Regulation - Minister
Timing of Tax Payable under Subsection 3 (2) of the Land Transfer Tax Act
Regulation Number(s):
O. Reg. 343/18
Instrument Type:
Regulation - Minister
Bill or Act:
Land Transfer Tax Act
Summary of Decision:
A new regulation has been made by the Minister of Finance under the Land Transfer Tax Act. The regulation provides for Land Transfer Tax (LTT) imposed under section 3 for certain dispositions of a beneficial interest in land through a qualifying entity to be payable no later than the 30th day after the end of the specified calendar year quarter in which the disposition occurred. The regulation does not apply to the Non-Resident Speculation Tax.
The regulation has been filed with the Registrar of Regulations and came into effect retroactively on January 1, 2018.
The regulation has been filed with the Registrar of Regulations and came into effect retroactively on January 1, 2018.
Further Information:
O. Reg. 343/18
Proposal Number:
18-MOF018
Posting Date:
Summary of Proposal:
O. Reg. 343/18 provides for Land Transfer Tax (LTT) imposed under section 3 for certain dispositions of a beneficial interest in land through a qualifying entity to be payable no later than the 30th day after the end of the specified calendar year quarter in which the disposition occurred. It does not apply to the Non-Resident Speculation Tax.
A qualifying entity is a trust or partnership in which 50 or more persons hold an interest on the first day of the year in which the disposition occurs. These interests can be held directly or indirectly (i.e., through one or more other partnerships or trusts).
Under the regulation, the ability to pay quarterly applies to LTT that arises when a person acquires an interest in a qualifying entity, or when a person's interest in a qualifying entity is increased. However, the regulation would generally not apply when a partnership or a trust that is a qualifying entity acquires land, or an interest in land, as property of the partnership or trust.
Interest on a late remittance starts to accrue on the 31st day after the end of the specified calendar year quarter in which the disposition occurred.
A qualifying entity is a trust or partnership in which 50 or more persons hold an interest on the first day of the year in which the disposition occurs. These interests can be held directly or indirectly (i.e., through one or more other partnerships or trusts).
Under the regulation, the ability to pay quarterly applies to LTT that arises when a person acquires an interest in a qualifying entity, or when a person's interest in a qualifying entity is increased. However, the regulation would generally not apply when a partnership or a trust that is a qualifying entity acquires land, or an interest in land, as property of the partnership or trust.
Interest on a late remittance starts to accrue on the 31st day after the end of the specified calendar year quarter in which the disposition occurred.
Contact Address:
Clarence Tong, Financial & Administrative Coordinator,
Corporate and Commodity Taxation Branch, Ministry of Finance
Frost North, 2nd Floor
95 Grosvenor St, Toronto, ON M7A 1Z1
Corporate and Commodity Taxation Branch, Ministry of Finance
Frost North, 2nd Floor
95 Grosvenor St, Toronto, ON M7A 1Z1
Effective Date:
January 1, 2018
Decision:
Approved