It’s a continuing saga in Canada, almost $600 Million In unpaid taxes for real estate.
The Canada Revenue Agency uncovers another tax avoidance scam.
People selling, buying, flipping real estate and not paying their taxes on the gains they made.
This time it is close to $600 million.
And it should come as no surprise that this happened in the country’s hottest real estate markets – B.C. and Ontario.
And that means Vancouver and Toronto where there is an unusual amount of foreign investors buying real estate.
And here is the scary part – there is a belief at the agency that it is the tip of the iceberg.
And to take it a step further tax avoidance is a major problem in Canada.
And it has been for decades.
Canada, unlike other countries, does not jail people engaging in tax fraud. The result? Almost $600 Million In unpaid taxes for real estate.
Instead, those found guilty pay a fine on the amount owed and that’s the end of it.
And the government won’t make public the amount of taxes that are not being paid yearly due to tax avoidance schemes.
And that is mind-blowing, and so is the fact that the agency does not even track those who are not paying their taxes or the amounts.
Real estate transactions are an easy way to hide not paying taxes.
Government’s don’t pay a lot of attention to them to see if a scam is taking place. and a lot of those deals are being done by foreigners and that means there is no way of tracking them.