Supplier Name: The Strategic Counsel
Contract Number: CW2268085
Contract Value: $93,899.61
Contract Award Date: 2023-01-13
Delivery Date: May 26, 2023
Registration Number: POR-109-22
For more information on this report, please contact Canada Revenue Agency at:
Ce rapport est aussi disponible en français.
Prepared for: Canada Revenue Agency
Supplier Name: The Strategic Counsel
May 2023
This public opinion research report presents the findings from 12 focus groups and 20 in-depth interviews conducted by The Strategic Counsel on behalf of Canada Revenue Agency. The study was conducted with 85 individual taxpayers and 20 real estate professionals between February 21st and March 20th, 2023.
Cette publication est aussi disponible en français sous le titre: Perceptions des obligations fiscales et de l’inobservation connexe dans le secteur immobilier : Recherche qualitative.
This publication may be reproduced for non-commercial purposes only. Prior written permission must be obtained from Canada Revenue Agency. For more information on this report, please contact Canada Revenue Agency at cra-arc.media@cra-arc.gc.ca.
Catalogue Number: Rv4-185/2023E-PDF
International Standard Book Number (ISBN): 978-0-660-49432-6
Related Publication (Registration Number: POR-109-22)
Catalogue Number: Rv4-185/2023F-PDF (Final Report, French)
International Standard Book Number (ISBN): 978-0-660-49433-3 (Final Report, French)
© His Majesty the King in Right of Canada, 2023
The real estate landscape has become more complex in recent years with a perceived lack of housing affordability and other potential barriers to entry into the real estate market occurring with increasing frequency. As such, the Government of Canada is committed to addressing the issue of housing affordability for Canadians. Factors affecting affordability in the housing market have included price increases, high volumes of transactions, investor participation, and rising inflation. These factors have also contributed to increased opportunities for tax non-compliance.
The Canada Revenue Agency (CRA) utilizes a combination of tools and data to detect and address tax non-compliance by taxpayers across all sectors, including real estate. Specific to real estate, the CRA employs risk-appropriate interventions that include outreach and communications, targeted letters, a leads program, and audits. Through audits, the CRA has identified the following key areas of concern related to the real estate sector:
It is against this backdrop that the Minister of National Revenue has been mandated to “strengthen the work of the CRA to improve its capacity to audit real estate transactions”.
The CRA is working to ensure that taxpayers involved in the disposition of real estate properties are informed of their tax rights and obligations. It is also recognized that individuals are more likely than other taxpayer segments to have limited awareness on this matter. As such, it has been the CRA’s experience that education and outreach efforts targeting individuals (especially those who do not fully understand their obligations) have been influential in impacting their behaviours. Additionally, this approach has been successful in positioning these individuals to be less likely to miss out on deductions, tax credits, rebates, or be subject to unnecessary penalty and interest charges.
The purpose of this research is to collect opinion-based information on existing risks related to the real estate sector. This information is derived from the perceptions of individual taxpayers who have recently participated in the real estate market, as well as professionals in the general business of real estate, property management, and renovations.
The objectives of this study include:
The results of this research will be used in the development of strategies targeted towards the real estate sector as well as to inform related public communication campaigns. This research will complement traditional data sources and, in the event it leads to new insights, may inform risk assessment and support targeted compliance activities.
A total of 12 focus groups comprised of individual taxpayers and 20 in-depth interviews with real estate professionals were conducted between February 21st and March 20th, 2023. The groups and interviews were segmented across five regions – Atlantic Canada, Quebec, Ontario, the Prairies, and British Columbia, with additional segmentation by city to ensure representation of key real estate markets.
Participants were recruited in their official language of choice using either a random digit dialing (RDD) or hybrid telephone and online approach. In total, 116 participants were recruited and 105 participated. All groups and interviews were conducted online via Zoom, with focus groups lasting approximately 90 minutes in length and interviews 45 minutes in length. Individual taxpayers received an honorarium of $125 for their time and professionals working in real estate received $200. A total of 10 focus groups and 17 interviews were conducted in English. All focus groups and interviews in Quebec were conducted in French (2 focus groups and 3 interviews).
Qualitative research is exploratory in nature and involves the collection, analysis and interpretation of data that is not easily reduced to numbers. These types of studies yield valuable and rich insights into the opinions of specific target audiences as reflected by their own ‘voices’. However, the semi-structured nature of focus group discussions and interviews, combined with the limited number of participants engaged in the research, means that findings should be considered directional in nature. They should not be considered statistically projectable to the broader population of individual taxpayers or professionals working in the real estate sector across Canada.
Most individual taxpayers utilize the services of accountants when it comes to filing their taxes and have low awareness of their tax obligations related to real estate transactions.
Participants were generally unaware of the types of activities that might be considered non-compliant. There was, however, a belief that non-compliance in real estate is prevalent throughout Canada and is likely more widespread than many are aware of. Views among individual taxpayers were mixed as to whether this type of behaviour was thought to be intentional or unintentional. Meanwhile, professionals working in the real estate sector believed the majority of non-compliance to be intentional in nature.
There was a perception that the COVID-19 pandemic and recent interest rate increases by the Bank of Canada had served to disrupt real estate markets and had negatively impacted the ability of Canadians to correctly file real estate transactions in recent years.
Awareness of fraudulent activity occurring in the real estate sector was low among individual taxpayers, but more well known among professionals. While most viewed this type of activity as criminal, many did not make a clear connection between fraudulent activity and non-compliance vis-à-vis tax implications.
Key motivating factors influencing participation in non-compliance in the real estate sector were price increases in the market value of homes and record profits on the sale of properties.
Almost all viewed the CRA’s role in tracking non-compliant activity in the real estate sector and increasing efforts to strengthen compliance as important. This was seen as an effective way of ensuring greater accountability and fairness across the tax system and as a way to avoid a heavier burden being placed on those taxpayers who were fully compliant.
A multi-channel strategy, using online and traditional approaches to reach people at points in time where they are undertaking real estate transactions, was seen as the most effective way for CRA to share information with individual taxpayers. Among professionals, it was felt that the best way to reach those in their industry was through professional or industry associations. Several also suggested that this information should be incorporated as part of their continuing education and the license renewal process.
Participants tended to favour statements/information from the CRA that are clear and easy to understand, provide taxpayers with new information, and are applicable to a wide audience.
The contract value was $93,899.61 including any applicable taxes.
MORE INFORMATION Supplier Name: The Strategic Counsel PWGSC Contract Number: CW2268085 Contract Award Date: 2023-01-13 Contract Budget: $93,899.61 To obtain more information on this study, please e-mail cra-arc.media@cra-arc.gc.ca. |
Statement of Political Neutrality
I hereby certify as Senior Officer of The Strategic Counsel that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research. Specifically, the deliverables do not include information on electoral voting intentions, political party preferences, standings with the electorate or ratings of the performance of a political party or its leaders.
Signed: ___________________________________
Donna Nixon, Partner
At the outset of each discussion individual taxpayers were asked to identify (from a list) the types of real-estate transactions that they had undertaken over the past four years. Across all groups the most cited transactions were the sale of homes or properties, with at least half of the participants in each group reporting having done this in the past four years. Other frequently mentioned transactions included the acquisition of a second residential property (which many had since rented out or planned to do so in the future) and making substantial renovations to a residential property. Fewer reported severing a plot of land into two or more lots to build residential properties, constructing a new residential property on owned land (to rent out), or purchasing a newly substantially renovated home.
Awareness of tax implications related to these types of real estate transactions was low to moderate among participants. The most often cited tax implications (from most to least mentioned) were:
Although a provincial/territorial requirement, some also discussed the expense of land and/or property transfer tax as an additional implication of purchasing a new property.
Overall, awareness of the tax implications related to real estate transactions among taxpayers was higher among those residing in larger markets such as the Greater Toronto Area (GTA), Greater Montreal Area (GMA), and Greater Vancouver Area (GVA).
Those in the groups comprised of professionals working in the real estate sector demonstrated significantly more knowledge on real estate tax filings compared to the average individual taxpayer. This was particularly evident among participants in ‘hot’ real estate markets (such as the GTA and GVA) and those who had worked in the real estate sector for a long period of time (i.e., 10 or more years). Many were of the view that it was important for real estate professionals to be knowledgeable of these implications, even if it was not their direct role or responsibility to communicate this information to their clients.
Most individual taxpayers believed that they would face difficulties in preparing and filing file tax returns involving real estate transactions without the assistance of a professional. A large number indicated having previously relied upon an accountant to assist them with this and felt that doing so had greatly simplified the tax reporting process. Participants identified numerous reasons as to why they opted to use an accountant. These included (from most to least mentioned):
Some expressed that even if they would typically file their annual tax returns themselves, in years where they had engaged in more complex transactions (such as those related to real estate) they would likely turn to a professional for assistance. While still likely to work with an accountant, a few were of the view that it was important for them to also have a strong understanding as to what their tax obligations are when undertaking such transactions.
A few participants felt knowledgeable enough to file tax returns involving real estate transactions on their own. Among this group, a number of participants reported using tax software (such as TurboTax), which they felt had been effective at prompting them to fill out all the necessary information related to their transaction.
Asked what the CRA could do to make it easier for Canadians to file tax returns related to real estate, participants suggested using more plain and accessible language in its communications and on tax forms, as well as making the CRA website easier to navigate.
As previously mentioned, almost all individual taxpayers reported relying on their accountants as a primary source for advice and/or assistance when it came to filing their tax returns for real estate transactions. Additionally, some mentioned having worked with lawyers, notaries, mortgage brokers, and financial advisors to assist them in this process. Only a few, however, indicated having relied upon their real estate agent for information related to their tax obligations. Outside of professionals, a small number also reported having utilized the CRA website and other online sources to obtain related information.
