The Canada Revenue Agency updates audit results relating to the real estate sector in British Columbia and Ontario
OTTAWA, May 17, 2018 /CNW/ – The Canada Revenue Agency (CRA) is committed to maintaining the fairness of Canada’stax system by addressing non-compliance in real estate transactions. The CRA knows that most Canadians pay their fair share of taxes. Nevertheless, there continue to be tax compliance risks in the real estate sector, particularly in the Vancouver and Toronto markets. In response to these risks, the CRA is continuing to take concrete action to crack down on those who fail to follow the law.
Over the past three years, CRA audits have identified $592.6 million in additional taxes related to the real estate sector. During this same period, CRA auditors reviewed over 30,000 files in Ontario and British Columbia, resulting in over $43.7 million in penalties.
Specifically in 2017-2018, the CRA assessed $102.6 million more in additional taxes than in 2016-2017. Penalties increased by $19.2 million from one year to the next.