Tax Evasion in Vancouver is Ridiculous, Here’s Why
As if the situation with Vancouver real estate wasn’t bad enough already, there are new pieces of evidence coming to light that prove that there are more bad things going on than you thought. If you are following the real estate world, some of this won’t be new news, but it is something that will impact anyone who wants to get into the know on real estate in the fast paced and built up environment that makes up Vancouver.
The problem is that foreign buyers are going out and snapping up all kinds of property and then getting out of paying taxes by saying that it all is to do with principal homes. Since personal and principal homes are not taxable, this is a loophole that foreign people have been getting into, both those looking to make a home here, or those who are using people living here, while pulling the strings overseas.
A recent story that has come to light in support of this is the fact that of Mr. Gu. This is a true professional that has earned his income by working as a real estate agent. He has bought homes, flipped them, sold them, and then done the same thing again. This is all good in theory, but the thing is that this is actually a fraud situation.
At the time that he was required to pay taxes, he claimed that he owned several homes and these homes were not taxable, so he was able to take a lot of the money for himself and keep it in his personal bank account. The official claims are still being disputed, but the damage has been done to the trust of those who are looking for a way to pick apart the world of foreign investors.
The main solution that they have come up with is to simply track things better. Be more aware of the things that can go wrong, and track the money and the people it is going to. This is the best way to stay on top of the situation to make sure that similar things don’t happen. That being said, while this is the easiest solution, it is not one that the government supports. There isn’t a reason yet, as to why this is the case, but it is not being followed.
The best solution that is one the government supports, is to just be stricter on the rule according to the CRA. Make sure the documents are all checked and perfected to guarantee that everything is as it says it is and that there are no red flags. This is the best way to take on the world of deceit and financial guessing that is going on in this busy place.
The market has a long way to go before it gets to the point where it can be accessible to many people who are looking, but it is encouraging to see that at least there is acknowledgement of a problem, even if a great solution has yet to be found.