Property Transfer Tax Changes
A new Property Transfer Tax (PTT) Return will be introduced November 27, 2017, according to information released by the Ministry of Finance.
The Return form features significant changes from the prior version and can only be completed using Adobe Acrobat DC Standard or Professional. The new PTT Return form will be available from myLTSA and ltsa.ca, and should only be submitted as of November 27, 2017.
Reminder: Additional Property Transfer Tax
The Council recommends that licensees advise their clients to seek independent professional advice to determine if their trade in real estate will be subject to the Additional Property Transfer Tax.
A 15 per cent tax that foreign entities or taxable trustees pay in addition to the general property transfer tax on transfers of residential property in the Greater Vancouver Regional District, the Additional Property Transfer Tax has now been in effect for more than a year.
Property transfer tax transactions are subject to government audit, and Additional Property Transfer Tax Returns are reviewed and monitored for compliance by the Property Transfer Tax Office of the Ministry of Finance. There are anti-avoidance rules and penalties for individuals who fail to pay the tax or who participate in tax avoidance, including:
- paying the unpaid tax plus interest,
- fines of up to $100,000, and
- up to two years in prison.
Licensees who promote methods to help consumers avoid or defer payment of the Additional Property Transfer Tax could be subject to these penalties, as well as investigation and potential discipline by the Council. Whenever the Council becomes aware of any licensees who are advertising or advising clients about ways avoid the tax, we take immediate and appropriate action.