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Your website is very very informative. I wonder whether you can help me with
my question. My sister (a British citizen) bought some land (real estate) in BC
10 years ago, should she sell it in the future, does she have to pay taxes to CRA on capital gains and if so, how and what percentage?
Thank you and waiting to hear back.
Thanks for your questions. Your sister has to apply for an application for a Certificate of Compliance with the CRA within 10 days of the closing date. With this certificate, she will attach a payment made payable to the Receiver General of Canada for 25% of the gain realized on the sale.
Once the buyer's lawyer receives the Certificate issued by the CRA, then he/she will release the money held-back from your sister. 25% of the sales proceeds are held-back until a Certificate of Compliance is provided.
Finally, a Section 116 Non Resident Tax Return must be filed by April 30 following the year of sale in order to report the capital gain.