The British Columbia government is cracking down on tax evasion and bringing back transparency in BC’s real estate market. That means you, condo flippers.
The government has now launched the Condo and Strata Assignment Integrity Register (CSAIR) to do just that.
Cracking Down On Condo Flippers
“For too long, speculators and tax evaders have been taking advantage of loopholes in our real estate market, driving up prices and shutting British Columbians out of the market,” said Carole James, Minister of Finance, in a press release.
The press release goes on to acknowledge pre-sale flipping has been a factor in increasing real estate prices. It also acknowledges this practice has been used to facilitate tax evasion.
The lack of transparency in these sales make it difficult to know how many flips occur every year.
This new registry is in place to change that.
“B.C.’s housing market needs to work for British Columbians. With this new register, we are leading the country in real estate transparency and taking real action to moderate the condo market. We’re already starting to see results in Metro Vancouver,” said James.
The new registry will require developers to collect and report assigned information and file a report quarterly.
“The first quarterly assignment report, for Jan. 1 to March 31, 2019, is due to government April 30,” states the press release.
There is a $195 filing fee per assignment.
That information will help the BC government ensure that people who assign condos are paying the appropriate income tax, capital gains and property transfer tax.
Information gathered through this method will also help inform future housing and tax policy as this one part of the New Democrat government’s 30-Point Housing Plan to address housing affordability.
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