Land transfer tax

It matters in a business sale when the deal includes real estate or an interest in land, such as a lease. For share deals, see whether land transfer tax is payable on a share purchase.

Ontario

Section 2(1) of the Land Transfer Tax Act makes the person who tenders for registration a conveyance by which land is conveyed to a transferee responsible for paying it, when the conveyance is tendered or before. The Act defines “land” to include a leasehold interest or estate and goodwill attributable to the location of land, so read the definition against the assets in your deal. Section 3 also taxes a disposition of a beneficial interest in land that is not registered, subject to the exclusions it lists. This Act sets the tax itself, so check its rates, rules and exemptions directly.

British Columbia and Quebec

British Columbia says that when you purchase or gain an interest in property registered at the Land Title Office, you or your legal professional must file a property transfer tax return and pay the tax unless you qualify for an exemption. In Quebec, a municipality must collect a transfer duty from a new owner of an immovable on its territory, subject to exemptions. This entry covers Ontario, British Columbia and Quebec only; check the rules in the province where the land is.