Following the Budget 2019 announcements, the Canada Revenue
Agency (“CRA“) launched a Real Estate Task Force whose mission is to
deter tax non-compliance in the real estate market.
The federal government has allocated significant funds and
resources to scrutinize real estate transactions in which parties
have failed to comply with the appropriate regulations.
Here you will find a CRA questionnaire sent to selected
individuals and corporations as part of the audit process. The
questionnaire is broad, contains over 35 questions and requests
significant documentation.
This real estate audit program is specifically aimed and can
impact:
- Promoters and developers for sales
tax compliance; - Taxpayers involved in property
flipping activities; - Taxpayers earning commissions in the
real estate sector; and - Taxpayers reporting the sale of a
principal residence.
In light of the foregoing, structuring and planning real estate
transactions while ensuring tax compliance is of primary
importance. If you have received a similar information requests,
seeking legal guidance and advice is recommended before answering
the questionnaire.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.