Mississauga Board of Trade applauds the Federal Government for taking measures to stem the abuse of our tax code by foreign investors. A Globe and Mail investigation showed foreign investors buying up real estate and flipping it for a profit only to claim an exemption from paying tax under the principal residence clause.
Minister of Finance Bill Morneau will announce measures to close the loophole and curtail the abuse of this coveted section of the Income Tax Act. Revenue Canada reports it conducted 2,500 audits related to real estate from April 2015 to April 2016, in B.C. and Ontario. There were no results of the audits made available.
Mississauga Board of Trade policy committee will be reviewing, monitoring and examining this with a view to submit a resolution to the Canada Chamber of Commerce AGM next fall.
Full Globe and Mail Story: http://www.theglobeandmail.com/news/national/trudeau-government-to-close-foreign-buyers-loophole/article32204922/