Asked if they felt that real estate agents were as knowledgeable as accountants when it came to real estate tax filings, most did not believe this to be the case. Real estate agents were generally perceived as having only a basic understanding regarding the taxation of real estate transactions, while accountants were viewed as having vastly more knowledge in this realm.
Discussing whether professionals proactively provide tax-related advice or assistance to their clients, the feedback was mixed based on the occupation of the professional. While tax intermediaries often provided their clients with advice, particularly during tax season, most others (and real estate agents in particular) indicated that they would be unlikely to provide this type of guidance to their clients. Most real estate agents felt that it was not their role or responsibility to provide this information and many mentioned that they were often discouraged from doing so by their professional associations. Several also expressed concerns regarding the potential risk and liability they might incur by providing tax-related advice to clients. Instead, most professionals commented that they would likely refer their clients directly to an accountant for these types of questions.
The types of questions typically asked of professionals when it comes to real estate transactions were primarily related to tax implications in terms of if there would be a requirement to pay capital gains or sales tax, what specifically is considered or would qualify as capital gains, how any profits would factor into their income, and ultimately how much they would have to pay. These questions were said to be more commonly asked by individuals who were undertaking their first real estate transaction of this kind. In terms of timing, questions were generally asked by clients to professionals prior to any transaction taking place, however they were less top-of-mind for clients in the pre-planning stages then when they got closer to undertaking a transaction.
Focus group participants as well as interviewees were presented with the following information related to non-compliance of tax filing in the real estate sector:
The real estate landscape has become more complex over recent years and CRA wants to ensure that taxpayers involved in real estate transactions are informed about their tax rights and obligations. By filing their tax returns correctly, taxpayers would be better positioned to not miss out on eligible deductions, tax credits or rebates nor would they pay unnecessary penalties or interest charges. However, recent trends in the market could lead to situations in which real estate transactions may be underreported or unreported by taxpayers. The CRA refers to these as non-compliant.
Asked what activities related to real estate transactions they believed might fall into non-compliance participants provided a range of responses. Many were of the impression that a large number of property owners were either not declaring or under-declaring the income they received from their rental properties. It was believed that this was primarily done in situations where tenants paid their rent in cash, as well as among homeowners who rented their properties out as short-term rentals (through platforms such Airbnb or Vrbo). A few had also heard accounts of landlords over-reporting rental related expenses, for example by claiming renovation or utility expenses that are not directly related to their rental property.
Another potential instance of non-compliance cited by participants was not reporting or under-reporting the sale price of a property to avoid paying or reduce the amount of capital gains taxes they owed. Participants identified various ways in which they believed this was occurring, including through private sales and transactions and those transactions which were primarily cash based. Others raised the possibility of errors being made related to claiming the principal residence exemption. A few recalled hearing accounts of homeowners whose spouses had claimed secondary properties as their primary residences to avoid paying capital gains upon the sale of these properties. There were also a few perceived ‘grey areas’ noted by participants around capital gains exemptions. These included a lack of clarity related to the length of time required for a property to be deemed a primary residence and the rules regarding whom specifically was required to live in the residence for it to qualify.
Other potential acts of non-compliance suggested by a small number of participants included:
Awareness of non-compliant behaviour was notably higher among professionals working in the real estate sector. Among these participants, a range of potential issues were mentioned. These included:
Many believed that these types of non-compliant behaviours were occurring with increasing frequency and that this had become a widespread issue throughout Canada. This view was widely held by those residing in larger urban centres such as the GTA and GVA. On balance, those living in Atlantic Canada, Quebec, and in the Prairies felt that non-compliant behaviour was less common in their regions compared to other parts of the country.
A similar pattern emerged among participants regarding whether they thought that these non-compliant behaviours were being carried out intentionally. While views were mixed overall, those living in larger centres (such as the GTA and GVA) were more likely to view this behaviour as intentional compared to those residing in more mid-sized centres or in less active real estate markets.
Participants largely felt that those who inadvertently engaged in non-compliant activities generally lacked awareness of their tax rights and obligations and expected that they were likely filing their taxes on their own without any outside help from a tax intermediary or other financial advisor. It was also suggested that several recent changes to the tax laws related to real estate transactions might be contributing to a higher degree of unintentional non-compliance. The following groups were identified by participants as being more likely to undertake this behaviour unintentionally:
While individual taxpayers largely believed that the main driver behind intentional non-compliance was to avoid a tax burden, they held two different opinions as to why Canadians were undertaking this behaviour. The first was primarily related to greed. It was felt that many individuals were willing to take on the risks of being non-compliant due to them having done so before with little to no repercussions. It was expressed that these individuals would likely continue to engage in non-compliant behaviours until they were penalized. Unprompted, participants identified several specific subgroups of the population that they perceived as more likely to be intentionally non-compliant. These included:
The second reason believed to be motivating non-compliance was that many Canadians, particularly in recent years, were finding themselves facing greater financial pressures. It was expressed that difficulties in making ends meet financially might be driving Canadians to take increased risks when it came to their taxes. This motivator was generally viewed as more acceptable by participants as these individuals were thought to be engaging in non-compliant behaviours out of desperation rather than greed.
Compared to individual taxpayers, those working in the real estate industry believed that non-compliant behaviour was occurring quite frequently at present. Those working in larger markets such as the GTA and GVA felt that many in their communities were engaging in acts of non-compliance. Professionals were also more likely to view this behaviour as being undertaken intentionally and felt that it was particularly common among larger businesses, developers, and contractors who are engaged in the building and/or flipping of homes as a part of their regular business practices.
Participants largely were of the view that most Canadians were unaware of their tax obligations with respect to real estate transactions. While it was believed that a sizeable percentage of Canadians (and especially those who had previous experience with real estate transactions) had some understanding of their basic tax obligations, it was thought that most did not have detailed knowledge of the tax system and how it applies to real estate. It was widely seen as important for Canadians to have a basic knowledge of their tax obligations. Several suggested that this could be facilitated by the CRA through the development of additional resources to help educate Canadians on this aspect of preparing and filing their taxes. Many also felt that it was important for Canadians to continue to work with experts, such as tax intermediaries, to ensure that their annual taxes were being filed accurately.
Professionals working in the real-estate sector were also asked whether they believed that Canadians were generally aware of their tax obligations for real estate transactions. Almost all were of the opinion that Canadians did not have a strong or full understanding of what their tax rights and obligations are.
Most individual taxpayers and almost all professionals believed that there is significant fraudulent activity happening in the real estate sector. In terms of what types of scams or fraudulent activity were seen as most common, many were unsure and unable to state any specific types. Some believed these activities to be more criminal in nature and generally larger in scale.
While most were unaware of the types of individuals perpetrating these scams, with the exception of those involved in organized crime, some felt that there were certain groups who may be more susceptible to scams. Participants suggested that those who could fall victim would likely be individuals with lower educational attainment that may not have the ability to fully comprehend or understand the complexities of tax legislation. Additionally, participants suggested that individuals who may not be as aware of their tax obligations may also be particularly vulnerable. This view was expressed more often by participants residing in Montreal, Calgary, and Edmonton.
Across all groups, it was believed that the COVID-19 pandemic was a contributing factor that has led to an increased amount of fraud and non-compliance in the sector. Reasons for this were similar to other responses throughout the discussion, as participants believed that the COVID-19 pandemic had negatively impacted the financial situation of many individuals and families, which they felt could drive some to be more likely to commit fraud.
When asked if fraudulent and non-compliant activity in the real estate sector is making housing affordability a challenge for Canadians almost all individual taxpayers and professionals did not think so and could not make any sort of connection between the two ideas. Instead, participants provided a multitude of other factors which they believed were more likely to be contributing to making housing affordability a challenge for Canadians. These included “supply and demand,” “international buyers,” “companies purchasing properties,” and “landlords evicting tenants, renovating the property and raising the rent.”
Following this top-of-mind discussion, individual taxpayers and professionals were then asked if they had heard of three specific types of fraud: foreclosure fraud; title fraud; and mortgage fraud. If participants were unaware of these types of fraud by name, moderators then shared the following definitions and examples to clarify and further gauge awareness.
By far, title fraud was the most well-known amongst participants, with many indicating that they had heard of it. Compared to the other types of fraud, title fraud was cited as more well known because it had been the subject of many recent news stories, in a documentary, in TikTok videos and one participant stated they knew a person who fell victim to this.
When it came to mortgage fraud, most stated that they had heard of it, however only a small number could correctly explain or provide an accurate example unprompted.
With respect to foreclosure fraud, most individual taxpayers and professionals admitted to having no awareness of it. There were a few who first claimed to know what it was but were unable to provide an accurate definition when asked. Hearing the definition and the example provided by the moderator did not prompt participants to further recall this type of fraud.
It is important to note that no Francophone participants or interviewees could provide a guess as to what a fraud “en matière de forclusion” was. While low awareness of this type of fraud was similar to what was heard among English-speaking participants and professionals, that greater issue was the French term itself. To their recollection, no one had ever heard the word “forclusion”.
After having discussed some of the behaviours and miscalculations that have been occurring related to non-compliance, participants were asked to select from the list below, which factors or drivers they felt would most influence people to undertake this behaviour.
