The Canada Revenue Agency (CRA) is to investigate reports that real estate speculators are manipulating loopholes in the property residence rules to evade taxes.
In a statement, Revenue Minister Diane Lebouthilier said: “Like all Canadians, I am very concerned over allegations that some wealthy Canadians are not paying their fair share of taxes. That is unacceptable and I’ve since asked Canada Revenue Agency officials to look into the specifics of the case.”
Lebouthilier’s announcement follows a report by the Globe and Mail, in which it was claimed that “a network of speculators flips homes for a profit and evades taxes by classifying them as principal residences even though they never lived there.”
Michael de Jong, Finance Minister in the province of British Columbia – which recently introduced a 15 percent property transfer tax on offshore buyers – subsequently called on the CRA to “diligently enforce the law.”
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