Ontario Land Transfer Tax : Tax tips

Regulation 697(3) under the Ontario Land Transfer Tax Act exempts transfers of land to a family corporation

In Ontario Land Transfer Tax normally has to be paid when transferring property to a corporation. Regulation 697(3) under the Ontario Land Transfer Tax Act exempts transfers of land to a family corporation to enable it to continue an active business. A recent Divisional Court case (Upper Valley Dodge Chrysler Limited v Minister of Finance, 73 OR (3d) 146) considered the regulation. In Upper Valley the individual owned the land and the corporation operated the dealership on it. He then transferred the land to the corporation. The taxpayer won under that regulation.

Determining the Value of the Consideration for Transfers of New Homes, Land Transfer Tax Act

The Ontario Ministry of Finance has recently published a Land Transfer Tax Bulletin entitled “Determining the Value of the Consideration for Transfers of New Homes, Land Transfer Tax Act”. The Bulletin contains information on how to calculate the value of consideration in the purchase of a newly constructed home and indicates that in certain circumstances the value of extras, are to be included in determining the value of consideration. The Bulletin may be obtained from the Ontario Government, Ministry of Finance.