CRA Launches Vancouver Housing Probe In Metro Vancouver

An investigation is ongoing within the red-hot housing markets in Metro Vancouver, launched by the Canada Revenue Agency. Speculation is rife regarding the “unscrupulous dealings” and foreign investment being responsible for the skyrocketing housing price within the area. Rumor has it that 50 income-tax auditors, 20 GST auditors, and 15 workload-development officers are currently diving into the matter as tax issues continue to arise in the Pacific region.

The agency has collaborated with FinTRAC in an attempt to determine tax obligations of homes that have been flipped, as well as identifying the builders who fall short of regulatory requirements.

FinTRAC, the Financial Transactions and Reports Analysis Centre, is an agency that is responsible for identifying and protecting the state from money Laundering and other illegal financial acts.

The agency is allocating its resources and is focusing on some of the areas highlighted in a continuing series of reports by The Globe into Metro Vancouver’s soaring real estate market, in which prices are reaching an all-time high.

“I have repeatedly raised concerns that the rules governing our real estate market are out of date. With unregulated, speculative global capital flowing into Metro Vancouver, we are seeing housing prices completely disconnected from local incomes,” Mayor Gregor Robertson said in an e-mail.

“First and foremost, housing needs to be for homes, not a commodity to make money with,” he said. “Given the amount of money flowing into Metro Vancouver real estate, we need a much more robust system of oversight and I support enhanced resources for the CRA for more tracking, auditing and enforcement within their jurisdiction.”

The CRA document also identifies as a topic of interest “individuals living in high-value areas in British Columbia who are reporting minimal income not supporting their lifestyle; individuals purchasing high-end homes with minimal income being reported [and] individuals who are not reporting all of their worldwide income”

In the document, it was also stated that“CRA compliance work will increase visibility and lead to more tax compliance, but will not address the major concerns about affordability of real estate.”