Individual taxpayers were asked to complete a poll where they could select up to (but no more than) three options. Alternatively, if participants felt there was another factor that was not listed, they were provided the opportunity select the ‘other’ option. The moderator then reviewed participants selections and probed around why they chose the factors they did. These poll results are included in section D of the Appendix at the end of the report. During the interviews, professionals were shown the list on screen and asked to provide their responses aloud to the interviewer.
The factors/drivers provided to participants included:
By far, price increases in the market value of homes and record profits in the sale of properties were the top two motivating factors believed to have influenced participation in non-compliance in the real estate sector in recent years.
There was a perception that some Canadians were determined to take advantage of a recent rise in house prices. However, it was believed that those who had done so may not have fully understood some of the tax implications related to this. For example, an individual may have decided to sell a property at higher prices without realizing the implications that the higher price would have in terms of the gains they are required to pay. When it came to record profits, participants perspectives were slightly different. They spoke about the opportunity that some Canadians saw in terms of ‘easy money’ to be made. Participants felt that once this money was made, taxpayers felt ownership over it and wanted to keep as much as possible for themselves. Many participants simply referred to the motivating factor here as ‘greed’.
A secondary motivator was related to affordability and inflation. It was discussed that increases to cost of living and inflation (in part due to COVID-19), have put financial pressures on many Canadians. It was felt that individuals in this situation likely feel they need to do what they can to improve their own financial situation, which in some case meant putting their basic needs before considering paying real estate related taxes.
A lack awareness or knowledge about one’s tax obligations was also seen by many as a factor for non-compliance occurring. This was viewed as the main reason for unintentional compliance. Participants generally felt that ‘people don’t know what they don’t know’. Some specifically indicated younger Canadians and newcomers as key groups for which further education about tax obligations could be provided to.
An overall increase in the number of real estate transactions occurring was not seen as motivating compared to other drivers previously noted.
Other motivators, which arose unprompted, included:
Discussing whether one typically keeps themselves updated on current real estate market trends and information, a larger number of individual taxpayers indicated doing so, compared to those who did not. For several, real estate was viewed as an important component of their financial situation and felt this was an important area to remain up to date on. Other reasons for researching real estate trends included being currently involved in carrying out real estate transactions and/or expecting to do so in the future, as well as finding information to assist their children or other family members who may be considering purchasing a home. Almost all of those working as professionals in the real estate sector indicated that they followed the real estate market closely and believed that this was important for them to do as part of their careers. Asked where they would typically find this information, participants reported encountering it through news outlets (such as CBC and CTV), via social media platforms (including Facebook and Twitter), online websites (such as Condos.ca), and by word of mouth from friends, family, and colleagues. Several also indicated receiving this type of information through correspondence from real estate agents. Those working in real estate also mentioned regularly receiving this information through their employer or through professional and/or industry associations they belonged to.
Asked whether they felt there were any specific trends or forces in the real estate market that may have impacted the ability of Canadians to correctly file returns related to real-estate transactions in the past five years, participants put forward a range of responses:
Questioned whether additional supports for homeowners such as increases to the First-Time Home Buyers’ Tax Credit (HBTC) and the introduction of the Home Accessibility Tax Credit (HATC) had increased non-complaint behaviour, most felt these programs had instead served to decrease this behaviour. It was thought that with these additional supports being made available by the federal government that homeowners were now incentivized to a greater extent to be compliant and up to date on filing their taxes. A few participants felt that while some individuals may be underreporting their income to qualify for these credits, this type of behaviour was not generally thought to be widespread.
Asked to share their views on the importance of tracking non-compliance in the real estate sector and their understanding as to what CRA was doing in this regard, most focus group participants felt that it was important for the Government of Canada and CRA track and investigate these activities. This view was largely held by participants in all regions and markets, with the exception of those in Atlantic Canada with homes valued at less than $500,000, who were generally indifferent towards this issue.
Several supported a stronger focus from the CRA towards uncovering non-compliance, believing this would help to ensure greater accountability and fairness across the taxpayer base. By contrast, others were of the view that the CRA should target its resources more towards those engaged in significant real estate transactions in terms of the dollar value associated with the sale of or income generated from a property. Many, however, qualified their opinion by adding that the CRA should focus primarily on those who own multiple properties and/or have undertaken multiple real estate transactions within a short time period, rather than average homeowners.
It was widely felt that real estate investors and/or those undertaking real estate transactions as a source of significant income generation were likely motivated to not report or underreport their income to a greater extent than individual homeowners. At the same time, however, a few questioned whether the CRA was truly committed to addressing intentional non-compliance by real estate investors considering how widespread they perceived this behaviour to be. A few participants held the view that the CRA was pursing the wrong targets and was focused more on targeting smaller organizations or individual homeowners, rather than larger organizations, due to the amount of effort/time these larger files could take to address.
Participants offered numerous reasons as to why they felt it was important to address non-compliance in the real estate sector. These included:
While most felt that it was important for the CRA to identify and address non-compliance, a few residing in Canada’s more active housing markets were somewhat less supportive. These participants were of the view that the Government of Canada should look elsewhere to increase its tax revenues rather than focusing on individual taxpayers who they perceived as taking these actions out of necessity to improve their financial situation and continue to make ends meet. It was expressed that there was few tax ‘loopholes’ left through which average Canadians could benefit. Moreover, some perceived the current tax system to be imbalanced, believing it provided numerous avenues for major corporations to reduce their tax burden while individual taxpayers (with the exception of the wealthy), are unable to do so.
In interviews conducted with professionals working directly or indirectly in the real estate sector, comments regarding the importance of addressing non-compliance in the real estate sector aligned with those offered by focus group participants. Most professionals believed that it was important to address non-compliant behaviours, citing fairness as an issue and the negative impacts non-payers or non-compliant taxpayers have on Canadian communities, society, and the country as a whole. Many also saw tax compliance as a basic responsibility and believed that those who avoided their obligations placed a heavier financial burden on those taxpayers who are fully compliant. At the same time, however, some questioned the extent to which the Government of Canada should prioritize this issue given the wide range of other issues requiring its attention. Some questioned whether a cost-benefit analysis would be able to justify the CRA devoting greater resources and attention towards addressing this issue.
Several professionals were unconvinced that there was a strong rationale for avidly pursuing non-compliance among individual real estate investors, believing that any inaccuracies in reporting were likely unintentional, infrequent in nature, and ultimately would be insignificant from the standpoint of the overall revenue lost by the Government of Canada. Others felt that a targeted focus on high-net-worth individuals would likely be more effective. Several, however, also expressed concerns that non-compliance, if left unaddressed, would exacerbate issues related to housing affordability and adversely impact younger generations of taxpayers and prospective homeowners.
A few professionals also expressed concerns that placing a greater focus on addressing non-compliance would increase pressure on individual taxpayers to engage the services of accountants and other tax experts to ensure they are reporting accurately to CRA. It was thought that this would likely be costly, especially for those individuals who typically prepare and file their tax returns themselves and/or utilize online tax services or tax software. These individuals underscored the need for the CRA to flag important questions regarding real estate transactions that taxpayers should be aware of when completing their tax returns. Others wanted to ensure that however the CRA decided to address this issue, it would do so with a sense of compassion towards taxpayers, especially those who may not have adequate knowledge of the Canadian tax system and may be facing multiple competing financial pressures.
Very few were aware of any specific activities currently being undertaken by the CRA to address non-compliance in the real estate sector. Among those who reported having some awareness of recent initiatives from the CRA, the following actions and announcements were mentioned:
Participants were informed that the CRA undertakes education and outreach programs, letter campaigns geared towards specific audiences, gathers leads, and conducts audits to help address non-compliance. When asked which of these actions they felt would have the most impact, there was a strong consensus among participants that a combination of education and audits would be most effective. Participants were of the view that education initiatives that focused on improving awareness and knowledge of tax obligations in particular would have a positive impact, especially for those who may lack the necessary knowledge to fully understand the tax implications of various real estate transactions. Several remarked that such efforts should be undertaken by CRA with an aim to being supportive and helpful rather than focusing on the financial consequences (e.g., penalties) of mis-reporting or non-reporting. A few also stressed the importance of directing educational outreach to younger Canadians and new arrivals who may be more vulnerable to fraudulent behaviours as well as less knowledgeable in general of Canada’s tax system. Some also believed that CRA should emphasize the links between tax compliance and economic growth, particularly focusing on the benefits of taxes to the broader economy.
Audits, accompanied by interests and/or penalties, were seen by many participants, including tax intermediaries and other professionals, to be a crucial way of targeting those who are intentionally non-compliant. This was felt to be especially important for those who had engaged in non-compliant behaviour on multiple occasions. Most felt that education alone would not be effective for these individuals. At the same time, however, some expressed concerns that being overly focused on audits and enforcement may not be perceived positively by some Canadians. A number expressed the opinion that the CRA would likely need to employ a variety of tactics given that some taxpayers would respond more positively to education and information initiatives, while others would only adjust their behaviours in response to the prospect of facing more punitive measures.
A number commented on other approaches the CRA could take to address issues of non-compliance, including the establishment of tiplines and letter campaigns targeted towards those thought to be participating in non-compliant types of activities.
Among the group of professional real estate agents, developers, tax intermediaries, and others who were interviewed as part of this study, several were unconvinced that a leads program would be viable or generate any useful feedback.
Several participants in Atlantic Canada noted that any CRA initiatives to counter non-compliance in the real estate sector should also ensure that CRA staff are available to address taxpayers’ questions and concerns. It was felt that it was often difficult to reach a CRA representative to discuss these issues.
