A British Columbia property flipper has been convicted of tax evasion, resulting in a fine exceeding $2 million. The Canada Revenue Agency announced that Balkar Bhullar of Richmond, B.C., received a conditional sentence of nearly two years and a $2.15 million fine, equivalent to the unpaid federal income taxes he evaded. Bhullar admitted to the charge on August 3 of last year, which was related to unreported income totaling roughly $7.49 million from assignment fees gained on 14 properties between 2011 and 2014. Assignment fees are payments made for the right to purchase property, transferring the contract’s rights and obligations from one party to another.
The tax agency noted significant progress in tackling tax evasion within the real estate sector. A new home-flipping tax will be implemented in British Columbia starting January 1, imposing up to a 20 percent tax on sellers who list properties within two years of acquisition. The Ministry of Finance estimates that about 4,000 properties will be affected by the new tax in 2025, with all collected revenue redirected toward housing programs.
Brenda Bailey, British Columbia’s Finance Minister, stated that the home-flipping tax is intended to provide more affordable housing options for buyers and renters while deterring speculative investors. However, the B.C. Real Estate Association voiced concerns, warning that the tax might prompt sellers to delay listings, potentially constraining the housing market’s supply and worsening conditions.
