B.C. government tackles condo flipping with new database regulations
To crack down on tax evasion, the B.C. government has launched a new registry requiring developers to report on presale condo and strata lot contracts.
Starting Jan. 1, 2019, developers selling strata units before a building is completed will be required to report information on the online Condo and Strata Assignment Integrity Register that the B.C. government will share with the Canada Revenue Agency.
Minister of Finance Carole James said in a statement Monday that this will close the “loopholes” that have allowed real-estate speculators and tax frauds to exist in B.C. because there is no method for tracking whether sellers are paying taxes on their capital gains. According to the ministry, tax evasion on presales makes sales more profitable and pushes home prices up. With a registry, the transactions can be traced back to the seller’s income tax return to identify whether or not they reported the gains.
“The days of avoiding taxes are over,” said James.
More on the new regulations at thestar.com/vancouver