Dissatisfied with foreign buyer tax Richmond Chinese lady sues government
Hua A Chinese lady in Richmond District, Vancouver City thought that it was unreasonable for the provincial government to let her pay 100% foreign buyer tax for the house she lived in, and she brought the provincial government to court.
Of The woman, Yang Zi, is a permanent resident of Canada and spent $ 1.6 million in 2017 to buy a detached house in Richmond. She then received a tax bill from the provincial government asking her to pay a $ 237,000 foreign buyer tax.
Ms. Tong Yang said that she bought the house as the main residence for herself and her family. The reason why her ex-husband in China also owns 1% of the property right is because when applying for a mortgage, the lender forced her to list her ex-guarantor as a guarantor.
In 2016, the Liberal Party government in BC introduced a foreign buyer tax in hopes of cooling the overheated Vancouver real estate market. At the beginning of the implementation, foreign buyers were required to pay an additional 15% tax. After taking office in 2018, the tax rate will be increased to 20%, and the scope of application will be expanded to include the provincial capital, the Fraser Valley, the Nanaimo region and central Okanagan.
CBC reporter learned from civil litigation documents that the provincial government required Yang Zi to pay foreign buyer tax for two reasons. The first is to question her financial relationship with her ex-husband. Although you are not a foreigner, there is evidence that you are holding a portion of the property for foreigners, Devon de Wynter, a Treasury auditor, wrote in a letter to Yang. The letter also asked her where she received a bank draft of $ 514,000 when she bought a house, and asked her to provide a copy of her bank statement.
The auditor s letter also mentioned: You acknowledged on the phone that some of the money was paid by your ex-husband, and later said that it was borrowed from your sister. So please use bank documents to clarify which is true.
Another reason is that according to the requirements of the government, after receiving the notice of paying the foreign buyer tax, if there are different opinions, a letter should be sent to the tax appeal department within 90 days. Ms. Yang s response exceeded this deadline. Her reason was that she did not speak English well. Her lawyer said the 90-day period should be considered standard practice and not mandatory by law. Yang s lawyer also said that as an immigrant whose second language is English and is not skilled enough, Ms. Yang should not be required to be familiar with the administrative practices of the tax authorities .
According to court documents, Ms. Yang sold the house last summer and bought another 2 million in the same area. There is no guarantor this time. Earlier, she had paid her calculated Canadian foreign buyer tax of $ 2,400, which was payable on the basis of 1% ownership of her ex-husband.