All residential real estate owners have to file a speculation and vacancy tax declaration form every year to inform the local government that they do indeed live in their BC homes. Due to a large number of foreign home buyers, the government has set up this declaration to ensure that there are fewer empty homes in certain regions.
To get detailed information on this, the local government sends you a speculation and vacancy tax declaration letter each year that contains a list of all the properties you own every year. It is to remind you that you have to fill it out, update any information, and claim all of your properties. Even if there are not any changes from the previous year, you still have to file it.
As long as your BC home is your primary residence, you should not have to worry about this tax. However, if you live outside of the country and have forgotten to pay the tax, you will face severe interest penalties.
If you have not done your declaration yet, here is what you can do.
You Can Still File for a Follow-up
After March 31st, you will have officially missed the deadline. With that being said, you can and should still complete your declaration form.
The government will still consider your late form if there is an acceptable reason why you could not submit it on time. If circumstances arose in your family or your health that prohibited you from filing your annual vacancy tax declaration, you can use that story to explain your situation and why it was submitted late.
Make Sure You Pay ASAP
If you miss the deadline, you will be given a tax notice with a penalty and tax rate. The tax rate depends on the value of your properties and the rate often varies. Furthermore, there is an added interest on top of the tax that you owe, so the best thing to do is to pay as soon as possible.
Get Professional Help
In some cases, you may be out of town, or you may not fully understand the declaration letter and how it relates to you. When that is the case, it is best to consult a professional. A CPA can help you understand the spec tax, and help you properly prepare for it.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.
