{"id":1162,"date":"2018-02-01T02:36:22","date_gmt":"2018-02-01T02:36:22","guid":{"rendered":"http:\/\/canadafirst.nfshost.com\/?p=1162"},"modified":"2018-02-01T02:36:22","modified_gmt":"2018-02-01T02:36:22","slug":"wealthy-ghost-immigrants-using-empty-homes-to-claim-citizenship-tax-expert","status":"publish","type":"post","link":"https:\/\/canadafirst.nfshost.com\/?p=1162","title":{"rendered":"Wealthy &#8216;ghost immigrants&#8217; using empty homes to claim citizenship: tax expert"},"content":{"rendered":"<div class=\"gmail-m_33083604567874069gmail-playa-headline\">\n<h1 class=\"gmail-m_33083604567874069gmail-articleHeadline\" style=\"text-align: center;\"><span style=\"color: #ff0000; font-size: xx-large;\">Wealthy &#8216;ghost immigrants&#8217; using empty homes to claim citizenship: tax expert<\/span><\/h1>\n<\/div>\n<div class=\"gmail-m_33083604567874069gmail-playa\">\n<div class=\"gmail-m_33083604567874069gmail-playa-playa\"><\/div>\n<div class=\"gmail-m_33083604567874069gmail-listing-box\">\n<div id=\"gmail-m_33083604567874069gmail-storyPlayerNav\" class=\"gmail-m_33083604567874069gmail-playa-list\">\n<div id=\"gmail-m_33083604567874069gmail-1314078\" class=\"gmail-m_33083604567874069gmail-playa-items\">\n<div>\n<div><a>&#8216;Ghost immigrants&#8217; faking a presence in Canada<\/a><\/div>\n<div>\n<div id=\"gmail-m_33083604567874069gmail-1314078lock\"><\/div>\n<p><a><img decoding=\"async\" src=\"https:\/\/www.ctvnews.ca\/polopoly_fs\/1.3779713.1517231763!\/httpImage\/image.jpg_gen\/derivatives\/landscape_150\/image.jpg\" alt=\"\" width=\"110px\" height=\"62px\" \/><\/a><\/div>\n<div class=\"gmail-m_33083604567874069gmail-vid-desc\">Tax and immigration specialist David Lesperance explains how so-called &#8216;ghost immigrants&#8217; circumvent Canada&#8217;s immigration system.<\/div>\n<\/div>\n<div><\/div>\n<\/div>\n<\/div>\n<div id=\"gmail-m_33083604567874069gmail-storyPlayerNavPager\" class=\"gmail-m_33083604567874069gmail-playa-page\"><\/div>\n<\/div>\n<\/div>\n<div id=\"gmail-m_33083604567874069gmail-responsive_main\" class=\"gmail-m_33083604567874069gmail-content-primary\">\n<section class=\"gmail-m_33083604567874069gmail-story gmail-m_33083604567874069gmail-project gmail-m_33083604567874069gmail-clearfix\">\n<div class=\"gmail-m_33083604567874069gmail-container\">\n<div class=\"gmail-m_33083604567874069element gmail-m_33083604567874069gmail-article\">\n<div class=\"gmail-m_33083604567874069gmail-tools gmail-m_33083604567874069gmail-clearfix\">\n<div id=\"gmail-m_33083604567874069gmail-componentDiv_gig_containerParent\" class=\"gmail-m_33083604567874069gmail-gigya-space\">\n<div class=\"gmail-m_33083604567874069gmail-gig-bar-container gmail-m_33083604567874069gmail-gig-share-bar-container\">\n<table cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td>\n<div class=\"gmail-m_33083604567874069gmail-gig-button-container gmail-m_33083604567874069gmail-gig-button-container-count-none gmail-m_33083604567874069gmail-gig-button-container-print gmail-m_33083604567874069gmail-gig-button-container-print-count-none gmail-m_33083604567874069gmail-gig-share-button-container gmail-m_33083604567874069gmail-gig-button-container-horizontal\">\n<div id=\"gmail-m_33083604567874069gmail-componentDiv-reaction5\" class=\"gmail-m_33083604567874069gmail-gig-button gmail-m_33083604567874069gmail-gig-share-button gmail-m_33083604567874069gmail-gig-button-up gmail-m_33083604567874069gmail-gig-button-count-none\" title=\"\">\n<table cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td id=\"gmail-m_33083604567874069gmail-componentDiv-reaction5-left\"><\/td>\n<td id=\"gmail-m_33083604567874069gmail-componentDiv-reaction5-icon\"><img decoding=\"async\" id=\"gmail-m_33083604567874069gmail-componentDiv-reaction5-icon_img\" src=\"https:\/\/static.ctvnews.ca\/bellmedia\/common\/img\/share\/print-icon.png\" alt=\"\" \/><\/td>\n<td id=\"gmail-m_33083604567874069gmail-componentDiv-reaction5-right\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/td>\n<td>\n<div class=\"gmail-m_33083604567874069gmail-gig-button-container gmail-m_33083604567874069gmail-gig-button-container-count-none gmail-m_33083604567874069gmail-gig-button-container-email