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That's the problem. This was recently pointed out by the Globe and Mail investigation into real estate tax evasion in Vancouver. Many people are claiming a pro
by hackerboos 10y ago
That's the problem. This was recently pointed out by the Globe and Mail investigation into real estate tax evasion in Vancouver.
Many people are claiming a property as their main residence whilst not staying in said property for more than a few weeks a year (main residence for these people is abroad).
The unpopular solution would be to charge capital gains on all property, irrespective of being your primary residence.
That would certainly cool a speculative market but I doubt such a measure would be supported by Canadians.
- crdb 10y ago> real estate tax evasion in Vancouver If your problem is tax evasion, the solution is enforcement. If it is a big problem, it will pay for itself when solved.
- Kadin 10y agoCalling it "tax evasion" is probably incorrect, since foreign owners are exploiting the rules in a way that is technically correct, but not anticipated. The solution is first to fix the rules, and then, of course, to enforce them. Obviously the long-term solution is to assume that people will always exploit any tax law as aggressively as they can, and that there's a basically-unlimited supply of people looking to park money in low-tax jurisdictions if they are allowed to do so. I don't think this was necessarily widely appreciated when many jurisdictions' tax laws were written.
- hackerboos 10y agoNo it is evasion. CRA have launched an investigation. http://www.theglobeandmail.com/news/politics/cra-launches-review-of-bc-real-estate-speculators/article31847258/ http://www.theglobeandmail.com/news/politics/cra-launches-re...