Foreign Buyer 15% Tax - AVOIDANCE RULE
If you are a foreign Buyer who entered into a contract to buy a property in Vancouver that the new 15% foreign Buyer tax will be applicable to, you do NOT have the right to assign the contract with the only intent of avoiding the new tax. Believe it or not, there is an "avoidance rule" which states if you take steps to avoid the tax (i.e. assigning the contract to a Canadian family member, etc.) you will attract the avoidance rule which has stiff penalties and/or jail time! **Additionally - if you as a realtor or developer willfully help a buyer try to avoid the tax you can be fined and or imprisoned as well!!!
This is why you always read the fine print or hire someone who will do it for you. These are serious rules. The government is looking to set an example.
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792
Fax: (778) 484-5252