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Our News and Publications section provide regular updates and analysis on a growing range of topics, helping you stay on top of today's trends so you can plan for tomorrow.
Chinese student files lawsuit to halt B.C.’s 15% tax on foreign purchasers
National Post, 2016.09.20
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LexTransact Commentary on linked article: If this lawsuit were to be successful it would significantly curtail the ability of the Canadian federal/provincial governments to curb the inflex of foreign investors. However, given the amount of time it takes for these kind of cases to reach a conclusion (a number of years), it is likely its effect on the real estate market will be minimal, as market parameters would have significantly changed by the date of the release of the court decision.
Principal-residence exemption does not apply to speculation/house-flipping
Globle and Mail, 2016.09.13
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LexTransact Commentary on linked article: it is necessary to consider the fact that the principal-residence exemption on capital gains is a federal rule, while the B.C. 15% tax on non-resident only applies provincially. While reform on federal tax rules may go serve to curb speculation in markets such as Vancouver or Toronto, the application of the same reforms to cooler parts of the market (e.g. Ottawa) may not be appropriate. Regardless, if the suggested tax reforms are implemented, it would further complicate the tax code, and purchasers/sellers are recommended to seek the advice of professionals prior to the purchase/disposition of property.
Foreign buyers tax sending Vancouver house hunters to Toronto
CTV, 2016.09.01
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LexTransact Commentary on linked article: As some expected, the recently introduced foreign buyers tax is causing some buyers to set their sights eastwards. In the short run, home buyers in Toronto can expect greater pressure in purchase negotiations. In the long run, Toronto may introduce a similar tax, but whether this will cool the housing market only time will tell...