Ontario cracking down on phantom bids

Most real estate professionals are honest and unless there is a signed offer in place would never use the threat of a competing offer in an effort to drive up a property sales price.

But just to make sure a few bad apples don’t spoil the bunch Ontario plans to crack down on phantom bids.

The scam involves a sales agent hinting to prospective buyers there are other bids as a way to coax them to bid higher.“You say, ‘We’re expecting another offer. I do have another offer. You may want to go back to your client and make sure this is their best offer’,” says said Joseph Richer, registrar of RECO. “You are suggesting there might be competing offers when there may or may not be.”

With the new rules, “You cannot suggest or even imply that you have an offer unless you have one in writing, signed sealed and ready to be delivered,” said Richer, while adding there have been very few formal complaints about phantom bidding over the years.

Read the full article here.

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VanRant
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VanRant

May not be good news for HAMS:

Kurland said Canadian lawmakers have now passed a law (that will take effect next year) to prevent foreigners from applying for and attaining Canadian citizenship unless they file copies of four Canadian income tax returns from the six years prior to their application.

Kurland called the reform “a radical game changer” that would give the Canadian Revenue Agency the ability to audit citizenship applicants’ global assets and income. He said China and Canada have also signed a tax treaty that, once ratified, would allow for cooperation on tax investigations.

would-be buyer
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would-be buyer

VanRant – Link please?

space889
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space889
patriotz
Member

@1:

CRA can audit anyone whether or not they have filed income tax returns. You read about them going after people who haven’t filed returns all the time.

This sounds like more posturing by the Cons in lieu of actual enforcement.

VanRant
Member
VanRant
space889
Guest
space889
@VanRant – This isn’t as earth shattering you think, if it is even true. The reason is that Taiwanese immigrants already have this thing figured out back in the last 90s. I was told by the Taiwanese students I was TAing on how their parents filed income tax returns in both Taiwan and Canada and yet would appear to be 2 completedly different people. Also, for naked officials, the wives and kids don’t have active income anyways so unless you start taxing wealth and/or cash transfers, there isn’t going to be any impacts from this changes. For the business people, maybe there would be impact but it is again fairly easy to get around. Just have the company in China do all the expensive purchases and pay low salary and dividends. Exactly what a lot of small biz owners in… Read more »
space889
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space889
patriotz
Member

@6: “so unless you start taxing wealth and/or cash transfers, there isn’t going to be any impacts from this changes.”

Exactly right. Until the Feds or BC government get the gumption to deem taxable income based on local assets and consumption nothing is going to happen. Relying on a regime like China, where lying and cheating are a whole way of like, is a waste of time and IMHO just a diversion from taking real action.

Shut It Down Already
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Shut It Down Already

“… deem taxable income based on local assets and consumption ”

That’s simply unworkable for so many reasons. It’s possible to legally acquire wealth without having a high income. How would you even measure “consumption”?

space889
Guest
space889
@patriotz – You might be surprised at how tough tax enforcement can be in China, especially if you don’t have the right connections. There is no shortage of news stories in China where celebrity or big biz owners get send to jail and assets confiscated for not paying or under paying taxes. When is the last time you hear something similar in Canada? There is also no tax loopholes in China cuz there are no deductions or credits or tax refunds. Taxes are deducted at payroll and you will never get a cent of it back. Now, the thing is that tax is only levied on salary income in China. Capital gains from stocks, house flippings, etc are all currently taxed exempt. And obviously bribes don’t get taxes unless the person is caught. So all things considered, it is probably… Read more »
space889
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space889
@Shut It Down Already – CRA already has this power to assign a deemed income if they think your lifestyle isn’t matching your state income source. Unfortunately, this is only done when they get tipped off and looks like Harper gov’t is actually actively cutting budget in this area by firing auditors, etc. Now, if an immigrant brings in $10M asset and they can easily live a high life on investments return of as little as 5%. Investment returns are also taxed at extremely favorable rates relative to wage income, which I consider to be totally unfair. Most posters on this board, despite their supposed investment prowness, seems to unable to grasp this idea when they complain about tax evasions by immigrants. Yes, these wealthy people don’t have wage income but they have a lot of assets and investment income.… Read more »
VanRant
Member
VanRant

“China and Canada have also signed a tax treaty that, once ratified, would allow for cooperation on tax investigations”

Remember China does not allow for duo-citizenships so HAMs will choose Canada or China even thought they will not be able to hide under two different names anymore!

