Regulation 697(3) under the Ontario Land Transfer Tax Act exempts transfers of land to a family corporation
In Ontario Land Transfer Tax normally has to be paid when transferring property to a corporation. Regulation 697(3) under the Ontario Land Transfer Tax Act exempts transfers of land to a family corporation to enable it to continue an active business. A recent Divisional Court case (Upper Valley Dodge Chrysler Limited v Minister of Finance, 73 OR (3d) 146) considered the regulation. In Upper Valley the individual owned the land and the corporation operated the dealership on it. He then transferred the land to the corporation. The taxpayer won under that regulation.
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