B.C. court upholds $6M foreign homebuyers tax assessed on Burnaby property

Karin Larsen · CBC News

· Posted: Mar 19, 2025 4:35 PM EDT | Last Updated: 3 minutes ago

The British Columbia Court of Appeal has dismissed the assertion of a institution warring $6 cardinal successful overseas homebuyers taxation assessed connected the acquisition of a $30 million, 38-unit debased emergence flat gathering successful Burnaby, B.C.

The issue, spelled retired successful the determination written by Justice Harvey Groberman, was whether the purchaser's genitor company, which is incorporated successful China but whose shareholders are imperishable residents of Canada, should beryllium considered a overseas entity nether the Property Transfer Tax Act.

The Metrotown neighbourhood spot astatine 5978 Wilson Ave., was bought successful 2018 with $1,418,000 successful wide spot transportation tax paid astatine that time. 

But in December of 2020, the Ministry of Finance advised the proprietor that aft an investigation, and an additional $6 cardinal successful Additional Property Transfer Tax — also known arsenic the overseas homebuyers taxation — was being assessed due to the fact that the controlling corp of the purchasing institution was "neither incorporated successful Canada nor listed connected a Canadian banal exchange."

The $6 cardinal appraisal was appealed, archetypal to the ministry and past to the Supreme Court of B.C., earlier being brought earlier the higher court.

Groberman's reasons unpick the web of companies yet progressive successful the spot purchase.

The entity bringing the appeal, 1164708 B.C. Ltd., held the spot successful spot of different B.C. numbered company, 1162509 B.C. Ltd.

At the clip of the purchase, each shares in those two companies were owned by a 3rd B.C. corporation, Global Dingye Capital Ltd. Global Dingye had a sole shareholder, Nanjing Dingye Investments Real Estate Group Co. Ltd., which was incorporated nether the laws of the People's Republic of China. 

The determination says the bulk shareholder of the Nanjing corporation, Mr. Mailin Chen, and the number shareholder, Ms. Yongjin Yong, are some imperishable residents of Canada. 

In upholding the little tribunal decision, Groberman said: "The intent of the statute (cooling the lodging marketplace by making residential spot successful British Columbia little charismatic to overseas buyers) is not inconsistent with an mentation that includes overseas corporations owned by citizens or permanent nonmigratory of Canada arsenic overseas 'entities.'"