Filing Property Transfer Tax for Legal Professionals
Effective September 17, 2018, under the Information Collection Regulation, individuals with a significant interest in a corporation or trust that acquires property may need to be identified on the property transfer tax return.
When you complete the Property Transfer Tax Return or the Additional Property Transfer Tax Return (FIN 532) (PDF), you must provide us with specific information, where applicable, about each purchaser, director, settlor and beneficiary. Requested information includes:
- Legal names
- Business number for corporations
- Social Insurance Number for individuals (for Canadian citizens or permanent residents or, if applicable, foreign nationals)
- Individual Tax Number, if available (for individuals who aren’t Canadian citizens or permanent residents)
- Date of birth
- Country of citizenship
See the Property Transfer Tax Return Guide to find out more about the specific information you have to provide.
Trustees and corporations that acquire property must identify all individuals with a beneficial interest in the trust or significant interest in the corporation on the property transfer tax return.
For beneficiaries of trust who are corporations, you must include the information on each director.
For each individual identified, you must include their:
- Date of birth
- Citizenship information
- Contact details
- Tax identifiers: Social Insurance Number (SIN), Individual Tax Number (ITN)
As with other information collected on the property transfer tax return, the data will be treated as confidential.
Where transactions involve Canadian citizens and permanent residents, their identity must be verified using official government issued identification.
When you electronically certify the returns, you are confirming that you used due diligence to identify and verify citizenship information. If it is determined that you assented to or participated in a false or deceptive statement in a return, penalties may apply.
A social insurance number (SIN) must be recorded on the Property Transfer Tax Return for Canadian citizens or permanent residents, or if available, for foreign nationals. A taxpayer can contact Service Canada to receive a SIN or replacement SIN card (paper).
Invalid SINs or other discrepancies on a return will lead to an audit and investigation of the transaction.
Additional Property Transfer Tax
If your client must pay the additional property transfer tax, the Additional Property Transfer Tax Return (FIN 532) (PDF) must be completed, signed by the client and submitted with the Property Transfer Tax Return. Use the Additional Property Transfer Tax Return to calculate the amount payable and enter the amount on the Property Transfer Tax Return.
Foreign national clients must still complete the Additional Property Transfer Tax Return (FIN 532) (PDF) even if they are exempt. If your client is exempt, you must:
- Enter $0.001 for the additional property transfer tax on the electronic Property Transfer Tax Return
- Attach the completed Additional Property Transfer Tax Return (FIN 532) (PDF) and any supporting documents to the Property Transfer Tax Return
Ensure you also attach any required supporting documents for the additional property transfer tax, such as documents proving citizenship, residency or trust status.
Find out how to add attachments to your Property Transfer Tax Return.
Further 2% Tax Rate on Residential Property Over $3,000,000
If your client must pay the further 2% tax on residential property over $3,000,000, the Property Transfer Tax Calculator for Residential Property over $3,000,000 (FIN 536) (PDF) must be completed and submitted with the property transfer tax return.
Find out how to add attachments to your property transfer tax return.
To apply for a refund, email your detailed refund request and any relevant documentation to firstname.lastname@example.org.
If you are eligible for a refund, a cheque will be issued to you. We don’t have the ability to redeposit funds back into your bank account.