It is clear that the government is losing millions in lost tax revenue as many homeowners use loopholes and tricks to avoid paying their fair taxes.
The Canada Revenue Agency has been given another $50 million over five years to root out tax avoidance in matters such as:
• Reporting the sale of a primary residence
• Ensuring proper taxes are paid on the sale of a second property
• Reporting gains from real estate ‘flipping’
• Reporting commissions on home sales as taxable income
• Builders charging and remitting GST or HST on new home sales
The government says those crackdowns are expected to pay for themselves and then some, bringing in $68 mn worth of revenue over the next half decade. In other words, it will cost $50mn to ensure $68mn. In other words, it will cost $50mn just to bring in $18mn of pure tax revenue. -CINEWS