1084204 B.C. – BC Court of Appeal finds that an acquisition of a BC residential property by a foreign entity merely as agent for a resident was subject to 20% LTT

The respondent (“108”) was a BC company whose shareholder was a foreign national (Mr. Oeri), so that 108 was a “foreign entity” for purposes of the Property Transfer Tax Act (BC) (the “PTTA).

The chambers judge had found that an acquisition of a BC residential property by 108 was not subject to the additional transfer tax (“ATT”) of 20% imposed under the PTTA for acquisitions of such a property by a foreign entity because inter alia 108 acquired the property as agent for the common law spouse of Mr. Oeri (Ms. Sui), who was a Canadian permanent resident.

In reversing this finding and concluding that the purchase was subject to the ATT, Horsman JA referred to prior BC cases that “establish that, subject to statutory exemptions, property transfer tax is payable by the person to whom the legal estate is transferred (the 'transferee'), regardless of whether another person has beneficial ownership” and concluded:

Regardless of whether 108’s relationship with Ms. Sui could be characterized as an agency or a trust, or both, 108’s liability to pay the ATT arose on the registration of the transfer of the legal estate to 108.

Neal Armstrong. Summary of British Columbia v. 1084204 B.C. Ltd., 2025 BCCA 110 under PTTA, s. 1 – taxable transaction – (a)(i).