gmail-m_33083604567874069gmail-gig-button-container-email-count-none gmail-m_33083604567874069gmail-gig-share-button-container gmail-m_33083604567874069gmail-gig-button-container-horizontal\">\n<div id=\"gmail-m_33083604567874069gmail-componentDiv-reaction6\" class=\"gmail-m_33083604567874069gmail-gig-button gmail-m_33083604567874069gmail-gig-share-button gmail-m_33083604567874069gmail-gig-button-up gmail-m_33083604567874069gmail-gig-button-count-none\" title=\"\">\n<table style=\"height: 47px;\" width=\"177\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td id=\"gmail-m_33083604567874069gmail-componentDiv-reaction6-left\"><\/td>\n<td id=\"gmail-m_33083604567874069gmail-componentDiv-reaction6-icon\"><img decoding=\"async\" id=\"gmail-m_33083604567874069gmail-componentDiv-reaction6-icon_img\" src=\"https:\/\/static.ctvnews.ca\/bellmedia\/common\/img\/share\/email-icon.png\" alt=\"\" \/><\/td>\n<td id=\"gmail-m_33083604567874069gmail-componentDiv-reaction6-right\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<div class=\"gmail-m_33083604567874069gmail-top-tool gmail-m_33083604567874069gmail-gigya-com\"><\/div>\n<\/div>\n<div class=\"gmail-m_33083604567874069gmail-clearfix\">\n<div class=\"gmail-m_33083604567874069gmail-s-data\">\n<div class=\"gmail-m_33083604567874069gmail-prof gmail-m_33083604567874069gmail-bioTeaser gmail-m_33083604567874069gmail-clearfix\"><a href=\"https:\/\/www.ctvnews.ca\/more\/ctvnews-ca-team\/josh-k-elliott-1.2093376\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"gmail-m_33083604567874069gmail-left\" title=\"Josh Elliott\" src=\"https:\/\/www.ctvnews.ca\/polopoly_fs\/1.3429085.1495732173!\/httpImage\/image.jpg_gen\/derivatives\/box_45\/image.jpg\" alt=\"Josh Elliott\" width=\"45\" height=\"45\" \/><\/a><a class=\"gmail-m_33083604567874069gmail-bioLink\" href=\"https:\/\/www.ctvnews.ca\/more\/ctvnews-ca-team\/josh-k-elliott-1.2093376\" target=\"_blank\">Josh K. Elliott<\/a>,\u00a0<span class=\"gmail-m_33083604567874069gmail-bioTitle\">CTVNews.ca<\/span><\/p>\n<p class=\"gmail-m_33083604567874069gmail-socialBio\"><a href=\"https:\/\/twitter.com\/joshkelliott\" target=\"_blank\">@joshkelliott<\/a><\/p>\n<\/div>\n<p><span style=\"font-size: large;\"><span class=\"gmail-m_33083604567874069gmail-date\">Published Monday, January 29, 2018 10:58AM EST\u00a0<\/span><br \/>\n<span class=\"gmail-m_33083604567874069gmail-date\">Last Updated Tuesday, January 30, 2018 7:42AM EST<\/span><\/span><\/div>\n<div class=\"gmail-m_33083604567874069gmail-articleBody\">\n<p><span style=\"font-size: large;\">Some foreign investors, particularly those from China, are taking advantage of Canadian loopholes to become ghost immigrants, according to David Lesperance, a tax and immigration consultant with Lesperance &amp; Associates.<\/span><\/p>\n<p><span style=\"font-size: large;\">Lesperance cites one recent judge\u2019s decision from a lawsuit in which the judge said Chinese millionaire Guoqing Fu bought multiple multi-million-dollar homes in Canada while claiming just $97 in worldwide income on his taxes. The judge\u2019s 600-page ruling in the case was posted online earlier this month.<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cThat was really pushing the edge,\u201d Lesperance told CTV\u2019s Your Morning on Monday. He says the situation would have gone unnoticed if Fu\u2019s family and his partners, the Xia family, had not turned on each other and\u00a0<a href=\"http:\/\/www.courts.gov.bc.ca\/jdb-txt\/sc\/18\/00\/2018BCSC0009.htm\" target=\"_blank\">exposed their activities in court<\/a>.