The CRA regularly monitors tax compliance in real estate transactions.
Source: Government of Canada
The CRA regularly monitors tax compliance in real estate transactions. Transactions in the Greater Toronto Area have been the subject of greater scrutiny, including audits, for some years. More recently the CRA has been actively monitoring and auditing real estate transactions in British Columbia.
The CRA uses a comprehensive approach to dealing with suspected non-compliance in any industry, including the real estate sector:
- The CRA studies the nature of the risk.
- The CRA increases compliance activities where there is material risk.
- Through experience and the use of third-party data, the CRA gains a better understanding of non-compliant behaviour, leading to more audits and compliance actions.
The CRA continuously evaluates risk as it relates to non-compliance. Resources are dedicated accordingly, and they can shift in relation to risks that develop.