According to recent data, due to overstating the real estate prices in the areas of Vancouver and Toronto, the CRA started to carry out an aggressive audit of the real estate market across Canada. Currently, the CRA audited over 1,800 files.
The CRA checks for information such as:
* Sources of funds for the down payment (so they can find unreported income).
* * Houses, bought and sold after a short time and is not a primary residence.
* Unreported GST / HST (helps to find fictitious transactions that are recorded in the family members as the primary place of residence).
* Unreported capital gains.
It is reported that the audit will become hardened and verifiable areas will increase.
For those who have broken the law, but decided to voluntarily repent and declare everything as it should be, the CRA will not apply penalties and does not blame of sheltering from paying taxes.