Province’s property owners must provide more information as of September 17
Certain taxpayers in British Columbia will be required to report additional information on their property transfer tax returns starting September 17, 2018. This requirement, which is part of British Columbia's new real estate speculation tax changes the province announced in its 2018 provincial budget, is intended to help identify individuals that have a significant interest in a corporation or trust that acquires certain property. Although the updated property transfer tax return is not yet available, the government says an online version will be available before the effective date.
Background - B.C. land speculation tax
British Columbia's 2018 provincial budget introduced new measures intended to target foreign and domestic home owners of certain residential real estate in the province who do not pay income tax in British Columbia. Specifically, British Columbia announced that it would enact a speculation tax on certain residential property as well as new measures to enhance tax administration and information sharing, including measures to introduce the collection of additional information about beneficial ownership on the Property Transfer Tax form. British Columbia released a new white paper that includes draft legislation to enhance tax administration and information sharing in July 2018.
For details, see TaxNewsFlash-Canada 2018-05, "Highlights of the 2018 British Columbia Budget", and TaxNewsFlash-Canada 2018-08, "New B.C. Real Estate Rules". British Columbia later announced new exceptions from the annual speculation tax (see TaxNewsFlash-Canada 2018-24, "B.C. Narrows New Real Estate Taxes").
New reporting requirements
Certain types of trustees and corporations that acquire property will be required to identify all individuals with a significant interest in the corporation or trust on the property transfer tax return. British Columbia says that the new reporting requirements apply to all property types, including residential and commercial. Certain corporations and trusts will be exempt from these requirements, such as charitable trusts, hospitals, schools and libraries.
For each individual identified, the following information must be included on the return:
British Columbia notes that, as with other information collected on the return, the data will be treated as confidential.
Although British Columbia has not yet released an updated property transfer tax return, it has indicated that it will be available online before the September 17, 2018 effective date.
For more information, contact your KPMG adviser.
Information is current to July 31, 2018. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500