<\/span><\/p>\n<div id=\"gmail-m_33083604567874069gmail-fsk_splitbox_3305_onscreen\" class=\"gmail-m_33083604567874069gmail-fsk_splitbox_3305_onscreen\"><\/div>\n<div class=\"gmail-m_33083604567874069gmail-sideItems\">\n<div class=\"gmail-m_33083604567874069gmail-related\">\n<div class=\"gmail-m_33083604567874069gmail-right-c\">\n<h2><span style=\"font-size: large;\">RELATED LINKS<\/span><\/h2>\n<ul>\n<li class=\"gmail-m_33083604567874069gmail-line\">\n<div class=\"gmail-m_33083604567874069gmail-linkList\"><a class=\"gmail-m_33083604567874069gmail-newWindow\" href=\"https:\/\/www.canada.ca\/en\/immigration-refugees-citizenship\/services\/protect-fraud\/report-fraud.html\" target=\"_blank\"><span style=\"font-size: large;\">Report immigration or citizenship fraud to the CBSA<\/span><\/a><\/div>\n<\/li>\n<\/ul>\n<\/div>\n<div class=\"gmail-m_33083604567874069gmail-other-photos\">\n<h2><span style=\"font-size: large;\">PHOTOS<\/span><\/h2>\n<div class=\"gmail-m_33083604567874069element gmail-m_33083604567874069gmail-teaser\">\n<div class=\"gmail-m_33083604567874069gmail-photo\">\n<div class=\"gmail-m_33083604567874069gmail-viewLarger\"><\/div>\n<p><a class=\"gmail-m_33083604567874069gmail-galleryitem\" title=\"Real Estate\" href=\"https:\/\/www.ctvnews.ca\/polopoly_fs\/1.3753497.1515602126!\/httpImage\/image.jpg_gen\/derivatives\/landscape_960\/image.jpg\" target=\"_blank\"><span style=\"font-size: large;\"><img loading=\"lazy\" decoding=\"async\" title=\"Real Estate\" src=\"https:\/\/www.ctvnews.ca\/polopoly_fs\/1.3753497.1515602126!\/httpImage\/image.jpg_gen\/derivatives\/landscape_225\/image.jpg\" alt=\"Real Estate\" width=\"225\" height=\"127\" \/><\/span><\/a><\/div>\n<\/div>\n<p class=\"gmail-m_33083604567874069gmail-imgText\"><span style=\"font-size: large;\">Canada\u2019s hottest markets have taken steps to curb this practice recently, by imposing foreign buyer taxes, as well as taxes on homes that sit vacant.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><span style=\"font-size: large;\">&#8220;These were two parties&#8230;who fell out and decided to sue each other in civil court,\u201d Lesperance said.<\/span><\/p>\n<p><span style=\"font-size: large;\">The judge\u2019s ruling from the case indicates Fu \u201chad a large and successful business in China,\u201d yet he only claimed \u201ca miniscule worldwide income of $97.11\u201d on his Canadian income tax return, despite spending millions on three different homes. \u201cThis was an incredible assertion given the fact he owns one of the top 10 textile manufacturing and distribution companies, based in one of the biggest textile manufacturing centres of China,\u201d the judge\u2019s decision said.<\/span><\/p>\n<p><span style=\"font-size: large;\">Lesperance says wealthy foreigners are using these tactics to game the Canadian system because no one is investigating to verify that they\u2019re actually physically living in Canada. He says the Canadian immigration system isn\u2019t really looking at these people, and that the Canada Revenue Agency isn\u2019t focused on them because it lacks the resources to do so.<\/span><\/p>\n<p><span style=\"font-size: large;\">A spokesperson for the CRA said it works with provincial and municipal governments to enforce local tax and principal residency laws.<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cThe government\u2026 is actively engaged in monitoring and addressing the overall health and stability of the housing market and financial system in Canada,\u201d a spokesperson for the CRA told CTVNews.ca in a statement.<\/span><\/p>\n<p><span style=\"font-size: large;\">The CRA says it recovered $117.9 million by conducting 4,471\u00a0<a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/programs\/about-canada-revenue-agency-cra\/compliance\/does-canada-revenue-agency-address-non-compliance-real-estate-sector.html\" target=\"_blank\">audits<\/a>\u00a0from April 2015 to September 2017 in B.C. It also recovered $331.2 million through 21,280 audits conducted over that same period in Ontario. The highest penalty was almost $2.5 million, according to the agency\u2019s website.<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cIt is important to note that the mandate of the CRA is to administer the tax legislation provided by the Department of Finance,\u201d the CRA spokesperson said, adding that issues of immigration fall under the mandate of Immigration, Refugees and Citizenship Canada.<\/span><\/p>\n<p><span style=\"font-size: large;\">An IRCC spokesperson said the department is continually working to improve its systems to detect fraud.