Posted by & filed under Canadian governments, Personal Tax.

Description: Last week this blog featured a discussion on the shadow flipping phenomenon in BC, examining some of the ethical issues around the over-heated housing market. In this week’s provincial budget, the BC government took a number of steps to ease the pain. One of the efforts is a tax-break on the Property Transfer Tax for Canadian citizens and permanent residents on new homes of $750,000 or less. On the other side, the tax will increase for homes over $2 million.  In a measure more specifically linked to the shadow flipping phenomenon, BC is planning to gather more information on foreign buyers by reviving an old regulation requiring buyers to declare citizenship. The Finance Minister will await the results of a study due in April before determining if further action is required on shadow flipping.

Source: Globeandmail.com

Date: February 16, 2016; last updated February 17, 2016

Link: http://www.theglobeandmail.com/news/british-columbia/bc-budget-2016/article28765064/

Discussion Points:

1) Do you think the tax measures for houses under $750,000 will assist first-time home buyers?

2) If you were an accountant advising the BC government, what might you propose as a measure to help home buyers?

3) If the study to be delivered to the  BC Finance Minister reveals significant tax avoidance by shadow flippers, what can the BC government do to address it?

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