While most were of the view that the CRA should be doing more to address issues of non-compliance in the real estate sector, a few were more unsure. Some remarked that they had not seen much information on this topic and were uncertain as to the extent of this issue. Among these participants there was a desire for the CRA to share information on the size and scale of non-compliance and the effectiveness of its outreach efforts thus far.
Some participants took the opportunity at this point in the discussion to underscore that the CRA and the Government of Canada should, in their view, be focusing on other priorities. It was their view that other issues in the real estate sector, combined with inflationary pressures and the rising cost of living, were causing volatility in housing prices and mortgage rates. It was thought that this represented a greater priority in terms of protecting Canadians and ensuring that households would continue to be able to make ends meet.
A few professionals who worked in the real estate sector shared the opinion that reducing red tape and making it easier for taxpayers to complete their tax returns and get assistance from the CRA when needed would also improve overall levels of compliance.
Participants also discussed what they felt would be the most effective methods for the CRA to communicate and share tax-related information regarding non-compliance in the real estate sector. A variety of channels were suggested by individual taxpayers. These included:
Other suggestions as to how to best communicate this information included seminars or workshops offered by CRA and booths at trade or home shows. Participants generally discouraged the use of email and telephone to communicate this type of information due to mistrust stemming from the prevalence of email and phone scams.
A number felt that the CRA could be more proactive in providing information related to tax obligations in real estate and that the CRA has a responsibility to inform Canadians regarding how to assist in decrease non-compliance. It was of particular importance to many that the CRA develop ways to improve its communications of new policies and changes to existing tax legislation.
Asked to share their perspectives regarding the best ways for CRA to share tax-related information with professionals to help inform clients of their tax rights and obligations, a wide range of channels were suggested by those working in the real estate industry. These included:
Contrary to individual taxpayers, professionals generally discouraged the use of letter mail to disseminate information as it was thought that these types of communications were often overlooked or discarded.
When asked how the CRA could reach out to and educate people undertaking non-compliant behaviours in the real estate sector, many mentioned including some form of a pamphlet accompanying with regularly scheduled mail (such as property tax bills). It was noted that these communications could be friendly in nature and positioned as a ‘did you know?’ rather than as a firm instruction. Participants felt that it was important for the CRA to be viewed as helpful and willing to provide the tools to help taxpayers be compliant. Additionally, participants expressed a need for information to be communicated in easy-to-understand language for those not familiar with their tax obligations. Lastly, as with individual taxpayers, professionals noted that the information needed to be distributed by a legitimate source given the prevalence of scams.
Individual taxpayers who participated in the focus groups were also presented with a series of four different statements and asked to share their perceptions of each.
Note to Reader: The statements were rotated for each group to eliminate any ordering bias in the responses of participants. After the first four groups, statements 1 and 4 were modified to help improve participant’s understanding of the statement. As such, results for these statements are only reported for groups 5-12 inclusive. More information on this is included in section III. Methodology B. Research Approach towards the end of this report.
The proposed statements received varying levels of support among participants. Overall, while none of the statements resonated strongly with participants, each was viewed as having its own strengths and weaknesses as outlined below. On balance, participants tended to favor those statements that were clear and easy to understand, provided taxpayers with new information, and/or were applicable to a wide audience.
The statements below are rank ordered from highest to lowest in terms of how important participants felt each was for the CRA to share with Canadians.
All Canadians, residents and non-residents are responsible for knowing their tax rights and obligations relating to the real estate sector. (Statement 2)
Starting in 2016, you are required to report basic information such as date of acquisition, date of sale, proceeds of disposition and a description of the property on your year-end tax return in order to qualify for the principal residence exemption (PRE). This requirement applies even if the entire gain is fully protected by the PRE, otherwise you could be subject to penalties for filing your principal residence designation late. (Statement 4)
As a Canadian resident, you are required to report your worldwide income which includes any gains on the sale of real estate in another country. (Statement 3)
Rising housing prices have contributed to more tax non-compliant behaviour in the real estate sector, such as money laundering and mortgage fraud. These kinds of activities have resulted in an increased volume of real estate transactions as fraudsters seek to make ‘easy money’, less inventory and an overall increase in housing prices, making affordability a challenge for Canadians. (Statement 1)
The target audience for this research consisted of the following:
All participants were recruited in adherence to the Standards for the Conduct of Government of Canada Public Opinion Research – Qualitative Research. This included ensuring that:
A total of 12 focus groups comprised of individual taxpayers were conducted between February 21st and March 7th, 2023. These groups were segmented across five regions – Atlantic Canada, Quebec, Ontario, the Prairies, and British Columbia, with additional segmentation by city to ensure the representation of key real estate markets. Furthermore, groups were segmented by market value of the property. This segmentation was based off data from the Canadian Real Estate Association (CREA) on the average selling price of a home in the respective region. The details for each group such as language, region, and composition, are outlined in the table below.
| Date | Time (pm/EST) | Language | Location | Composition | Number of Participants |
|---|---|---|---|---|---|
| February 21, 2023 | 8:00-9:30 | English | Vancouver | Home market value $1M+ | 7 |
| February 22, 2023 | 6:00-7:30 | English | City of Toronto | Home market value $1.2M+ | 7 |
| February 22, 2023 | 8:00-9:30 | English | Greater Vancouver Area | Home market value under $1M | 8 |
| February 23, 2023 | 6:00-7:30 | English | Greater Toronto Area | Home market value under $1.2M | 6 |
| February 27, 2023 | 8:00-9:30 | English | British Columbia | Home market value $500K+ | 8 |
| February 28, 2023 | 6:00-7:30 | English | Ontario | Home market value $500K+ | 6 |
| February 28, 2023 | 6:00-7:30 | French | Montreal | Home market value $500K+ | 8 |
| March 1, 2023 | 5:00-6:30 | English | Halifax | Home market value $400K+ | 7 |
| March 1, 2023 | 6:00-7:30 | French | Quebec | Home market value under $500K | 6 |
| March 2, 2023 | 5:00-6:30 | English | Atlantic | Home market value under $500K | 7 |
| March 6, 2023 | 8:00-9:30 | English | Calgary and Edmonton | Home market value under $500K | 8 |
| March 7, 2023 | 8:00-9:30 | English | Prairies | Home market value $500K+ | 7 |
| - | - | - | - | Total Number of Participants | 85 |
For each group, 8 participants were recruited with expectation that 6-8 participants would attend. On a best-efforts basis, each group aimed to include a mix of gender, household income, and ethnicity. A total of 96 participants were recruited and across the 12 groups and 85 participants attended the discussions. The group discussions were conducted online via Zoom and were approximately 90 minutes in length. For their participation, each individual received an incentive of $125. All group discussions were conducted in English apart from those in Quebec which were conducted in French.
In addition to the 12 focus groups, 20 in-depth interviews were conducted with real estate professionals from February 28th to March 20th, 2023. The interviews were also segmented across five regions – Atlantic Canada, Quebec, Ontario, the Prairies, and British Columbia, with additional segmentation by city to ensure representation from key real estate markets. The details for these interviews such as region and language are outlined in the table below.
| Region | Language | Composition | Number of Interviews |
|---|---|---|---|
| Atlantic | English | Halifax | 1 |
| Atlantic | English | Region wide | 1 |
| Quebec | French | Montreal | 2 |
| Quebec | French | Province wide | 1 |
| Ontario | English | City of Toronto | 2 |
| Ontario | English | Greater Toronto Area | 2 |
| Ontario | English | Province wide | 2 |
| Prairies | English | Calgary | 1 |
| Prairies | English | Edmonton | 1 |
| Prairies | English | Manitoba/Saskatchewan | 1 |
| Pacific | English | City of Vancouver | 2 |
| Pacific | English | Greater Vancouver Area | 2 |
| Pacific | English | Province wide | 2 |
| - | - | Total Number of Interviews | 20 |
Across the 20 interviews, efforts were made to include a diverse mix of occupation (with a minimum of one tax intermediary in Ontario, Quebec, and B.C.), types of real estate transactions involved in, years working in the sector, size of company, gender, and age. Only those working in the sector for more than a year were recruited. Each interview lasted approximately 45 minutes and was conducted online via Zoom. In appreciation of their time, each professional received an incentive of $200. Interviews in Quebec were conducted in French while all other interviews were conducted in English.
Separate recruiting screeners and moderator/interview guides were developed for individual taxpayers and real estate professionals respectively. All research instruments in English and French can be found in the Appendix.
During the screening process and/or at the outset of each discussion, participants were informed that this research was being conducted on behalf of the Government of Canada and CRA and that their responses would be completely confidential. Furthermore, consent to audio and video record the session was obtained at both the time of recruitment and at the beginning of each group.
Participants were recruited in their official language of choice using either a RDD (random digit dialling) approach or a hybrid telephone and online approach. The hybrid approach employed online B2B panels to initially identify potential real estate professionals who were then screened via telephone to ensure they met all the research requirements. A RDD approach was used to recruit individual taxpayers and to fill in any gaps for interviews where online B2B panels were unable to identify prospective recruits by region or occupation.
To schedule and complete 12 focus groups and 20 in-depth interviews within approximately four weeks, four separate moderators were used. During fieldwork, moderators met weekly to share top level findings and trends as well as discuss any adjustments that needed to be made to the moderator and/or interview guides to better obtain key insights. After the initial focus groups, moderators convened to discuss participants' understanding of the following two key statements:
Moderators proposed clarifications for each statement to enhance participants comprehension and to improve the discussion. The two amendments shown below were provided in writing to CRA and approved for use in groups 5 through 12.
Across the focus groups and interviews, a total of 105 individuals over the age of 18, participated in the research.
