Audits for Property Transfer Tax

Any taxpayer can be audited. Audits are routinely conducted to ensure:

  • taxes have been paid correctly
  • exemptions have been claimed correctly

All property transfers subject to the additional property transfer tax are further reviewed and monitored for compliance. Special anti-avoidance penalties apply to these transactions. Discrepancies on a return lead to an investigation of the transaction.

Assessment Period

The assessment period for an audit starts on the date you register a title change at the Land Title Office and continues for one year for most transactions or two years if:

The assessment period for the additional property transfer tax on residential property transfers to foreign entities or taxable trustees is six years, unless you:

  • made a misrepresentation or committed fraud on a property transfer tax or additional property transfer tax return
  • made a misrepresentation or committed fraud when providing information under the Act
  • filed a waiver within the assessment period

In some cases, an audit is limited to a review of documentation such as your tax return. However, during a typical audit, you can expect us to:

  • review your records 
  • ask you for information about a transaction that may not be in your tax return
  • notify you if we need to inspect the property that has been transferred
  • discuss issues of interpretation that may arise from the audit
  • work with you to ensure the audit is completed in a timely manner
  • work with you to resolve any concerns you have as quickly as possible
  • safeguard your records without compromise

When the audit is complete we will, where appropriate:

  • review and explain the results
  • notify you if more tax is owed
  • notify you if you are entitled to a refund
  • make you aware of your options if you disagree with the results

If the audit determines you owe more tax, we will send you a Notice of Assessment that shows the balance owing. If you have questions about the notice or how it was determined, contact us.

If you still disagree with the results of the audit and/or the resulting Notice of Assessment, you can file an appeal.