A report released by a new reporting company disclosed that the city of Ottawa is planning to have a tax loophole sealed. In places like Vancouver and Toronto, foreign buyers are using a tax loophole in the midst of the blazing housing markets.
According to a source, the Canadian government is putting plans in place to deal with the seeming abuse of age-old reservation that gives non-residents the right to purchase properties and afterward have a tax exemption claimed on the sale transactions of those houses.
The only people that will be entitled to this exemption will be only those that live in the country during the year they bought the home. An announcement made by the Minister of Finance, Bill Morneau, came in the light of the news conference scheduled to take place in Toronto, with no further details released. The increase in the price of houses over the past years in Toronto and Vancouver has propelled assumptions that foreign homeowners are causing the soaring of prices.