Just a reminder, flipping condos as a money making venture means you have to pay taxes on that income and the CRA is going after those who don’t report condo flipping profit.
From April 2015 to December 2017, the CRA audited 4,951 files in British Columbia and assessed $140.0 million as a result of these audits.
The penalties for non-compliance are harsh.
“The CRA will apply a penalty equal to 50% of the additional tax payable if a taxpayer knowingly makes a false statement when filing a return,” the CRA says. “During the period of April 2015 to December 2017, the CRA applied 1,254 penalties, totaling $38.6 million. The highest penalty was almost $2.5 million.”
Read the full article here.