<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cThe government of Canada takes any kind of citizenship or immigration fraud seriously,\u201d a spokesperson told CTVNews.ca in a statement. The spokesperson added that the IRCC works with the RCMP and the Canada Border Services agency to enforce the Immigration and Refugee Protection Act and its regulations, \u201cincluding allegations of fraud.\u201d<\/span><\/p>\n<p><span style=\"font-size: large;\">The IRCC points out that the CBSA is responsible for investigating suspected immigration fraud.<\/span><\/p>\n<p><span style=\"font-size: large;\">The CBSA has set up a\u00a0<a href=\"https:\/\/www.canada.ca\/en\/immigration-refugees-citizenship\/services\/protect-fraud\/report-fraud.html\" target=\"_blank\">hotline<\/a>\u00a0for reporting immigration or citizenship fraud.<\/span><\/p>\n<p><span style=\"font-size: large;\">Lesperance suggests foreign buyers are pulling off these schemes in Toronto, Vancouver and Montreal, where their homes are sitting empty despite high demand for housing in the area.<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cWhile they are getting the benefits of Canadian permanent residence and citizenship, they are, like this gentleman, not contributing to the tax base,\u201d Lesperance said. \u201cThey\u2019re driving up house prices, they are denuding neighbourhoods of vibrancy and customers for local restaurants and businesses, and they\u2019re not contributing to the tax base.\u201d<\/span><\/p>\n<p><span style=\"font-size: large;\">Canada\u2019s hottest markets have taken steps to curb this practice recently, by imposing foreign buyer taxes, as well as taxes on homes that sit vacant. Numbers released by Ontario in December show foreign home buying was down due to higher taxes in the latter part of the year.<\/span><\/p>\n<p><span style=\"font-size: large;\">Lesperance suggests the solution is for Revenue Canada to start cracking down on these individuals by auditing them \u2013 a process that is much easier to do now than it was 20 years ago because of social media and the internet.<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cIf they do that they will send a shock through this community,\u201d he said. He suggests a wave of audits would force these investors to decide between paying their taxes in Canada or abandoning their pursuit of citizenship altogether.<\/span><\/p>\n<p><span style=\"font-size: large;\">Lesperance says this has been going on at least since the 1990s, when someone informed him about it by handing him what he calls a \u201cscoundrel\u2019s guide to circumventing the Immigration and Citizenship Act.\u201d<\/span><\/p>\n<p><span style=\"font-size: large;\">Lesperance says the tactic is not isolated to one particular group.<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cIt\u2019s not endemic to one particular group of immigrants,\u201d Lesperance said. \u201cIt\u2019s just endemic to immigrants who look at the situation and say, \u2018It\u2019s easy to cheat, I get all the benefits, the costs are low and they\u2019re not chasing me.\u2019<\/span><\/p>\n<p><span style=\"font-size: large;\">\u201cAnd at the end of the day, you get citizenship.\u201d<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Wealthy &#8216;ghost immigrants&#8217; using empty homes to claim citizenship: tax expert &#8216;Ghost immigrants&#8217; faking a presence in Canada Tax and immigration specialist David Lesperance explains how so-called &#8216;ghost immigrants&#8217; circumvent Canada&#8217;s immigration system. Josh K. Elliott,\u00a0CTVNews.ca @joshkelliott Published Monday, January 29, 2018 10:58AM EST\u00a0 Last Updated Tuesday, January 30, 2018 7:42AM EST Some foreign investors, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[635,899,900,901],"_links":{"self":[{"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=\/wp\/v2\/posts\/1162"}],"collection":[{"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1162"}],"version-history":[{"count":1,"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=\/wp\/v2\/posts\/1162\/revisions"}],"predecessor-version":[{"id":1163,"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=\/wp\/v2\/posts\/1162\/revisions\/1163"}],"wp:attachment":[{"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadafirst.nfshost.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}