B.C. gov­ern­ment tack­les condo flip­ping with new database reg­u­la­tions

StarMetro Vancouver - - NEWS - JENNY PENG

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

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