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HOUSE FLIPPERS BEWARE!!

April 27, 2017
by Fraser Simpson

HOUSE FLIPPERS BEWARE!!

Under Ontario’s 16-point plan to tame housing is point 14 which reads as follows;

  1.  Partnering with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.

The province could provide the CRA with information to follow up on capital gains taxes that have not been paid. Through the changes to the collection of the land transfer tax, which go into effect April 24, Ontario will require buyers to declare whether a unit is being used as principal residence and therefore eligible for a tax exemption. Ontario is also demanding to know if you are leasing and the CRA could be armed with information about your rental income.

If you are flipping houses or condo’s you can expect a reassessment in the summer as the CRA matches provincial data with Federal tax records. If you are in this situation you can avoid the penalties by declaring a voluntary disclosure now.

Do not try an application yourself, one wrong move and you will not qualify for a penalty waiver. I have been doing this for over thirty years and have acquired the specialized knowledge concerning voluntary disclosures and the criterion for acceptance.

Interested in finding out more? Fill out our contact form or email David Harris at david@taxmechanic.ca.

For immediate help call 888-359-1490 now and we will call the CRA for you and register an anonymous voluntary disclosure to waive penalties.

Voluntary Disclosure Program (VDP)

As the Canada Revenue Agency (CRA) moves forward to aggressively address non-compliance on unreported income or unfiled taxes, it becomes more important that you need to be aware of the Voluntary Disclosures Programs (VDP)

The Income Tax Act allows the CRA to assess you penalties of up to 50% of the unpaid tax or the improperly claimed benefits. In addition, the court may, on summary of conviction, fine you 50% to 200% of the tax evaded, and even a jail term.
As soon as CRA initiates the contact, then it is too late. It could be one letter in the mail, one phone call, one personal visit, etc. Your life could change for the worst in a moment.

 

Mr. Simpson has been active in income tax consulting, residential and commercial real estate development since 1985. Prior to founding the Tax Mechanic, he held several senior management positions, including Director of Land development for a real estate investment company (John DiPoce Management) and Controller of Communicorp Multi Media Inc., a TSX listed company. Mr. Simpson obtained his Bachelor of Arts degree from York University, Toronto, and qualified as a Chartered Accountant in 1993. He has also completed the Canadian Securities and Partners, Directors and Senior Officers courses.

2 Comments
  • John M Ariss
    May 14, 2017 at 5:53 pm

    There is no justice. The institutions responsible for the unaffordability in the market are scapegoating the small potatoes investor, some of whom will pay for their greed, in order to deflect attention from the real issue, which is an escalation of the inequality in this class struggle. Business as usual.

  • John M Ariss
    May 14, 2017 at 5:40 pm

    There is no justice, the people responsible for the lack of affordability in the market are scapegoating the small potatoes investor, who is assuming all of the risk in assisting them in their charade, to deflect attention from the real issues that propagated their grand illusion.

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