What will be done to close foreign investor property tax loophole?
Posted October 8, 2015 2:18 pm.
Last Updated October 8, 2015 2:46 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – Will the federal Tories work to address a loophole in BC that’s saving some foreign investors a fair bit of cash?
We asked for one high profile Conservative’s response to the fact buyers are managing to avoid the property transfer tax.
The tax is under the provincial government’s jurisdiction — that is the first part of Ed Fast‘s answer.
“We’ve recently announced that we’re going to do a review of property prices in large, urban centres across Canada to make sure that we understand exactly what that entails and what the impact on Canadians and the availability of affordable housing is,” Fast says.
“And as we go forward, we expect that we’re going to review that very, very carefully, and if called upon, if required, we would respond to that,” he adds.
Corporations in our province that hold properties in trust can hand over shares to a new owner without there being a change in ownership.
So, the buyer is not charged the transfer tax.
The Globe and Mail reports, some foreign investors are buying properties and putting them in the names of corporations or family members.
BC Finance Minister Mike de Jong has said the provincial government will look at closing the loophole in its next budget.
