B.C. Man Fined $2M for Tax Evasion After Flipping 14 Homes
A Richmond man faces a hefty fine for failing to report millions in earnings from flipping homes over four years
Richmond, B.C., Tax Evasion, Property Flipping, Canada Revenue Agency
Richmond: So, there’s this guy, Balkar Bhullar, who got into some serious trouble for flipping houses. He didn’t report nearly $7.5 million he made from 14 properties. Can you believe that?
The Canada Revenue Agency caught up with him and slapped him with a fine of over $2 million. He even got a conditional sentence of two years minus a day. That’s a big deal!
He pleaded guilty to tax evasion last August. The CRA said he was raking in assignment fees but just didn’t bother to declare them. Assignment fees are basically what you pay to take over a property contract from someone else.
Now, the CRA is stepping up its game to tackle tax cheating in real estate. Starting January 1, there’s a new home flipping tax coming into play. If you sell a home within two years of buying it, you could be hit with a tax of up to 20%!
They estimate that around 4,000 properties will be affected by this tax in 2025. The money collected will go towards housing programs, which is a good thing, right?
B.C.’s Finance Minister, Brenda Bailey, mentioned that these measures are all about making homes more affordable and keeping speculative investors at bay. But not everyone is on board with this tax.
The B.C. Real Estate Association is worried it might backfire, causing sellers to hold off on listing their homes. That could tighten the market even more. It’s a tricky situation!
This whole story was first reported by The Canadian Press on December 27, 2024. Just goes to show, you’ve got to play by the rules when it comes to taxes!