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Ottawa Backs Down on Digital Tax Dispute Amid Pressure from Trump White House

Canada has reportedly agreed to delay its planned digital services tax (DST) following pressure from former U.S. President Donald Trump’s administration, according to a recent statement from the White House. The tax, which was originally slated to target tech giants like Amazon, Meta, and Google, had been a major sticking point in U.S.-Canada trade discussions. The White House claimed Canada “caved” to U.S. demands after months of negotiations, with Trump’s team arguing the tax unfairly targeted American firms. The Canadian government, however, framed the delay as a strategic move to preserve economic stability and avoid retaliatory tariffs. Critics within Canada argue that the government’s decision reflects a growing trend of yielding to U.S. economic influence, while others say the delay is pragmatic given ongoing global talks about a coordinated approach to taxing digital revenues. The issue remains contentious, and observers are watching closely to see whether Canada will revive th...
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Richmond Man Fined $2M for Tax Evasion After Flipping 14 Homes

 

A serial property flipper in British Columbia, Balkar Bhullar, has been fined over $2 million for tax evasion. Bhullar, who flipped 14 homes between 2011 and 2014, failed to report nearly $7.5 million in earnings. The Canada Revenue Agency (CRA) announced that Bhullar was given a conditional sentence of two years less a day on December 19, 2024, and fined $2.15 million, matching the amount of unpaid federal income tax.

Bhullar pleaded guilty to one count of tax evasion on August 3, 2023, relating to undeclared income from assignment fees on the properties. The CRA has been making significant progress in uncovering and addressing tax cheating in the real estate sector. 

In response to such cases, a new home-flipping tax will come into effect in B.C. on January 1, 2025, with a tax of up to 20% applying to homeowners who sell properties within two years of buying. The revenue collected from this tax will go toward housing programs.

B.C.'s Finance Minister Brenda Bailey stated that measures like the home-flipping tax aim to ensure more affordable homes for buyers and renters and discourage speculative investors from buying houses for a quick profit.

The B.C. Real Estate Association has criticized the tax, arguing that it may cause sellers to delay listing their homes, lowering resale housing supply and tightening market conditions.




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