resident | north dairy rd | Norway House Buy And Sell | november | NS Dean Park, North Saanich Real Estate | NS Lands End, North Saanich Real Estate | OB South Oak Bay, Oak Bay Real Estate | ocean view | october | october 2022 | Offer | Old Houses | Old Houses For Sale | openhouse | outbreak | Pandemic | parking | parkside | parkside hotel | parkside presale | polo village | Possession Dates | Pre-sale | pre-sale home | preconstruction | presale | presale condo | price | Properties | Properties For Sale | property | property guys | property transfer tax | purchase agreement | Purple Bricks | Purple Bricks Homes For Sale | real estate | real estate app | real estate estat | real estate estatistics | Real Estate Foundation BC | real estate news | real estate purchase | real estate rule changes | Real Estate Sold | real estate statistics | real estate tax | Real Estate Victori | real estate victoria | realtor | Realtor Houses For Sale | realtor tipline | realtor.ca | realtors | Remax | Remax Land | Remax Land For Sale | Rental | Rental Property | resale downtown victoria condo | residenes | residential property | resources | rockland real estate victoria | roundhouse rise | saanich garden suite | Sale | Sale Victoria BC | save money | saxe point | school | scrap speculation tax | SE Cedar Hill, Saanich East Real Estate | SE Cordova Bay, Saanich East Real Estate | SE Maplewood, Saanich East Real Estate | SE Mt Doug, Saanich East Real Estate | SE Mt Tolmie, Saanich East Real Estate | SE Swan Lake, Saanich East Real Estate | search for homes on MLS | second property | selkirk waterway | Sell My House | Sell My House Fast For Market Value | sell your home in victoria | seller | sellers | Sellers Market | selling | september | september real estate news | sidney | Sidney condo | sidney condo project victoria | Sk East Sooke, Sooke Real Estate | Sk John Muir, Sooke Real Estate | Sold | Sold Homes | Sold properties | specul | specula | speculation | speculation ta | speculation tax | speculation tax for foreigners in British Columbia | Statistical Updates | statistics | Step One Code | Steps To Buying A House | storage | strata | strata insurance | strata tips | stress test | subdivision | SW Marigold, Saanich West Real Estate | SW Northridge, Saanich West Real Estate | SW Portage Inlet, Saanich West Real Estate | SW Royal Oak, Saanich West Real Estate | SW Strawberry Vale, Saanich West Real Estate | SW Tillicum, Saanich West Real Estate | Tax | tax avoidance penalties property transfer tax | tax changes | tax changes in bc | tax fraud | tax penalties | Tax rukes | tax rules | tax splitting | telephone scam | Tenancy | tenancy laws | tenanted properties | tenants | the aragon | the haro | the jukebox | the juliet | the manhattan | the manhattan 930 yates | the nest | the railyards | thetis Glen | thetisglen | timeshare | tips | tips on virtual open house | title insurance | Top Realtor | Top Realtor Victoria BC | townhouse | Townhouses | Townhouses Victoria BC | Townhouses For Sale Victoria BC | Tresah | Troke | trust agreements | Trusts | two lots | ubc | under 600 000 | vacation home | vancouver | variable mortgage | Vi Burnside, Victoria Real Estate | Vi Downtown, Victoria Real Estate | Vi Fairfield West, Victoria Real Estate | Vi Fernwood, Victoria Real Estate | Vi James Bay, Victoria Real Estate | Vi Jubilee, Victoria Real Estate | Vi Mayfair, Victoria Real Estate | Vi Rockland, Victoria Real Estate | vic west new condo project | victora | victoria | Victoria August 2018 MLS Statistics | victoria bc | victoria bc canada | victoria bc home find | Victoria BC Home Prices | victoria condo | victoria condo market 2019 | victoria Day parade | victoria homes | victoria housing bubble | victoria inner harbour | victoria luxury condo | Victoria New Condos For Sale | victoria pre sale | victoria property | victoria property searc | victoria property search | victoria real estate | victoria real estate board | Victoria Real estate statistics | victoria speculation tax | Victoria Top Realtor | victoria townhouse | victoria waterfront | victoria waterfront condo | Victoria Waterfront Properties | vip | virtual open house | VR Prior Lake, View Royal Real Estate | VR Six Mile, View Royal Real Estate | VR View Royal, View Royal Real Estate | VREB | VW Songhees, Victoria West Real Estate | VW Victoria West, Victoria West Real Estate | water view | waterfront | waterfront condo | waterfront property | waterview | wharf street | what is happening with BC speculation tax | yates
Categories
MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.