Canada closes loop­holes to cool hous­ing mar­ket

The Myanmar Times - - Business -

CANADA has an­nounced rules to fight real es­tate spec­u­la­tion by for­eign­ers blamed for driv­ing up hous­ing prices in two of its largest cities.

The gov­ern­ment is amend­ing the tax code to “close tax loop­holes and im­prove tax com­pli­ance” with re­gard to an ex­emp­tion from a cap­i­tal gains tax, Finance Min­is­ter Bill Morneau told a press con­fer­ence.

The move means for­eign in­vestors – just like Cana­di­ans – will have to pay a 50 per­cent tax on prof­its from the sale of a home in Canada un­less they ac­tu­ally lived in it and de­clared it to be their pri­mary res­i­dence.

Un­til now, many for­eign buy­ers man­aged to get around this tax.

The mea­sure is among a se­ries of new mort­gage and tax rules un­veiled by the Lib­eral gov­ern­ment and its Tory pre­de­ces­sor in re­cent years in an ef­fort to cool hot hous­ing mar­kets in the cities of Toronto and Van­cou­ver. –

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