Recruitment Specifications Summary
Specifications for the focus groups are as follows:
| Group | Date | Time (EST) | Local Time | Location | Composition |
|---|---|---|---|---|---|
| 1 | Feb. 21 | 8:00-9:30pm (EST) | 5:00-6:30pm (PST) | British Columbia City of Vancouver |
Home market value $1M+ |
| 2 | Feb. 22 | 6:00-7:30pm (EST) | 6:00-7:30pm (EST) | Ontario City of Toronto |
Home market value $1.2M+ |
| 3 | Feb. 22 | 8:00-9:30pm (EST) | 5:00-6:30pm (PST) | British Columbia GVA |
Home market value under $1M |
| 4 | Feb. 23 | 6:00-7:30 pm (EST) | 6:00-7:30 pm (EST) | Ontario GTA |
Home market value under $1.2M |
| 5 | Feb. 27 | 8:00-9:30 pm (EST) | 5:00-6:30 pm (PST) | British Columbia Mix of Urban/Suburban |
Home market value $500K+ |
| 6 | Feb. 28 | 6:00-7:30 pm (EST) | 6:00-7:30 pm (EST) | Ontario Mix of Urban/Suburban |
Home market value $500K+ |
| 7 | Mar. 1 | 5:00-6:30 pm (EST) | 6:00-7:30 pm (AST) | Atlantic Canada Halifax |
Home market value $400K+ |
| 8 | Mar. 2 | 5:00-6:30 pm (EST) | 6:00-7:30 pm (AST) 6:30-8:00 pm (NST) |
Atlantic Canada Mix of Urban/Suburban |
Home market value under $500K |
| 9 | Mar. 6 | 8:00-9:30 pm (EST) | 6:00-7:30 pm (MST) | Prairies Calgary/Edmonton |
Home market value $500K+ |
| 10 | Mar. 7 | 8:00-9:30 pm (EST) | 6:00-7:30 pm (MST) 7:00-8:30 pm (CST) |
Prairies Mix of Urban/Suburban |
Home market value under $500K |
Recruiting Script
INTRODUCTION
Hello, my name is [RECRUITER NAME]. I'm calling from The Strategic Counsel, a national public opinion research firm, on behalf of the Government of Canada. / Bonjour, je m’appelle [NOM DU RECRUTEUR]. Je vous téléphone du Strategic Counsel, une entreprise nationale de recherche sur l’opinion publique, pour le compte du gouvernement du Canada.
Would you prefer to continue in English or French? / Préfériez-vous continuer en français ou en anglais? [CONTINUE IN LANGUAGE OF PREFERENCE]
RECORD LANGUAGE
English CONTINUE
French THANK AND END
On behalf of the Government of Canada, we’re organizing a series of online video focus group discussions to explore current issues of interest to Canadians related to real-estate.
The format is a “round table” discussion, led by an experienced moderator. Participants will be given a cash honorarium in appreciation of their time.
Your participation is completely voluntary, and all your answers will be kept confidential. We are only interested in hearing your opinions - no attempt will be made to sell or market you anything. The report that is produced from the series of discussion groups we are holding will not contain comments that are attributed to specific individuals.
[ONLY IF ASKED, RECRUITER CAN CONFIRM]
SURVEY SPONSOR: This research is sponsored by Canada Revenue Agency. Note that your participation will remain completely confidential and it will not affect your dealings with the Government of Canada, including CRA, in any way.
VALIDATION: You may visit www.canada.ca/por-cra to verify the legitimacy of this survey.
But before we invite you to attend, we need to ask you a few questions to ensure that we get a good mix/variety of people in each of the groups. This will take approximately 5 minutes. May I ask you a few questions?
Yes CONTINUE
No THANK AND END
SCREENING QUESTIONS
1. Have you, or has anyone in your household, worked for any of the following types of organizations in the last 5 years?
A market research firm THANK AND END
A marketing, branding, or advertising agency THANK AND END
A magazine or newspaper THANK AND END
A federal/provincial/territorial/municipal government department or agency THANK AND END
A political party THANK AND END
In public/media relations THANK AND END
In radio/television THANK AND END
No, none of the above CONTINUE
1a. Are you a retired Government of Canada employee?
Yes THANK AND END
No CONTINUE
As the group discussion will be focused on real-estate, I have a few related questions to ask you.
2. Do you own or rent your current residence?
IF ASKED/CLARIFICATION REQUIRED: You are considered a homeowner even if you have outstanding debt that you owe on your mortgage loan.Own CONTINUE
Rent CONTINUE
VOLUNTEERED Living at home CONTINUE
VOLUNTEERED Other CONTINUE
VOLUNTEERED Don’t know/not sure CONTINUE
2a. Outside of your current residence, do you own any property that you rent out for residential or commercial use?
Yes CONTINUE
No SKIP TO Q.3
VOLUNTEERED Prefer not to answer SKIP TO Q.3
2b. [IF YES AT Q2a, ASK] How many properties do you own that you rent out for residential or commercial use?
_______
RECORD NUMBER
GROUPS WILL SKEW TOWARDS HOMEOWNER, BUT WE CAN INCLUDE THOSE WHO MAY BE RENTER (DON’T OWN THEIR OWN HOME) BUT DO OWN PROPERTIES TO RENT.
3. For each of the following statements, please respond either “yes” or “no”. In the last four years, have you…
Sold a home?
Severed a piece of land into two or more lots to build residential properties on?
Acquired a second residential property?
Constructed a new residential property on land owned to rent out?
Have made substantial renovations (90% redone) to your principal residence or any other residential property that you own?
CONTINUE IF YES TO ANY OF THE ABOVE, OTHERWISE THANK AND END.
AIM FOR A MIX BY THE CRITERIA ABOVE.
4. In which city was the home(s) you [INSERT BASED ON ANSWER AT Q.3: sold, acquired, constructed to rent out, or renovated substantially] located in?
| LOCATION | CITIES | |
|---|---|---|
| British Columbia | City of Vancouver | CONTINUE – GROUP 1, 3, OR 5 |
| British Columbia | GVA City of Vancouver, Burnaby, New Westminster, Coquitlam, Port Coquitlam, Port Moody, Surrey, Richmond, Delta, White Rock, North Vancouver, West Vancouver, Maple Ridge, Langley, Abbotsford, Chilliwack LIMIT TO 3 PARTICIPANTS FROM CITY OF VANCOUVER. ENSURE A GOOD MIX ACROSS THE REGION. |
CONTINUE – GROUP 3 OR 5 |
| British Columbia | Urban/suburban across B.C. Vancouver, Victoria, Kelowna, Abbotsford, Surrey, Richmond, White Rock, Nanaimo, Kamloops, Chilliwack, Prince George, Vernon LIMIT TO 2 PARTICIPANTS FROM CITY OF VANCOUVER. ENSURE A GOOD MIX ACROSS THE REGION. |
CONTINUE – GROUP 5 |
| Ontario | City of Toronto | CONTINUE – GROUP 2, 4, OR 6 |
| Ontario | GTA City of Toronto, Durham (Ajax, Clarington, Brock, Oshawa, Pickering, Whitby), Halton (Burlington, Halton Hills, Oakville, Milton), Peel (Brampton, Caledon, Mississauga), York (Markham, Vaughan, Richmond Hill, Newmarket, Aurora), Dufferin County (Mono, Orangeville) and Simcoe County. LIMIT TO 3 PARTICIPANTS FROM CITY OF TORONTO. ENSURE A GOOD MIX ACROSS THE REGION. |
CONTINUE – GROUP 4 OR 6 |
| Ontario | Urban/suburban across Ontario Toronto, Ottawa (including suburbs Kanata, Orleans, etc.), Hamilton, Kitchener, London, Oshawa, Windsor, St. Catherines-Niagara Falls, Barrie, Guelph, Kingston, Milton, Brantford, Thunder Bay, Sudbury, Peterborough, Belleville, Sarnia, Sault Ste. Marie, North Bay LIMIT TO 2 PARTICIPANTS FROM TORONTO AND 2 PARTICIPANTS FROM OTTAWA. ENSURE A GOOD MIX ACROSS THE REGION. |
CONTINUE – GROUP 6 |
| Atlantic | Halifax | CONTINUE – GROUP 7 OR 8 |
| Atlantic | Urban/suburban across the Atlantic region NS: Halifax, Dartmouth, Cape Breton-Sydney NB: Moncton, Saint John, Fredericton PEI: Charlottetown N&L: St. John’s LIMIT TO 2 PARTICIPANTS FROM HALIFAX. ENSURE A GOOD MIX ACROSS THE REGION. |
CONTINUE – GROUP 8 |
| Prairies | Calgary Edmonton |
CONTINUE – GROUP 9 OR 10 |
| Prairies | Urban/suburban across the Prairies Cities include (but are not limited to): Saskatchewan: Saskatoon, Regina Manitoba: Winnipeg, Brandon Alberta: Calgary, Edmonton, Red Deer, Lethbridge, Airdrie, Fort McMurray, Medicine Hat, Grande Prairie LIMIT TO 2 PARTICIPANTS FROM CALGARY AND 2 FROM EDMONTON. ENSURE A GOOD MIX ACROSS THE REGION. |
CONTINUE – GROUP 10 |
5. Do you currently reside in [INSERT CITY BASED ON ANSWER AT Q.4] or in another city?
RECORD CITY AND CONTINUE. AIM FOR A MIX OF THOSE WHO RESIDE IN THE SAME CITY AND THOSE WHO RESIDE IN A DIFFERENT CITY.
