The BC NDP government is taking further steps to close loopholes that allow real estate buyers and speculators to evade taxes.
In a press release on Wednesday morning, the Ministry of Finance announced that property buyers and speculators will have to disclose additional information while purchasing real estate through a corporation or trust.
The move is a part of the Province’s 30-Point plan to increase housing affordability, and will require property buyers to provide personal details, like their name, date of birth, citizenship information, and Social Insurance Number, while making the purchase.
This new rule will take effect starting September 17th, 2018, allowing the government to identify people purchasing property and ensuring that they pay the right amount of tax.
“Our government has been clear that the days of skirting tax laws and hiding property ownership behind numbered companies and trusts are over. Not only is tax evasion in real estate fundamentally unfair, but it’s driving up the cost of housing for people who live and work in our communities,” said Carole James, Minister of Finance.
“These changes give authorities another tool to make sure people are paying the taxes they owe.”
Last month, BC established a publicly accessible registry of people who own property in the province. The purpose of having it in place is to provide tax auditors and law enforcement agencies with enough information to be able to combat foreign and domestic tax evasion.