VANCOUVER (NEWS 1130) – The provincial NDP is calling for a formal investigation into claims of tax evasion and insider trading in Metro Vancouver’s real estate market. According to the NDP’s housing critic David Eby, the province could be losing out on hundreds of millions of dollars in tax revenue because of shady realtors.
Eby claims several sources have told him that some realtors have been avoiding property transfer and capital gains taxes while exploiting a clause that allows for a series of home flips.
“The original seller may not be aware this is happening. They’ve sold their home and they’ve moved on. So who is investigating and who is detecting it? These matters need to be thoroughly canvassed by the provincial government.”
Eby adds real estate agents have been helping clients hide where money is coming from by putting the broker’s address instead of the purchaser’s address on FINTRAC forms.
“Realtors are allowing, in some cases, their clients to use their broker address, rather than their own address when filling out federal government anti-money laundering forms. This has the effect of lowering the perceived risk of the money coming into Canada from the perspective of the investigating agency.”
Eby says the practices are driving up housing costs for British Columbians. The MLA for Vancouver Point Grey has contacted the Real Estate Council of BC, but he’s not satisfied anything is being done about the concerns. He plans to take the issue up in the legislature, when it resumes tomorrow.
Read the full article here: http://www.news1130.com/2016/02/08/ndp-calls-on-province-to-investigate-metro-vancouver-realtors/