6. What is your best estimate of the market value of the home(s) you [INSERT BASED ON ANSWER AT Q.3: sold, acquired, constructed to rent out, or renovated substantially]?
6a.
IF GROUP 1-4 (GVA, GTA)
| Under $250,000 | + VANCOUVER = GROUP 3 + TORONTO = GROUP 4 + GVA = GROUP 3 + GTA = GROUP 4 |
| $250,000 - < $500,000 | + VANCOUVER = GROUP 3 + TORONTO = GROUP 4 + GVA = GROUP 3 + GTA = GROUP 4 |
| $500,000 - < $750,000 | + VANCOUVER = GROUP 3 + TORONTO = GROUP 4 + GVA = GROUP 3 + GTA = GROUP 4 |
| $750,000 - < $1,000,000 | + VANCOUVER = GROUP 3 + TORONTO = GROUP 4 + GVA = GROUP 3 + GTA = GROUP 4 |
| $1,000,000 - < $1,200,000 | + VANCOUVER = GROUP 1 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + TORONTO = GROUP 4 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 + GVA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + GTA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 |
| $1,200,000 - < $1,500,000 | + VANCOUVER = GROUP 1 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + TORONTO = GROUP 2 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 + GVA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + GTA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 |
| $1,500,000 - < $2,000,000 | + VANCOUVER = GROUP 1 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + TORONTO = GROUP 2 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 + GVA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + GTA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 |
| $2,000,000 or more | + VANCOUVER = GROUP 1 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + TORONTO = GROUP 2 OR SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 + GVA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 5 + GTA = SKIP TO Q.6B FOR CONSIDERATION FOR GROUP 6 |
| [DO NOT READ] Prefer not to answer |
THANK AND END |
6b.
IF GROUP 5-6 (URBAN/SUBURBAN BC/ONTARIO)
| Under $250,000 | THANK AND END |
| $250,000 - < $500,000 | THANK AND END |
| $500,000 - < $750,000 | + URBAN/SUBURBAN BC = GROUP 5 + URBAN/SUBURBAN ON = GROUP 6 |
| $750,000 - < $1,000,000 | + URBAN/SUBURBAN BC = GROUP 5 + URBAN/SUBURBAN ON = GROUP 6 |
| $1,000,000 - < $1,500,000 | + URBAN/SUBURBAN BC = GROUP 5 + URBAN/SUBURBAN ON = GROUP 6 |
| $1,500,000 - < $2,000,000 | + URBAN/SUBURBAN BC = GROUP 5 + URBAN/SUBURBAN ON = GROUP 6 |
| $2,000,000 or more | + URBAN/SUBURBAN BC = GROUP 5 + URBAN/SUBURBAN ON = GROUP 6 |
| [DO NOT READ] Prefer not to answer |
THANK AND END |
6c.
IF GROUP 7-8 (ATLANTIC)
| Under $250,000 | + HALIFAX = GROUP 8 + OTHER URBAN/SUBURBAN ATLANTIC = GROUP 8 |
| $250,000 - < $400,000 | + HALIFAX = GROUP 8 + OTHER URBAN/SUBURBAN ATLANTIC = GROUP 8 |
| $400,000- < $500,000 | + HALIFAX = GROUP 7 OR 8 + OTHER URBAN/SUBURBAN ATLANTIC = GROUP 8 |
| $500,000 - < $750,000 | + HALIFAX = GROUP 7 + OTHER URBAN/SUBURBAN ATLANTIC = THANK AND END |
| $750,000 - < $1,000,000 | + HALIFAX = GROUP 7 + OTHER URBAN/SUBURBAN ATLANTIC = THANK AND END |
| $1,000,000 - < $1,500,000 | + HALIFAX = GROUP 7 + OTHER URBAN/SUBURBAN ATLANTIC = THANK AND END |
| $1,500,000 - < $2,000,000 | + HALIFAX = GROUP 7 + OTHER URBAN/SUBURBAN ATLANTIC = THANK AND END |
| $2,000,000 or more | + HALIFAX = GROUP 7 + OTHER URBAN/SUBURBAN ATLANTIC = THANK AND END |
| [DO NOT READ] Prefer not to answer |
THANK AND END |
6d.
IF GROUP 9-10 (PRAIRIES)
| Under $250,000 | + CALGARY = GROUP 10 + EDMONTON = GROUP 10 + OTHER URBAN/SUBURBAN PRAIRIES = GROUP 10 |
| $250,000 - < $500,000 | + CALGARY = GROUP 10 + EDMONTON = GROUP 10 + OTHER URBAN/SUBURBAN PRAIRIES = GROUP 10 |
| $500,000 - < $750,000 | + CALGARY = GROUP 9 + EDMONTON = GROUP 9 + OTHER URBAN/SUBURBAN PRAIRIES = THANK AND END |
| $750,000 - < $1,000,000 | + CALGARY = GROUP 9 + EDMONTON = GROUP 9 + OTHER URBAN/SUBURBAN PRAIRIES = THANK AND END |
| $1,000,000 - < $1,500,000 | + CALGARY = GROUP 9 + EDMONTON = GROUP 9 + OTHER URBAN/SUBURBAN PRAIRIES = THANK AND END |
| $1,500,000 - < $2,000,000 | + CALGARY = GROUP 9 + EDMONTON = GROUP 9 + OTHER URBAN/SUBURBAN PRAIRIES = THANK AND END |
| $2,000,000 or more | + CALGARY = GROUP 9 + EDMONTON = GROUP 9 + OTHER URBAN/SUBURBAN PRAIRIES = THANK AND END |
| [DO NOT READ] Prefer not to answer |
THANK AND END |
7. What is your gender?
Female
Male
Non-binary
[DO NOT READ] Prefer to self-identify (Please specify): ____________
[DO NOT READ] Prefer not to answer
ENSURE A GOOD MIX BY GENDER IN EACH GROUP.
8. Would you be willing to tell me in which of the following age categories you belong?
| Under 18 years of age | IF POSSIBLE, ASK FOR SOMEONE OVER 18 AND REINTRODUCE. OTHERWISE THANK AND END. |
| 18-24 | ENSURE A GOOD MIX BY AGE IN EACH GROUP. |
| 25-34 | ENSURE A GOOD MIX BY AGE IN EACH GROUP. |
| 35-44 | ENSURE A GOOD MIX BY AGE IN EACH GROUP. |
| 45-54 | ENSURE A GOOD MIX BY AGE IN EACH GROUP. |
| 55-64 | ENSURE A GOOD MIX BY AGE IN EACH GROUP. |
| 65+ | ENSURE A GOOD MIX BY AGE IN EACH GROUP. |
| VOLUNTEERED Prefer not to answer |
THANK AND END |
9. Which of the following categories best describes your total household income in 2022? That is, the total income of all persons in your household combined, before taxes.
Under $20,000
$20,000 to just under $40,000
$40,000 to just under $60,000
$60,000 to just under $80,000
$80,000 to just under $100,000
$100,000 to just under $150,000
$150,000 and above
VOLUNTEERED Prefer not to answer THANK AND END
ENSURE A GOOD MIX IN ALL GROUPS. LIKELY TO SKEW HIGHER/LOWER BASED ON Q.6 MARKET VALUE OF HOME.
10. Which of the following racial or cultural groups best describes you? (multi-select)
White/Caucasian
South Asian (e.g., East Indian, Pakistani, Sri Lankan)
Chinese
Black
Latin American
Filipino
Arab
Southeast Asian (e.g., Vietnamese, Cambodian, Thai)
Korean or Japanese
Indigenous
Other (specify)
VOLUNTEERED Prefer not to answer THANK AND END
ENSURE A GOOD MIX IN ALL GROUPS.
11. Are you familiar with the concept of a focus group?
Yes CONTINUE
No EXPLAIN THE FOLLOWING “a focus group consists of six to eight participants and one moderator. During a 90-minute session, participants are asked to discuss a wide range of issues related to the topic being examined.”
12. As part of the focus group, you will be asked to actively participate in a conversation. Thinking of how you engage in group discussions, how would you rate yourself on a scale of 1 to 5 where 1 means ‘you tend to sit back and listen to others’ and 5 means ‘you are usually one of the first people to speak’?
1-2 THANK AND END
3-5 CONTINUE
13. As this group is being conducted online, in order to participate you will need to have high-speed Internet and a computer with a working webcam, microphone and speaker. RECRUITER TO CONFIRM THE FOLLOWING. TERMINATE IF NO TO EITHER.
Participant has high-speed access to the Internet
Participant has a computer/webcam
14. Have you used online meeting software, such as Zoom, Webex, Microsoft Teams, Google Hangouts/Meet, etc., in the last two years?
Yes CONTINUE
No CONTINUE
15. How skilled would you say you are at using online meeting platforms on your own, using a scale of 1 to 5, where 1 means you are not at all skilled, and 5 means you are very skilled?
1-2 THANK AND END
3-5 CONTINUE
16. During the discussion, you could be asked to read or view materials on screen and/or participate in poll-type exercises online. You will also be asked to actively participate online using a webcam. Can you think of any reason why you may have difficulty reading the materials or participating by video?
PROVIDE PARTICIPANT WITH OPPORTUNITY TO ENGAGE VIA ALTERNATE FORMAT IF RESPONDENT OFFERS ANY REASON SUCH AS SIGHT OR HEARING PROBLEM, A WRITTEN OR VERBAL LANGUAGE PROBLEM, A CONCERN WITH NOT BEING ABLE TO COMMUNICATE EFFECTIVELY, OR ANY CONCERNS WITH USING A WEBCAM.
