Frequently asked questions and a CPD program on the LTT and NRST changes
LAWPRO and other stakeholders have had discussions with the Ministry of Finance on some of the questions and issues raised by the changes to the Land Transfer Tax (LTT) and the new Non-Resident Speculation Tax (NRST). To assist the real estate bar, we are sharing information provided to us by representatives of the Ministry of Finance.
When do the LTT and NRST transition periods end? The transition periods for both LTT and NRST changes end as of close of registration, Friday, May 5, 2017. Any transfers registered on or after May 8, 2017, will be required to have relevant LTT and NRST statements in them.
- Does the NRST have to be paid during the transition period? While there is no obligation to collect or submit NRST information in the transition period, the NRST must be paid if applicable. See the next question.
- Does the NRST have to be paid before legislation creating it is enacted? The Ministry of Finance takes the position that it would be prudent to pay as the expectation is that it will be enacted and will be retroactive, and clients could be subject to interest and penalties in the event of non-payment.
- Will the Ministry of Finance Compliance Branch office in Oshawa accept NRST payment before legislation is passed? Yes, the Oshawa office will accept payments. The Ministry of Finance has stated that confirmation numbers will generally be provided on the same day, but might take as long as 5 business days.
- When will lawyers be subject to penalties? The LTT and NRST details requested are the client’s statements of fact for which the lawyer typically relies on information provided by the client. The Ministry of Finance takes the position that a lawyer must have knowledge that the client lied to be subject to NRST penalties.
- When will the NRST statement be a mandatory part of the transfer form? Ministry staff advise this is likely to happen by the fall.
- Will there be an option to pay the NRST via Teraview? Yes, eventually you will be able to pay the NRST via Teraview.
- If the LTT statement on a transfer is that prescribed information is not required, is there still an obligation to provide it? And, is a confirmation number still required in this circumstance? The Ministry of Finance advises that the answers to both these questions are no.
- How do I complete the PIPS5 Form for a property with 2 or more PINS? The Ministry of Finance is looking into this.
- Who can answer my LTT and NRST questions? The government has directed that lawyers who have questions or are looking for assistance on the LTT and NRST changes should contact:
Ministry of Finance
Manager, Land Taxes
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
Toll-free: 1-866-ONT-TAXS (1-866-668-8297)
Teletypewriter (TTY): 1-800-263-7776
Ministry website: ontario.ca/finance
Special OBA CPD on LTT and NRST Changes
The Real Estate Section of the Ontario Bar Association has organized a special CPD lunchtime program on May 4, 2017 to help lawyers understand the LTT and NRST changes: Non-Resident Speculation Tax And Prescribed Information For The Purpose Of Section 5.0.1 Form – What You Need To Know. Expert speakers will provide a detailed review of what real estate practitioners need to know and do in the wake of new requirements imposed by the Ministry of Finance. Visit OBA for more details and to register. The sponsors of this program are LawyerDoneDeal and TitlePLUS.