CRA finds huge amount of unpaid taxes in real estate sectors of B.C. and Ontario
Nearly $600 million in unpaid taxes in Ontario and British Columbia’s real estate sectorhas been found by ‘The Canada Revenue Agency’ in past three years.
Ontario has $423 million in unpaid taxes which are related to real estate transactions and income tax and, B.C. has around $169 million. The federal agency began examining real estate transactions from 2015 and still in the process.
A CRA official said a number of factors increase the risk of tax evasion in the country’s two hottest real estate markets, including a questionable source of funds to buy properties, property flipping, unreported GST, unreported capital gains and unreported worldwide income.
In Ontario, 90 per cent of the unpaid taxes were related to homebuyers not paying the GST. GST is required on all newly built homes and other real estate transactions in Canada.