Tag Archives: Canadian Revenue Agency

Tax and Real Estate – Tax Authorities Scrutinizing Real Estate Transactions

Following the Budget 2019 announcements, the Canada Revenue Agency (“CRA”) launched a Real Estate Task Force whose mission is to deter tax non-compliance in the real estate market.

 The federal government has allocated significant funds and resources to scrutinize real estate transactions in which parties have failed to comply with the appropriate regulations.

Here you will find a CRA questionnaire sent to selected individuals and corporations as part of the audit process. The questionnaire is broad, contains over 35 questions and requests significant documentation.

This real estate audit program is specifically aimed and can impact:

  • Promoters and developers for sales tax compliance;
  • Taxpayers involved in property flipping activities;
  • Taxpayers earning commissions in the real estate sector; and
  • Taxpayers reporting the sale of a principal residence.

In light of the foregoing, structuring and planning real estate transactions while ensuring tax compliance is of primary importance. If you have received a similar information requests, seeking legal guidance and advice is recommended before answering the questionnaire.

Nicolas Simard has extensive experience in every kind of tax litigation concerning income tax, consumption taxes and voluntary disclosure. He may be reached at 514-397-5288.


David H. Benarroch specializes in many areas of tax, including tax litigation, tax compliance and tax planning.

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