B.C. man fined $2M for tax evasion after flipping 14 homes in four years

A British Columbia man who flipped 14 properties in just four years has been hit with a $2 million fine for tax evasion. Balkar Bhullar, a Richmond resident, was convicted of failing to report nearly $7.5 million in income from 2011 to 2014. The Canada Revenue Agency (CRA) announced that Bhullar was sentenced on December 19 to a conditional sentence of two years less a day, along with a fine of approximately $2.15 million, which matches the amount of unpaid federal taxes. Bhullar had pleaded guilty in August 2023 to one count of tax evasion, related to undeclared earnings from assignment fees on the 14 properties he flipped.

Assignment fees involve transferring a property purchase contract from one buyer to another. The CRA has highlighted its ongoing efforts to combat tax fraud in the real estate sector, which includes cracking down on property flippers.

In response to concerns about speculation in the housing market, a new home-flipping tax will be implemented in B.C. starting January 1. This tax, which could reach up to 20%, will apply to homeowners who sell a property within two years of buying it. According to the Ministry of Finance, around 4,000 properties are expected to be affected by the tax in 2025, with all the revenue directed toward housing programs.

B.C. Finance Minister Brenda Bailey stated that the tax is designed to help increase the supply of affordable homes by discouraging speculative investors looking for quick profits. However, the B.C. Real Estate Association has raised concerns, warning that the tax may prompt sellers to delay listing their homes, which could reduce the availability of resale properties and exacerbate housing market shortages.