UBC in crisis mode
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UBC in crisis mode

“Most real estate professionals are honest and … …”

I am shocked that the editor has a sense of humor.

space889
Guest
space889
@VanRant – I think somewhere during the immigration process, you are allowed to an English official name and that will be used in all of your official papers. So unless the Canadian gov’t is keeping the before and after name records, it’s going to be a bit hard to automatically link the Chinese name with the English name. This was exploited by the wealthy HK and Taiwan immigrants to keep their home and Canada income & tax filings separate, and basically get best of both worlds. As well, Chinese is a mono-syllabic tonal language with only a few hundred or 1000 different sounds at most. So a sound like Lin or Li can have thousands of different characters and maybe even 10 different common family names associated with it. So something like Li Bingbing is going to be hard to… Read more »
Son of Ponzi
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Son of Ponzi

#14
thanks for the clarification.
This may also explain why there are many more Care Cards than there are Citizens in BC.

T
Guest
T

@15 Well Care cards are for citizens and perm residents so of course there will always be more care cards than citizens.

Son of Ponzi
Guest
Son of Ponzi

#16
Don’t be naive.
There are 8 million CareCards in circulation.

VanRant
Member
VanRant

@14 space889

China Targets Chinese with Dual Citizenship

http://learningenglish.voanews.com/content/china-dual-citizenship/2450269.html

Maybe thats why China signed a tax treaty with Canada.

Westside Realtor
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Westside Realtor

Slowdown is evident in my office’s pipeline review meeting.

Fewer willing and able buyers (few willing sellers either…until prices begin to drop).

Again, I believe Peak Insanity is now behind us.

WSR

VanRant
Member
VanRant

@18

From my recent trip to China, I have found the people living in China have a strong dislike for the wealthy group that had immigrate to other countries with their riches. Perhaps this is the way China wants to tell these people you are no longer welcome back

paulb
Member
Active Member

New Listings 316
Price Changes 71
Sold Listings 242
TI:13264

http://www.paulboenisch.com

Softy
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Softy
http://news.gc.ca/web/article-en.do?nid=985259&tp=1&_ga=1.39298725.706815767.1433900869 Remaining Citizenship Act reforms coming into force OTTAWA, June 5, 2015 /CNW/ – A final suite of reforms to strengthen and modernize Canada’s citizenship laws will be fully in force as of June 11, 2015. The changes – part of a package of measures approved by Parliament last year – ensure new citizens can fully and quickly participate in Canada’s economy and Canadian society. The first set of provisions that came into force last summer to strengthen Canadian citizenship and speed up application processing times are already paying off. New citizenship applications are being finalized in a year or less, and it is expected that the backlog of older files will have been eliminated by the end of this fiscal year. Individuals who submitted a citizenship application before April 1, 2015 will have a decision by March 31, 2016.… Read more »
realist
Member
realist

off this thread’s topic, but not irrelevant:

http://www.zerohedge.com/news/2015-06-09/60-year-old-vancouver-house-sells-40-above-asking-chinese-buyers-go-full-tilt

Americans, bless them, are parochial, especially regarding their Northern neighbour (so, I wouldn’t be surprised whether CNN and Anderson Cooper had to look up “Ottawa” in Wikipedia after the Parliament Hill shootings last year. And CNN only took notice after the financial markets did so, when the markets had a good few hours to get out their geography primers over lunch). But I digress…suffice to for Canadian news to come to the attention to Americans, it must be extreme. And it is!

gungho
Guest
gungho

ZeroHedge is such a shitty site and just basically fearporn, but some of the comments from the mostly rightwing nutjobs on there can be funny. Case in point:

Soon the Chinese will own all of the nice houses in Vancouver, and the poor Canadians will live in crowded decaying sections of town called “CanadaTowns” where they will cook Poutine, Meat Pies and Kraft Dinners while playing hockey in the streets. Those lucky enough to have jobs will either be working retail or as waitresses, or hope to find a job in one of the former Canadian companies that were bought out by a Chinese company.

Just start calling Vancouver a future ghost town in China, already!

w
Guest
w

Gang Yuan, dismembered millionaire, named in paternity petition

Chinese woman claims dismembered millionaire fathered her baby

http://www.cbc.ca/news/canada/british-columbia/gang-yuan-dismembered-millionaire-named-in-paternity-petition-1.3103934

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