Oct 25, 2017
By Michael Kramer
Finance ministers from Ontario and B.C. say they’re receptive to the idea of a registry of pre-construction condominium sales.
This comes as the Canada Revenue Agency ramps up efforts to find tax evaders – who earn money flipping condos that are still being constructed.
Ontario Finance Minister Charles Sousa says the government wants the CRA to enforce disclosure of so-called “assignment sales” or “shadow flipping” – where someone buys a condo from a developer – and sells it to another buyer before it is completed – to prevent tax avoidance of any capital gains.
Sousa’s B.C. counterpart, Carole James, says the province has made some changes to allow for better sharing of information with the federal government – and is looking into ways it can help Ottawa in investigations and audits.
The CRA said Tuesday that it’s analyzing 2,810 transactions of pre-construction condo flipping in Toronto – and may carry out audits to find tax evaders – as real estate deals in the hot housing markets of Toronto and Vancouver come under greater scrutiny.