Supreme Court of Canada dismisses bid to appeal B.C. foreign buyer tax case

Summary

• The Supreme Court of Canada refused leave to appeal a challenge regarding British Columbia's foreign buyer tax on a Richmond property.
• The B.C. Court of Appeal previously ruled that the tax applied to the fair market value of the entire property rather than just the foreign national's registered share.
• The couple paid 40 per cent of the purchase price but registered the foreign partner with only a five per cent stake, citing a Chinese custom where a husband pays a "bride price."
• The B.C. government stated the rule aims to prevent tax avoidance by foreign investors holding beneficial interests indirectly.
• The appellate court found the couple could have avoided the full tax liability by registering ownership percentages that matched their actual financial contributions.
• The B.C. Supreme Court initially dismissed the couple's legal challenge in 2024.
• The original tax analyst assessed the additional tax owed at over $126,000 based on a 20 per cent rate applied to the property's value.
• The apartment's assessed value has increased from $474,500 at the time of purchase to $820,000.
• The couple's lawyer described the Supreme Court's decision as the "end of the road judicially" regarding the case.