Case information

Taxation — Provincial foreign buyer’s tax — Deputy Minister of Finance confirming liability for payment of additional transfer tax on property — Supreme Court of British Columbia setting aside assessment but Court of Appeal reinstating it — Whether Court of Appeal erred in holding applicant liable for foreign buyer’s tax — How should Torrens system of land title registration applicable under s. 23(2) of Land Title Act, R.S.B.C. 1996, c. 250, and similar legislation in other provinces apply in context of bare trust or agency arrangements for purposes of provincial taxing statute — Property Transfer Tax Act, R.S.B.C. 1996, c. 378.

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The applicant, 1084204 B.C. Ltd. (“108”) appealed a decision of the Deputy Minister of Finance confirming 108’s liability for payment of an additional transfer tax (“ATT”) on property under the Property Transfer Tax Act, R.S.B.C. 1996, c. 378 (“PTTA”). The ATT applies when the transferee is a “foreign entity”, a “taxable trustee”, or both, as per 2.02(2)(b). 108 was controlled by Hans Oeri. Mr. Oeri was neither a Canadian citizen nor a permanent resident of Canada on the date the property transfer was registered. As such, 108 was found to be a “foreign entity” within the meaning of the PTTA.

The chambers judge found that 108 was not liable for ATT; however, the Court of Appeal allowed the Province’s appeal and reinstated the ATT.