The Anti-Avoidance Blues: Does A Foreigner's Title Nominee Share Purchase Constitute An "Avoidance Transaction"?

On August 2, 2016, the Province of British Columbia enacted amendments to the Property Transfer Tax Act (British Columbia) (the "Act") which introduced a new 15% property transfer tax (colloquially referred to as the "foreign buyer tax"). This tax currently applies when a foreign national or foreign corporation purchases residential property situated in the GVRD. The amendments also include a new anti-avoidance rule applicable to the foreign buyer tax only. This rule has yet to be considered by a Court, but on its face it may affect the ability of a foreign national or foreign corporation to safely avail itself of a routine feature in many purchase and sale transactions in British Columbia: the purchase of a title nominee's shares.