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Legislation and Commentary [§57.2] On application to register a “taxable transaction” (such as a transfer of an estate in fee simple) at the land title office, a transferee must file the property transfer tax return prescribed by the Act and pay the property transfer tax imposed to the Ministry of Finance. The Act sets out the rate of ...
- Contact Us
- Table of Contents
- Introduction
- 1 Ministry of Revenue Pre‑Approval
- 2 Undertakings
- 3 Trusts
- 4 Transfers Involving Corporations
- 5 Leases
- 6 Final Orders of Foreclosure
- 7 Land Exchanges
Documents required under the Act can be submitted by email, fax or mail, as per the contact information noted below. If this page does not completely address your situation, refer to the Act and related regulations, visit our website at ontario.ca/financeor contact us by: 1. Email: LTTGeneral@Ontario.ca 2. Fax: 905-433-5770 3. Telephone toll free: ...
This page has been prepared as a resource for legal and real estate professionals involved in the conveyancing of land in Ontario. It is assumed that users of this handbook have a working knowledge of conveyancing and electronic registration. It is hoped that this resource will result in the proper completion of the Land Transfer Tax Affidavit (Aff...
Transactions requiring Ministry of Finance pre‑approval
1. Conveyances from Individuals to a Family Business Corporation 2. Conveyances of a combination of surface rights and mineral rights 3. Lessees acquiring the freehold of a leasehold interest 4. Reduction of the consideration on acquisition of lands to replace lands taken under statutory authority.
Transfers from individual(s) to family business corporations pursuant to Regulation 697, R.R.O. 1990
In order to claim the exemption provided by section 3 of Regulation 697, R.R.O.1990 and to have deeds endorsed prior to registration, the taxpayer must provide the Ministry of Finance (MOF) with an "Initial Family Business Affidavit" and undertaking. The undertaking includes an obligation to provide the MOF with an additional affidavit within nine months following the fiscal year end of the corporation after the date of registration or disposition as well as relevant financial statements to v...
Transfer of a combination of surface rights and mineral rights pursuant to Regulation 703, R.R.O. 1990
Where the value of the consideration for a conveyance includes amounts paid for the acquisition of a combination of surface rights and mineral rights, Regulation 703, R.R.O.1990 exempts from tax any consideration attributable to the acquisition of mineral rights. The deeds must be reviewed by the MOF in order to ensure that a reasonable allocation has been made towards the consideration declared for the mineral rights and the surface rights. Tax will be collected and the deeds endorsed by the...
The Land Transfer Tax undertaking
1. An acknowledgement to provide documentation and information 2. An acknowledgement to pay any additional Land Transfer Tax and interest determined to be payable. An undertaking is an agreement whereby the taxpayer or their representative agrees to provide further documentation and information to the MOF to ensure that the correct value of the consideration was declared and that the correct amount of tax is or has been paid for any conveyance. The undertaking includes a further agreement to...
Situations where a Land Transfer Tax undertaking is required at the Land Registry Office
1. Fair Market Value 2. Tentative Value of Consideration 3. Land Registrar's Discretion An Undertaking must be provided to the Land Registry Office by either the transferee or the transferee's representative in the following situations: 1. Fair market value. Where the value of the consideration is deemed to be equal to the fair market value of the lands, the MOF must confirm that the value is within an acceptable range. Examples of situations where fair market value applies: 1. Transfers to c...
Situations where a Land Transfer Tax undertaking is required at the Ministry of Finance
An Undertaking must be provided to the MOF by either the transferee or the transferee's representative when deeds are presented for endorsement in the following situations: 1. Fair Market Value. As above. 2. Tentative Value of the Consideration. As above. 3. Discretion of the Land Transfer Tax Section. As per subsection 5(4) of the Act. 4. Family Business Exemption. When initially applying for this exemption, the required undertaking is part of Form LT 100 (Initial Family Business Affidavit).
Trust is not an entityNo change in beneficial ownershipChange in Legal Title onlySupplementary Affidavit must be submitted at time of registration.Transfer from corporation to shareholder
If the transferee on a conveyance is a shareholder of the transferor, the affidavit should be completed to confirm that the value of consideration is equal to the current fair market value of the land. Since there is no exemption for these transfers, tax is payable accordingly. The document may be accepted for registration and tax collected based on the declared value of the consideration with an undertaking given to the Land Registrar. The Affidavit or electronic statements should be complet...
Transfer to a corporation in return for shares
Any transfer of land to a corporation where any part of the consideration consists of the allotment and issuance of the corporation's shares, the value of the consideration is deemed to be equal to the current fair market value of the land. If the transaction is pursuant to an income tax rollover, shares must be issued in return for the transfer. The value of the consideration is, therefore, deemed to be equal to the current fair market value of the land(s) and tax is payable accordingly. The...
Actual consideration
If shares do not form part of the consideration and if the transferee is not a shareholder of the transferor, the actual consideration must be set out. Where the land is given as a contribution of capital, tax is payable on any consideration. If consideration is declared to be nil, the lands must appear on the financial records of the transferee corporation at nil cost. If actual consideration is declared to be nil, an explanation is required on the affidavit which must confirm that 1. shares...
Leases under 50 yearsLeases under 50 years with an option to purchaseLeases over 50 yearsExtensions and surrenders of leases.Final orders of foreclosure and conveyances to a mortgagee in lieu of foreclosure
In the case of a final order of foreclosure or conveyance to a mortgagee in lieu of a foreclosure, the value of the consideration is the lesser of: 1. the value of the consideration determined under clause (a) plus the amount owed under the mortgage or charge at the time it is foreclosed or the conveyance is made, including principal, interest and all other costs and expenses other than municipal taxes, secured by the mortgage or charge and owing at the time plus the amount owing similarly ca...
Equal land exchangesUnequal land exchangesLand of nominal value.1 (g) VALUE of land, building, fixtures & goodwill subject to Land Transfer Tax–Statement 9024. The Land Transfer Tax payable will be calculated on the total consideration automatically inserted in paragraph (g). The amount of tax payable will appear on the screen and will be adjusted according to any subsequent claims for exemption.
Accordingly, the transfer of shares of such a corporation will not affect the ownership of the property. One notable exception is the transfer of shares of a corporation in combination with the right to the shareholder to exclusive occupation or possession of a unit or apartment (sometimes known as an equity co-operative).
In this case, if the property or services are provided to a specified third party (for example, if the transfer payment agreement requires the grantee to provide training to individuals named by the grantor), a direct link may exist between the transfer payment and the provision of property or services and the transfer payment may be consideration for the supply made by the grantee.
Jan 1, 1991 · The grant or transfer of the legal ownership of an equitable interest in real property may, therefore, be considered a "sale" of real property. The consideration for the grant or transfer of the interest would then be subject to GST to the extent that the consideration paid is in respect of the acquisition of the interest and not for the ...
People also ask
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May 25, 2018 · Based on S. 2 (1) of the Ontario Land Transfer tax Act, Ontario’s Land Transfer Tax (LTT) applies to all transfers of land in Ontario upon registration of the conveyance, with few exceptions. Whenever one acquires land or acquires a beneficial interest in land, they incur land transfer tax. This tax is based on the amount paid for the land ...