17. Have you ever attended a focus group discussion, an interview or survey which was arranged in advance and for which you received a sum of money?
Yes CONTINUE
No SKIP TO Q.21
18. How long ago was the last focus group you attended?
Less than 6 months ago THANK AND END
More than 6 months ago CONTINUE
19. How many focus group discussions have you attended in the past 5 years?
0-4 groups CONTINUE
5 or more groups THANK AND END
20. On what topics were they and do you recall who or what organization the groups were being undertaken for?
TERMINATE IF ANY ON SIMILAR/SAME TOPIC OR GOVERNMENT OF CANADA IDENTIFIED AS ORGANIZATION
21. The focus group discussion will be audio-taped and video-taped for research purposes only. The taping is conducted to assist our researchers in writing their report. Do you consent to being audio-taped and video-taped?
Yes
No THANK AND END
INVITATION
I would like to invite you to this online focus group discussion, which will take place the evening of [INSERT DATE/TIME BASED ON GROUP # IN CHART ON PAGE 1]. The group will be 90 minutes in length and you will receive $125 for your participation following the group via an e-transfer.
Would you be willing to attend?
Yes CONTINUE
No THANK AND END
May I please have your full name, a telephone number that is best to reach you at as well as your e-mail address if you have one so that I can send you the details for the group?
Name:
Telephone Number:
E-mail Address:
You will receive an e-mail from The Strategic Counsel with the instructions to login to the online group. Should you have any issues logging into the system specifically, you can contact our technical support team at support@thestrategiccounsel.com.
We ask that you are online at least 15 minutes prior to the beginning of the session in order to ensure you are set up and to allow our support team to assist you in case you run into any technical issues. We also ask that you restart your computer prior to joining the group.
You may be required to view some material during the course of the discussion. If you require glasses to do so, please be sure to have them handy at the time of the group. Also, you will need a pen and paper in order to take some notes throughout the group.
This is a firm commitment. If you anticipate anything preventing you from attending (either home or work-related), please let me know now. If for any reason you are unable to attend, please let us know as soon as possible at [1-800-xxx-xxxx].
Thank you very much for your time.
RECRUITED BY: ____________________
DATE RECRUITED: __________________
Recruitment Specifications Summary
Specifications for the interviews are as follows:
| Interview Number | Date/Time (in EST) | Region | Location |
|---|---|---|---|
| 1 | Feb. 21 - Mar. 7 45 MINUTES | Atlantic | Halifax |
| 2 | Feb. 21 - Mar. 7 45 MINUTES | Atlantic | Urban/suburban Atlantic |
| 3 | Feb. 21 - Mar. 7 45 MINUTES | Ontario | City of Toronto |
| 4 | Feb. 21 - Mar. 7 45 MINUTES | Ontario | City of Toronto |
| 5 | Feb. 21 - Mar. 7 45 MINUTES | Ontario | GTA |
| 6 | Feb. 21 - Mar. 7 45 MINUTES | Ontario | GTA |
| 7 | Feb. 21 - Mar. 7 45 MINUTES | Ontario | Urban/suburban Ontario |
| 8 | Feb. 21 - Mar. 7 45 MINUTES | Ontario | Urban/suburban Ontario |
| 9 | Feb. 21 - Mar. 7 45 MINUTES | Prairies | Calgary |
| 10 | Feb. 21 - Mar. 7 45 MINUTES | Prairies | Edmonton |
| 11 | Feb. 21 - Mar. 7 45 MINUTES | Prairies | Urban/Suburban Man. or Sask. |
| 12 | Feb. 21 - Mar. 7 45 MINUTES | British Columbia | City of Vancouver |
| 13 | Feb. 21 - Mar. 7 45 MINUTES | British Columbia | City of Vancouver |
| 14 | Feb. 21 - Mar. 7 45 MINUTES | British Columbia | GVA |
| 15 | Feb. 21 - Mar. 7 45 MINUTES | British Columbia | GVA |
| 16 | Feb. 21 - Mar. 7 45 MINUTES | British Columbia | Urban/suburban B.C. |
| 17 | Feb. 21 - Mar. 7 45 MINUTES | British Columbia | Urban/suburban B.C. |
Recruiting Script
INTRODUCTION
Hello, my name is [RECRUITER NAME]. I'm calling from The Strategic Counsel, a national public opinion research firm, on behalf of the Government of Canada. / Bonjour, je m’appelle [NOM DU RECRUTEUR]. Je vous téléphone du Strategic Counsel, une entreprise nationale de recherche sur l’opinion publique, pour le compte du gouvernement du Canada.
Would you prefer to continue in English or French? / Préfériez-vous continuer en français ou en anglais? [CONTINUE IN LANGUAGE OF PREFERENCE]
RECORD LANGUAGE
English CONTINUE
French THANK AND END
We are looking to speak to someone who works in or with the real-estate sector, would that be you?
Yes CONTINUE
No OBTAIN CONTACT INFORMATION, REQUEST TO TRANSFER OR CALL BACK AND CONTINUE
On behalf of the Government of Canada, we’re organizing a series of one-on-one interviews with professionals to explore various issues of importance related to the real estate sector.
The format is a 45-minute online discussion, led by an experienced interviewer. Participants will be given a cash honorarium in appreciation of their time.
Your participation is completely voluntary, and all your answers will be kept confidential. We are only interested in hearing your opinions - no attempt will be made to sell or market you anything. The report that is produced from the series of interviews we are holding will not contain comments that are attributed to specific individuals.
[ONLY IF ASKED, RECRUITER CAN CONFIRM]
SURVEY SPONSOR: This research is sponsored by Canada Revenue Agency. Note that your participation will remain completely confidential and it will not affect your dealings with the Government of Canada, including CRA, in any way.
VALIDATION: You may visit www.canada.ca/por-cra to verify the legitimacy of this survey.
But before we invite you to attend, we need to ask you a few questions to ensure that we get a good mix/variety of people in each of the groups. This will take approximately 5 minutes. May I ask you a few questions?
Yes CONTINUE
No THANK AND END
SCREENING QUESTIONS
1. Have you, or has anyone in your household, worked for any of the following types of organizations in the last 5 years?
A market research firm THANK AND END
A marketing, branding, or advertising agency THANK AND END
A magazine or newspaper THANK AND END
A federal/provincial/territorial government
department or agency THANK AND END
A political party THANK AND END
In public/media relations THANK AND END
In radio/television THANK AND END
No, none of the above CONTINUE
1a. Are you a retired Government of Canada employee?
Yes THANK AND END
No CONTINUE
2. In which city do you currently reside?
| REGION | CITIES | INTERVIEW # |
|---|---|---|
| Atlantic | Halifax | 1 |
| Atlantic | Urban/suburban across the Atlantic region NS: Halifax, Dartmouth, Cape Breton-Sydney NB: Moncton, Saint John, Fredericton PEI: Charlottetown N&L: St. John’s |
2 |
| Ontario | City of Toronto | 3,4 |
| Ontario | GTA Durham (Ajax, Clarington, Brock, Oshawa, Pickering, Whitby), Halton (Burlington, Halton Hills, Oakville, Milton), Peel (Brampton, Caledon, Mississauga), York (Markham, Vaughan, Richmond Hill, Newmarket, Aurora), Dufferin County (Mono, Orangeville) and Simcoe County |
5,6 |
| Ontario | Urban/suburban across Ontario Ottawa (including suburbs Kanata, Orleans, etc.), Hamilton, Kitchener, London, Oshawa, Windsor, St. Catherines-Niagara Falls, Barrie, Guelph, Kingston, Milton, Brantford, Thunder Bay, Sudbury, Peterborough, Belleville, Sarnia, Sault Ste. Marie, North Bay | 7,8 |
| Prairies | Calgary | 9 |
| Prairies | Edmonton | 10 |
| Prairies | Urban/suburban across the PrairiesSaskatchewan: Saskatoon, Regina Manitoba: Winnipeg | 11 |
| British Columbia | City of Vancouver | 12,13 |
| British Columbia | GVA Burnaby, New Westminster, Coquitlam, Port Coquitlam, Port Moody, Surrey, Richmond, Delta, White Rock, North Vancouver, West Vancouver, Maple Ridge, Langley, Abbotsford, Chilliwack | 14,15 |
| British Columbia | Urban/suburban across B.C. Victoria, Kelowna, Abbotsford, Surrey, Richmond, White Rock, Nanaimo, Kamloops, Chilliwack, Prince George, Vernon | 16,17 |
4. Which of the following best describes your occupation…
An owner/operator of a residential development company
An employee of a residential development company (specify role)
An owner/operator (directly or via a management company) of a company that provides short-term rentals (such as Airbnb)
An employee of a company that provides short-term rentals (such as Airbnb)
A contractor working in residential development (an architect, tradesperson, etc.)
A property manager of residential rental properties
An employee of a company that deals with the management of residential rental properties
A mortgage broker or agent
A real-estate broker or agent
A tax intermediary who has clients in the real estate sector
None of the above THANK AND END
AIM FOR A MIX BY OCCUPATION ABOVE. ENSURE AT MINUMUM 1 TAX INTERMEDIARY INTERVIEW IN EACH OF THE ONTARIO, QUEBEC AND PACIFIC REGIONS.
