Land Transfer Tax Act Record Keeping Requirements

By: Winnie J Luk and Trudie Tong

The Land Transfer Tax Act imposes an obligation on transferees (i.e., buyers) to keep all transaction-related documents, records and accounts to enable an accurate determination of taxes payable under the Act.

These records are to be kept for a period of at least seven years and must
be made available to the Ministry of Finance.

Commencing on December 16, 2017, a requirement on transferee to expressly acknowledge this obligation is being added to the title transfer document. In the alternative, the transferee may appoint a custodian to fulfil this obligation.

The transferee(s) must declare that they will keep at their place of residence in Ontario (or at their principal place of business in Ontario) such documents, records and accounts in such form and containing such information as will enable an accurate determination of the taxes payable under the Land Transfer Tax Act for a period of at least seven years.

The transferee(s) must agree that they or the designated custodian will provide such documents, records and accounts in such form and containing such information as will enable an accurate determination of the taxes payable under the Land Transfer Tax Act, to the Ministry of Finance upon request.