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I love Canada - but our government has always been idiotic. The ban is against 'foreign investors'. But the thing is, Canada has a corporate designation called
by cik 4y ago
I love Canada - but our government has always been idiotic. The ban is against 'foreign investors'. But the thing is, Canada has a corporate designation called CCPC: Canadian Controlled Private Corporation. Directors of said corporation have to be > 50% resident Canadians.
A corporation can be created for the purchase of this property, with a Canadian controlling, and being the director. This will literally do nothing other than add about $300 to the cost of an existing transaction. Shareholders can pre-execute a sale of shares at the existing value - to be executed later. This is completely legal.
Canada would have to reform the various types of corporate entities. That's simply not going to happen.
- randomdata 4y agoTechnically the ban isn't on foreign home buyers, the ban is on foreign capital coming into Canada to buy homes. This indirection may make enforcement more difficult, but the intent won't be hard to figure out if one is caught.
- toss1 4y agoIf the CCPC has >50% resident Canadians as directors, how does that protect the buyer - what prevents the directors from deciding that the assets are to be used for their benefit instead of the foreign investor(s) funding the corp? Can the CPPC have different voting rights, or the ability to remove directors and undo prior actions? But yes, this does look like a loophole through which one could easily drive a building...
- dennis_jeeves1 4y ago>I love Canada - but our government has always been idiotic. No, the Canadian people are stupid, as are people elsewhere.