Revenue Canada probes tax loopholes in real estate speculation

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The Canada Interest Agency is looking deeper into tax evasion in some of the country’s hottest casing markets after reports suggesting many speculators are abusing the methodology and not ying enough tax on their gains.

The move comes after a Earth and Mail report last week on a Vancouver property speculator who y out virtually no tax on gains from millions of dollars worth of home spins during the same calendar year.

«Like all Canadians, I am very solicitous over allegations that some wealthy Canadians are not ying their clear share of taxes,» Diane Lebouthillier, minister of national revenue, claimed in a statement. «That is unacceptable and I’ve since asked Canada Revenue Means officials to look into the specifics of the case.»

Frothy market

Remote money in Canada’s housing market has been a hot topic of late, as policymakers request to get rid of some of the excess speculation without starting a nic. The province recently fulfiled a 15 per cent tax on foreign buyers in the Greater Vancouver Area, and the spring of the capital gains exemption on a primary residence has also drawn probing from the tax man and other agencies.

Lebouthillier says that between April of carry on year and June 2016, the CRA has conducted 2,500 audits related to physical estate in British Columbia and Ontario, and levied some $11.6 million in incarcerations to tax filers who were subsequently found to have demonstrated «gross carelessness in failing to report their tax obligations correctly.»

«Those trying to keep away from ying their tax obligations now face an increasing likelihood of getting comprehended,» she said. «Canadians expect and deserve a fair tax system and that is what we are pledged to delivering.»

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