Chapter 19 Tax Flashcards
Which one of the following occupiers of real property would NOT be liable, by statute, for the real property taxes?
(1) the registered owner of a life estate
(2) the registered holder of a long-term lease
(3) the registered owner of an estate in fee simple
(4) the registered holder of an agreement for sale
2
Who determines the real property tax rate for general tax purposes in organized territories of British Columbia?
(1) the local municipal council
(2) the federal government
(3) the Assessor
(4) the Lieutenant-Governor in Council
1
Certain classes of properties receive a full or partial exemption from real property taxation. Which of the following would receive either full or partial exemption?
(1) crown land
(2) university property
(3) cemeteries
(4) all of the above
4
Which one of the following statutes affects the real property taxation system in British Columbia?
(1) Real Estate Services Act
(2) School Act
(3) Arbitration Act
(4) Land Transfer Form Act
2
Jennifer Joseph has lived alone in an apartment since the death of her husband ten years ago. She has just turned 60 years of age, retired from her job as a bus driver, and wants to begin gardening as a hobby to fill in her retirement years. She has found a small house which is selling at a price she can afford because it is the only residential property in an area of commercial development. The present owners, who are anxious to sell, have lived in the house for about twenty years and have developed a magnificent garden which appeals very much to Mrs. Joseph; however, she is worried about having enough retirement income to meet the mortgage payments and the property tax payments if she uses all of her savings as a down payment. Which one of the following statements is true?
(1) Mrs. Joseph should apply for a reverse annuity mortgage (R.A.M.) because a R.A.M. will require lower mortgage payments than a conventional mortgage.
(2) After Mrs. Joseph’s purchase, the property will continue to have an assessed value for real property tax purposes which is based on its value as a residential property.
(3) Mrs. Joseph may make application to defer payment of the net property tax for as many years as she owns and resides in the house.
(4) If Mrs. Joseph becomes an owner-occupier, the home-owner grants will allow reduction of her taxes to no more than $350.00.
3
Jim O’Hara owns a small office building located on the fringes of downtown Vancouver, BC. He has just leased the building to Citizens for an Everlasting Planet (CEP), a registered charitable organization. In this scenario:
(1) Mr. O’Hara may apply for a property tax exemption.
(2) Mr. O’Hara may apply for property tax relief.
(3) CEP may apply for a property tax exemption.
(4) None of the above.
4
Which one of the following factors would make a property owner eligible to apply for deferral of real property taxes?
(1) The property owner is a member of parliament.
(2) The property owner is a divorcee.
(3) The property owner is a widower.
(4) The property owner is a war veteran.
3
Which of the following properties would be fully exempt from property taxation?
(1) Martland, BC has recently built a new City Hall building. The former city hall is still owned by the municipality, but is now rented out and operates as a profitable art gallery.
(2) A church is located on a one acre parcel of land in Prince George, BC. The church has built a multi-family dwelling on a portion of the site to provide additional revenue.
(3) A university which permits community groups to use its playing fields during the summer.
(4) All owner-occupiers who earn less than $12,000 a year in gross income.
3
what does defferal of property tax mean?
Property tax deferment is a provincial low-interest loan program that helps qualified homeowners pay their annual property taxes on their principal residence. Taxes can be deferred for any year the homeowner lives in the home and continues to qualify for the program
which of the following statements is false regarding GST
- transactions will only be subject to GST if they are expressly listed in the legislation as a transaction for which GST applies
- GST is a value added tax
- compared to income tax, GST has a relatively low rate of taxation
- GST is imposed excise tax act
1
which of the following statements is TRUE regarding GST in a transaction for the sale of real estate?
- GST generally does not apply to the amount of the deposit until the closing date
- GST will always apply to reimbursements for pre payments
- under the excise tax act, the seller is the party who is required to pay the GST
- all amounts found on the statement of adjustments are subject to GST
1
yang was the owner of an office building in downtown vancouver. she recently sold the building to ashley for $100 million. Ashley did not pay the GST on the sales and Yang has just an assesment for the GST due on the sales of the property from the canada revenue agency(“CRA”) worth 5 million. which of the following statements is false?
- the 5 million is collectible immediately by the CRA
- Yang will have 90 days from the date of the assement to file an objection with the CRA if she wishes to dispute it
- if yang files and objection and it is affirmed by an appeals officer and the CRA, yang has exhausted her options in terms of appealing the the assesment
- yang may pursue ashley for the uncollected gst that she has been assesed for
3
which of the following would likely not fall under the definition of a “residential complex” under the excise tax act?
- land that is reasonably necessary for the use and enjoyment of the complex as a place of residence
- a detached home in which a family resides
- a condominium unit being rented out to a university student on a year-long lease
- a home that is used for short-term rentals on Air B & B
4
which of the following buyers who have purchased a residential property in the metro Vancouver regional district is most likely to be able to claim an exemption or a rebate for the foreign buyer’s tax?
- an American citizen who is living in Seattle and has purchased the land as an investment property
- a citizen of the united kingdom who purchased land in Vancouver while staying in Canada on a working holiday visa. she received status as a permanent resident of Canada 6 months after purchasing the home
- an investment company that was incorporated in Canada but operates under the control of a parent company in brazil
- a Canadian citizen who holds title on the property of a friend who is a Japanese citizen and is looking to move to Canada after finishing a 3-year work contract in tokyo
2
in which of the following scenarios would the profit, or capital gain, realized upon the sale of property be MOST likely to be completely exempt from tax
- the seller purchased the property as a long term investment
- the seller purchased the property in order to flip the real estate by selling it quickly for a profit
- the seller purchased the property to provide suplimental income by renting it out
- the seller purchased the property to live in as their principal residence
4
