Effective March 26, 2010 an exemption from land transfer tax applies to certain transfers of land between trusts and non-profit non-share capital corporations that are registered charities (Qualifying Trusts and Qualifying Corporations).
Requirements for transfers to qualify for the exemption
- Transfer from a Qualifying Trust to a Qualifying Corporation
- Transfer from a Qualifying Corporation to another Qualifying Corporation
- Transfer must occur on or after March 26, 2010 for nil consideration other than the assumption of any encumbrance registered against the land
- The Qualifying Trust must have been the owner of the land immediately prior to the transfer
- The Qualifying Corporation must have been beneficial owner of the land immediately prior to the transfer
- The transferor must have paid land transfer tax when it acquired to land
- The transferor must have held the land for charitable purposes
Claiming Tax Refunds
If land transfer tax has been paid on a transfer of land that is eligible for the exemption, an application for a tax refund may be made within four years from the date on which the tax was paid. The following information must be submitted with the application for refund:
- A copy of the registered instrument on which the land transfer tax was paid
- Proof of payment of the tax
- A copy of the purchase and sale agreement
- A copy of the statement of adjustments
- A completed Affidavit re transfer between registered charities
