On or before November 30, 2021, every relevant corporation, relevant trust, or relevant partnership (each, a "Reporting Body") holding a registered interest in land in British Columbia is required to complete and file a Transparency Report under the Land Owner Transparency Act ("LOTA"), unless the interest is transferred to another person before this date. An "interest in land" includes registered ownership of a property, leases with a term of more than ten years remaining as of November 30, 2020, or a right under an agreement for sale to occupy land or to require a transfer of the land.
On the Transparency Report, a Reporting Body is required to disclose, in addition to information about the relevant corporation, relevant trust, or relevant partnership, the following information on every individual that is a "interest holder" of the Reporting Body:
(a) Primary identification information:
(i) Full name;
(ii) Whether the individual is a Canadian citizen or permanent resident of Canada, and if not, every country and state of which he or she is a citizen;
(iii) City and province of principal residence, if in Canada, or city and country of principal residence, if outside of Canada;
(b) Date of birth;
(c) Last known address;
(d) Social insurance number or individual tax number, as applicable;
(e) Residency for tax purposes;
(f) Date on which they became or ceased to become an interest holder;
(g) A description of how the individual is an interest holder;
(h) Whether the Reporting Body was able to obtain and confirm the accuracy of the above information in sub-paragraphs (a) to (g) about the individual; and
(i) Whether the Reporting Body is aware of any determination of incapacity being made in respect of the individual.
"Interest holders" are:
1. For a relevant corporation, individuals that hold interests in 10% or more of the issued shares or voting shares, or have the right or ability to elect, appoint, or remove the majority of the directors (each, a "corporate interest holder");
2. For relevant trusts, individuals who: (a) have a beneficial interest in respect of the interest in land that is not contingent on the death of another individual; (b) have the power to revoke the trust and receive the interest in land; or (c) are corporate interest holders in a relevant corporation which has the interests or powers described in (a) or (b); and
3. For relevant partnerships, individuals that are partners in the partnership, or corporate interest holders in a relevant corporation that is a partner in the partnership.
While each Reporting Body has until November 30, 2021 to comply with this new Transparency Report requirement for pre-existing interests in land, given the complexity of the rules for determining whether a Transparency Report is required and the identity of the interest holders, we recommend that you contact us as soon as possible to review the relevant information and if applicable, to prepare the required Transparency Report.
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.