A serial real estate investor in British Columbia has been found guilty of tax evasion and fined more than $2 million for failing to report nearly $7.5 million in profits.
The Canada Revenue Agency says in a statement that Balkar Bhullar of Richmond, B.C., received a conditional sentence of two years less per day on Dec. 19 and a fine of about $2.15 million, equal to the amount of the tax unpaid federal income tax.
The agency says Bhullar pleaded guilty on Aug. 3 last year to one count of tax evasion, related to unreported income of about $7.49 million from the transfer of conveyance fees for 14 properties from 2011 to 2014.
Transfer fees are paid for the right to purchase a property, where the rights and obligations of a contract are transferred from one buyer to another.
The CRA says in a statement that it has made “significant progress” in uncovering and addressing tax fraud in the real estate sector.
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A new home investment tax will come into effect in British Columbia on Jan. 1, with a tax of up to 20 per cent levied on homeowners who sell properties within two years of purchasing.
A statement from the Ministry of Finance says it is estimated that around 4,000 properties will be subject to the tax in 2025 and all revenue collected from the tax will go towards housing programmes.
British Columbia Finance Minister Brenda Bailey says in the statement that measures like the housing investment tax aim to ensure more affordable housing for buyers and renters and discourage speculative investors from buying homes for profit. fast.
The BC Real Estate Association has criticized the tax, saying there is a “significant risk” that it will cause sellers to delay selling their homes, reducing the supply of resale homes and tightening market conditions.
© 2024 The Canadian Press
