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Land Transfer Tax Exemptions applies to certain transfers between Registered Charities


Richard Weber on October 28, 2010 in Advice for Charities

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