On February 18, 2016, the Ontario Ministry of Finance published
retroactive amendments to regulation 70/91 to the Land Transfer
Tax Act (Ontario), pursuant to which an acquisition of an
interest in a partnership that owns land in Ontario is generally
not subject to Ontario land transfer tax so long as the
acquirer's interest in the partnership does not increase by
more than five per cent (the "de minimis
exemption"). This exemption has historically been relied on by
real estate investment trusts (REITs) and other pooled investment
vehicles acquiring real property in Ontario on the basis that the
five per cent ownership test applies on a look-through basis to the
ultimate beneficial owners.
Under the amended regulation, the de minimis exemption
will not apply to any acquisition by a trust (including a REIT) or
a partnership, regardless of how upstream ownership is
The amendments, which are described in the related Ministry of
Finance release as "clarifying amendments", are
retroactive to July 19, 1989 (when the original de minimis
exemption first came into force) and accordingly are applicable on
their face to many completed transactions, including those that may
currently be under review. It is highly unusual for the government
to make such a significant change to tax legislation on a
The Finance release indicates that an administrative exception
will apply to transactions that were the subject of a written
ruling by the Ministry issued on or before February 18,
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Please join members of the Blakes Commercial Real Estate group as they discuss five key provisions of a commercial real estate purchase agreement that are often the subject of much negotiation but are sometimes misunderstood.
Emotional culture is influenced in great part by the mindset and actions of leadership, although employees also play more of a role than they may realize in creating the culture that exists in the group.
The session will be led by Dr. Robert Brooks, an award-winning author and psychologist. In his presentation, Dr. Brooks will describe the mindset and realistic practices of leaders and staff that help to nurture and sustain a culture characterized by positive emotions, satisfying, respectful relationships, a sense of meaning and ownership for one’s work, and enhanced job performance. Examples will be offered to illustrate strategies for developing a positive emotional culture in an organization.
Join leading lawyers from the Blakes Pensions, Benefits & Executive Compensation group as they discuss recent updates and legal developments in pension and employee benefits law as well as strategies to identify and minimize common risks.
The CRA provides new housing rebates for individuals who have purchased or built a new house or have substantially renovated a house or made a major addition to a house who plan on living in it personally or letting a relative live there.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).