File and pay property transfer tax

When you register an interest in a property, you or your legal professional must file a property transfer tax (PTT) return. Unless you qualify for an exemption, you must also pay property transfer tax and, if applicable, the additional property transfer tax.

The Land Title Office may refuse to register your property transfer if the tax isn’t paid on the date the transfer is registered.

How to file and pay

In most cases, property transfers are completed by a legal professional and they submit your return and payment to the Land Title Office.

If you’re a legal professional filing on behalf of your client, you must use the web-based property transfer tax return and pay the property transfer tax. For more details, see information for legal professionals on filing a property transfer tax return.

Surviving joint tenant

If you’re an individual who’s transferring an interest from another joint tenant who is deceased, use the Transmission to Surviving Joint Tenant online application through LTSA. You do not need a legal professional to claim that exemption from the property transfer tax.

This exemption does not apply to the additional property transfer tax.

Filing returns when improvements straddle more than one parcel of land

When you file your PTT return electronically through the Land Title Office, the Office may allow you to include more than one parcel identifier (PID) on Form A. In this situation, you can file one PTT return, include all the PIDs on this return, report the combined fair market value of all the parcels, and pay the PTT as a combined single transaction. If the Land Title Office requires you to submit more than one Form A (i.e. one for each PID), you must file a PTT return for each PID separately. In this situation, you must combine the full fair market value of the parcels, report the combined fair market value on the PTT return for one of the parcels, and pay the PTT as a combined single transaction. For the PTT returns associated with the other parcels/PIDs, report a fair market value of $0.01.

Tax avoidance and penalties

Completing a property transfer tax return, declaration, or refund applications with missing, incorrect or misleading information to evade or avoid paying the tax, is subject to a penalty.

As well as having to pay the corrected amount, a penalty applies in the same amount as was correctly paid. In effect, this penalty doubles the amount payable.

All property transfer tax returns and transactions are subject to review, verification, and audit. Normally, this will happen within six years from the date the transfer is registered. During this period, we may contact a person to request information or records.  

Any failure to comply with the request is subject to a penalty of $25 for each day the failure continues, with a minimum of $100, to the maximum amount of $2,500.

If someone deliberately does not comply with this request, or fails to comply in circumstances amounting to gross negligence, an individual is subject to a penalty of $150 per day to a maximum of $15,000. A corporation is subject to a penalty of $500 per day to a maximum of $50,000.

A transaction or a series of transactions that result in a tax benefit but are not undertaken primarily for a bona fide purpose other than obtaining the tax benefit is considered tax avoidance. If a person is found to be arranging avoidance transactions, they have to pay the amount that they avoided by the transactions. In some cases, a further penalty may apply, equal to the amount avoided.

These consequences apply even if a person is unaware of the provisions of the law. Those involved in property transactions may wish to receive legal advice if they are uncertain of their situation.