CdnNatlAssocOfRealEstateApp.indd 1 16-04-11 1:26 PM
CMB MAGAZINE cmba-achc.ca summer 2016 | 19
transfertax
Quebec announced in March of this year
that it intends to close a loophole in the rules
pertaining to its property transfer tax, which
in that province is referred to as mutations
tax on immovables.
Previously, mutations tax was only
payable to the applicable municipality on
property transfers that are registered in the
land title system. In many cases, parties
would transfer property without registering
the transfer in the land title system;
thus, they avoided paying the tax to the
municipality.
Under the new rules, mutations tax
will be payable on property that changes
hands regardless of whether the transfer is
registered. e registry office will
continue to report transfers to municipalities
to assist them in collecting the tax.
However, parties who transfer property
without registration must now inform the
municipality within 90 days of the transfer
in order to be assessed with mutations tax.
Parties who fail to inform the municipality
will be penalized with a 50 percent penalty
plus accrued interest.
is change may come as a surprise to
many new homeowners. It is recommended
that mortgage brokers in Quebec take note of
the mutations tax changes when determining
the funds needed by a borrower to close a
transaction.
Closing a Loophole
Quebec's property transfer tax catches up with those who aim
to cheat the system
BY SAMANTHA GALE, CMBA EXECUTIVE DIRECTOR
