A serial property operator in British Columbia has been convicted of tax evasion and fined more than $2 million for failing to report nearly $7.5 million in profit.
The Canada Revenue Agency says in a news release that Balkar Bhullar, of Richmond, British Columbia, was sentenced to a conditional prison sentence of two years less a day on December 19 and fined approximately $2.15 million, corresponding to the amount of unpaid federal income tax.
The agency says Bhullar pleaded guilty on August 3 last year to one count of tax evasion, relating to undeclared income of approximately $7.49 million from the transfer of assignment fees on 14 properties from 2011 to 2014.
Conveyance fees are paid for the right to purchase real estate, in which the rights and obligations of a contract are transferred from one buyer to another.
The CRA says in a statement that it has made “significant progress” in uncovering and combating tax fraud in the real estate sector.
Get the latest national news
For news impacting Canada and around the world, sign up to receive breaking news alerts sent directly to you as they happen.
A new home resale tax will come into effect in British Columbia on January 1, with a tax of up to 20 per cent applying to homeowners who sell their properties within two years of purchase.
A statement from the Ministry of Finance indicates that approximately 4,000 properties will be subject to the tax in 2025 and that all revenue from the tax will be allocated to housing programs.
British Columbia Finance Minister Brenda Bailey said in a statement that measures such as the home resale tax aim to ensure there is more affordable housing for buyers and renters and to discouraging speculative investors from buying homes for a quick profit.
The BC Real Estate Association has criticized the tax, saying there is a “significant risk” that it will cause sellers to delay listing their homes, thereby reducing the supply of resale homes and tightening market conditions .
© 2024 The Canadian Press