The Manitoba government said it wants to close a tax loophole that could net millions of dollars a year.
The land transfer tax applies when someone buys a property, and it is then registered at the land titles office. For homeowners, it can add thousands of dollars to the purchase of a new home.
But Finance Minister Adrien Sala said in some cases, businesses are able to avoid the tax.
“Our government is going to look to close a tax loophole that was raised to our attention during budget consultations,” said Sala.
He notes the province is doing a review of a type of corporate ownership structure, where land and corporations may be changing hands without the need to go through the registry system.
“We want to ensure that as properties are changing hands between commercial owners, that we see that tax fairness and that those taxes are paid.”
Sala estimates the province could be missing out on up to $10 million a year in tax revenue.
The province said in the 2025 budget that it is considering legislative changes to end the exemption.
Sala said the review will take place over the next year.