3. For each of the following statements, please respond either “yes” or “no”. Have you been …
Directly involved in the business (or planning) of developing, building and/or trading of residential properties
Engaged as a contractor (trade, architect, etc.) in the of developing, building and/or trading of residential properties
Involved in the renovating of residential properties with the intention of buying and then reselling quicky
Involved in the role of (either directly, or indirectly via another company) operating a short-term rental (such as Airbnb) as an operator or employee
Involved in leasing a residential property that you own, giving the right to the lease to rent the property on a short-term basis
Involved in the property management of rental properties
Involved in residential property transactions as a broker or salesperson earning commission
Involved in filing tax returns on behalf of individuals or businesses who undertake designing, building, flipping, or property management rentals of residential properties
None of the above
CONTINUE IF YES TO ANY OF THE ABOVE, OTHERWISE THANK AND END.
AIM FOR A MIX BY CRITERIA ABOVE.
4. How many years have you been working in [the real estate, an area that supports the real estate sector/a field that impacts the real estate sector]?
Less than a year THANK AND END
1-5 years
6-10 years
More than 10 years
AIM FOR A MIX ACROSS INTERVIEWS.
5. Approximately how many employees does your company employ, both full-time and part-time?
1 CONTINUE
2 – 4 CONTINUE
5 – 19 CONTINUE
20 – 49 CONTINUE
50 – 99 CONTINUE
100 or more THANK AND END
Don’t know THANK AND END
AIM FOR A MIX ACROSS INTERVIEWS.
6. What is your gender?
Female
Male
Non-binary
[DO NOT READ] Prefer to self-identify (Please specify): ____________
[DO NOT READ] Prefer not to answer
ENSURE A GOOD MIX BY GENDER ACROSS INTERVIEWS.
7. Would you be willing to tell me in which of the following age categories you belong?
Under 18 years of age THANK AND END
18-24
25-34
35-44
45-54
55-64
65 or older
[DO NOT READ] Prefer not to answer
ENSURE A GOOD MIX ACROSS INTERVIEWS. AGE WILL SKEW TO THOSE OF WORKING AGE.
8. As this interview is being conducted online, can you confirm that you have high-speed Internet and a computer with a working webcam, microphone and speaker? RECRUITER TO CONFIRM THE FOLLOWING, OTHERWISE SEE BELOW TO OFFER ALTERNATIVE FORMAT.
9. How skilled would you say you are at using online meeting platforms on your own, using a scale of 1 to 5, where 1 means you are not at all skilled, and 5 means you are very skilled?
1-2 SEE BELOW AND OFFER AN ALTERNATIVE FORMAT
3-5 CONTINUE
10.During the discussion, you could be asked to read or view materials on screen. You will also be asked to actively participate online using a webcam. Can you think of any reason why you may have difficulty reading the materials or participating by video?
Yes SEE BELOW AND OFFER AN ALTERNATIVE FORMAT
No CONTINUE
ALTERNATIVE FORMAT Q8-10:
PROVIDE PARTICIPANT WITH OPPORTUNITY TO ENGAGE VIA ALTERNATE FORMAT (TELEPHONE INTERVIEW, FOR EXAMPLE) IF RESPONDENT: DOES NOT HAVE HIGH SPEED INTERNET/WEBCAM, IS LESS SKILLED IN USING ONLINE PLATORMS, OFFERS ANY REASON SUCH AS SIGHT OR HEARING PROBLEM, A WRITTEN OR VERBAL LANGUAGE PROBLEM, A CONCERN WITH NOT BEING ABLE TO COMMUNICATE EFFECTIVELY, OR ANY CONCERNS WITH USING A WEBCAM.
11. Have you ever attended an interview or focus group discussion which was arranged in advance and for which you received a sum of money?
Yes CONTINUE
No SKIP TO Q.15
12. How long ago was the last interview or focus group you attended?
Less than 6 months ago THANK AND END
More than 6 months ago CONTINUE
13. How many interviews or focus group discussions have you attended in the past 5 years?
0-4 CONTINUE
5 or more THANK AND END
14. On what topics were they and do you recall who or what organization they were being undertaken for?
TERMINATE IF MENTION OF CANADA REVENUE AGENCY OR GOVERNMENT OF CANADA IDENTIFIED AS ORGANIZATION OR TAX-RELATED TOPICS MENTIONED AS SUBJECT/TOPIC OF DISCUSSION.
15. The interview will be audio-taped and video-taped for research purposes only. The taping is conducted to assist our researchers in writing their report. Do you consent to being audio-taped and video-taped?
Yes
No THANK AND END
INVITATION
I would like to invite you to an interview, which will take place the evening of [INSERT DATE/TIME BASED ON GROUP # IN CHART ON PAGE 1]. The discussion will be 45 minutes in length and you will receive $200 for your participation following the group via an e-transfer.
Would you be willing to attend?
Yes CONTINUE
No THANK AND END
May I please have your full name, a telephone number that is best to reach you at as well as your e-mail address if you have one so that I can send you the details for the group?
Name:
Telephone Number:
E-mail Address:
You will receive an e-mail from The Strategic Counsel with the instructions to login to the online group. Should you have any issues logging into the system specifically, you can contact our technical support team at support@thestrategiccounsel.com.
We ask that you are online at least 15 minutes prior to the beginning of the session in order to ensure you are set up and to allow our support team to assist you in case you run into any technical issues. We also ask that you restart your computer prior to joining the group.
You may be required to view some material during the course of the discussion. If you require glasses to do so, please be sure to have them handy at the time of the group. Also, you will need a pen and paper in order to take some notes throughout the group.
This is a firm commitment. If you anticipate anything preventing you from attending (either home or work-related), please let me know now.. If for any reason you are unable to attend, please let us know as soon as possible at [1-800-xxx-xxxx].
Thank you very much for your time.
RECRUITED BY: ____________________
DATE RECRUITED: __________________
INTRODUCTION (10 MINUTES)
TAX FILING FOR REAL ESTATE TRANSACTIONS (15 MINUTES)
NON-COMPLIANT BEHAVIOUR RELATED TO REAL ESTATE TRANSACTIONS (30 MINUTES)
SHOW ON SCREEN: The real estate landscape has become more complex over recent years and CRA wants to ensure that taxpayers involved in real estate transactions are informed about their tax rights and obligations. By filing their tax returns correctly, taxpayers would be better positioned to not miss out on eligible deductions, tax credits or rebates nor would they pay unnecessary penalties or interest charges. However, recent trends in the market could lead to situations in which real estate transactions may be underreported or unreported by taxpayers. The CRA refers to these as non-compliant.
MODERATOR TO REVIEW PARTICIPANT TOP SELECTIONS. Why did you make this selection? Explain.
THE ROLE OF CRA AND COMMUNICATION PREFERENCES (30 MINUTES)
MODERATOR WILL INTRODUCE AN EXERCISE TO EXPLORE PERCEPTIONS OF FOUR KEY STATEMENTS.
SHOW STATEMENTS ON SCREEN ONE AT A TIME. ROTATE ORDER IN WHICH STATEMENTS ARE SHOWN FOR EACH GROUP. ASK FOR EACH:
CONCLUSION AND WRAP-UP (5 MINUTES)
Thank you for your time today and for sharing your opinions. Your feedback has been very helpful.
INTRODUCTION (5 MINUTES)
TAX FILING FOR REAL ESTATE TRANSACTIONS (5 MINUTES)
IF TAX INTERMEDIARY: In the capacity of a tax intermediary, have you directly or indirectly worked with a client (e.g., individual/sole proprietor, partnership, corporation) involved in any of the following: READ LIST.
NON-COMPLIANT BEHAVIOUR RELATED TO REAL ESTATE TRANSACTIONS (15 MINUTES)
SHOW ON SCREEN: The real estate landscape has become more complex over recent years and CRA wants to ensure that taxpayers involved in real estate transactions are informed about their tax rights and obligations. By filing their tax returns correctly, taxpayers would be better positioned to not miss out on eligible deductions, tax credits or rebates nor would they pay unnecessary penalties or interest charges. However, recent trends in the market could lead to situations in which real estate transactions may be underreported or unreported by taxpayers. The CRA refers to these as non-compliance or non-compliant behavior.
Probe for: not filing (reporting), filing inaccurately (in what ways?), other things?
INTERVIEWER TO CLARIFY AS NECESSARY:
THE ROLE OF CRA AND COMMUNICATION PREFERENCES (10 MINUTES)
Probe for:
CONCLUSION AND WRAP-UP (5 MINUTES)
Thank you for your time today and for sharing your opinions. Your feedback has been very helpful.
Poll 1 – Drivers/Factors
| Option | Total |
|---|---|
| Price increases in the market value of homes | 53 |
| Record profits in the sale of properties | 48 |
| An overall increase in the number of real estate transactions occurring | 16 |
| Affordability/inflation | 46 |
| Lack of awareness or knowledge about their tax obligations related to these transactions | 46 |
| Other | 9 |
Poll 2 – Key Messages
| Option | Total |
|---|---|
| Statement 1 | |
| Non-compliance in the real estate sector negatively impacts the real estate market in Canada, including making housing affordability a challenge for Canadians. | 7 |
| *Rising housing prices have contributed to more tax non-compliant behaviour in the real estate sector, such as money laundering and mortgage fraud. | 19 |
| Statement 2 | |
| All Canadians, residents and non-residents are responsible for knowing their tax rights and obligations relating to the real estate sector. | 52 |
| Statement 3 | |
| As a Canadian resident, you are required to report your world-wide income which includes any gains on the sale of real estate in another country. | 32 |
| Statement 4 | |
| Effective 2016, on the sale of a residential property you have to designate the property as your principal residence when you file your year-end tax return. | 10 |
| *Starting in 2016, you are required to report basic information on your year-end tax return in order to qualify for the principal residence exemption (PRE). | 25 |
| None of the above | 1 |