
Fraud, tax avoidance and money laundering fueling Vanvouver's housing market - snowwindwaves
http://www.theglobeandmail.com/real-estate/vancouver/out-of-the-shadows/article31802994/
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snowwindwaves
To summarize the article, Kenny Gu is getting down payments from people in
China, then getting them a mortgage from a Canadian bank in Canada, and the
people in China buy the house in Vancouver and declare it to be their primary
residence. The arrangement Gu makes with the buyers is that they get a fixed
return on their down payment, he manages the property sometimes renting it out
but often not (one property had multiple complaints filed on it by the city
for bylaw violations), and he gets any capital gains that occur when the house
is sold.

Because the property is listed as a primary residence the capital gains are
tax free.

And he managed to pay $50,000 in income tax on profit of millions.

Also the CRA is afraid to go after these people for "fear of looking racist",
which was a quote from a management level meeting from someone in the CRA.

