Tax facts

A real estate lawyer contacted us on behalf of clients who were seeking a land transfer tax exemption from the Ministry of Finance. They had just sold their home to Metrolinx in lieu of having it expropriated for a subway extension, and were in the process of closing their purchase of a new one. We were told the Ministry denied the request to exempt them from the transfer tax on the new home because they had not closed the purchase yet.

RESULT: As a result of our review, the Ministry acknowledged its error and approved the request for a land transfer tax exemption. The Ministry committed to delivering staff training to ensure accurate information is provided to other buyers in similar situations, and updating its website to provide clearer details about processes and timelines.