Prescribed Information for the Purposes of Section 5.0.1 Form

Update

The Ministry of Finance recommends completing the Prescribed Information for the Purposes of Section 5.0.1 Form (Form) beginning on April 24, 2017.  Completing this form will become mandatory as of May 6, 2017.  However, during the transition period from April 24 to May 5, 2017, any incomplete information, inability to complete the Form, errors and/or omissions made on the Form will not affect the registration of the transaction or incur penalties. 

As of April 22, the Form will be available to complete and submit on Teranet eXpress, which is outside of the Teraview system. 

Please note that if the new statements are selected, any documents related to the transaction that were signed before April 24, 2017 will have to be re-signed.  If this is not possible, it is recommended that none of the statements be selected — this provision applies only during the transition period.

The following table outlines the key dates and the actions required to complete the Prescribed Information for the Purposes of Section 5.0.1 Form.

Key Date	What is happening	Action Required
April 22, 2017	Form will be available on Teranet eXpress	It is recommended that the form be completed.
April 22, 2017	Three new statements located on the Land Transfer Tax branch will be introduced into Teraview	Completion is optional.  Note: if you do choose to select one of the statements both parties will have to resign the Instrument.
April 22 – May 5 (inclusive)	Transition Period	In anticipation of the Form becoming mandatory it is recommended that the form be completed.   Any incomplete information, inability to complete the Form, errors and/or omissions made on the Form will not affect the registration of the transaction or incur penalties.  Note:  During Instrument creation for transactions closing after May 5, please ensure that the appropriate statements in Teraview be selected.
May 6, 2017	The selection of one of the three new Teraview statements will be mandatory	If you have not selected one of the statements, an error will be received during signing and registration. You must select one of the statements and both parties will have to re-sign the Instrument.

Overview

To better understand trends in the housing market, the Province is collecting additional information through the land transfer tax (LTT) system. This additional data will be used for the administration and enforcement of the LTT and to support evidence‑based policy development with respect to Ontario's real estate market.

Persons who purchase or acquire land that contains at least one and not more than six single family residences, or agricultural land, are required to provide this additional information.

The additional information will be collected on the Prescribed Information for Purposes of Section 5.0.1 Form (Form).

Timelines

Beginning on April 24, 2017 the submission of the Form will be mandatory.

To assist taxpayers, the Ministry of Finance will provide a transition period from April 24 to May 5, 2017, where any deficiencies relating to the Form will not incur penalties.

Note: The additional information is still required to be submitted for applicable purchases and acquisitions of land that occur during this transition period.

Changes to Teraview

As of April 24, 2017, the three statements below will be available in Teraview for selection. However, after May 5, 2017 in order to complete a land registration, all users must select one of the applicable statements in Teraview:

• The information prescribed for the purposes of section 5.0.1 of the Land Transfer Tax Act is required to be provided for this conveyance. The information has been provided as confirmed by CONFIRMATION NUMBER.
• The information prescribed for the purposes of section 5.0.1 of the Land Transfer Tax Act is required to be provided for this conveyance. The information cannot be provided electronically prior to the time of registration, but will be provided in paper form and submitted directly to the Ministry of Finance: REASON FOR DELAY.
• The information prescribed for the purposes of section 5.0.1 of the Land Transfer Tax Act is not required to be provided for this conveyance.

See note above for further details regarding the transition period.

For more information on the Confirmation Number requirement, please refer to the Submission section.

In the REASON FOR DELAY field, enter the reason why the additional information will be submitted using the manual paper form. Potential reasons may include (but are not limited to):

• access to the Teranet eXpress system is unavailable
• the electronic form cannot accommodate the requested information, and
• additional documents and information must be attached to the Form.

Additional information required

The Form is required to be completed for purchases and acquisitions of land that contain at least one and not more than six single family residences, or agricultural land in Ontario.

Persons who purchase or acquire the applicable land acting as a trustee of a mutual fund trust, real estate investment trust (REIT), or specified investment flow‑through (SIFT) trust are not required to complete the Form.

The prescribed information required includes (but is not limited to) the following:

• whether the home is intended to be occupied by the person who purchases or acquires the land, or their family member(s), as their principal residence
• the type of dwelling (detached, semi‑detached, condominiums, cottages, etc.)
• whether the property, in part or in whole, is intended to be leased out
• residency, citizenship and permanent resident status, if the person who purchases or acquires the land is an individual
• information about incorporation, ownership and control, if the purchasers are corporations, and
• information about beneficial owners, if the person who purchases or acquires the land is acting as a trustee, nominee or in a similar capacity.

Refer to the instructions of the Form for details on the specific additional information questions.

Unregistered dispositions of a beneficial interest in land

The requirement to provide additional information and submit the Form applies to all persons who acquire beneficial interest in applicable land. This includes persons who purchase or acquire land where section 3 of the Land Transfer Tax Act is applicable.

See instructions on the Manual Paper Form under the Submission section below, for information on submitting the Form for unregistered dispositions.

Submission

Electronic Form

For the electronic form, the additional information will be collected through Teranet eXpress, a secure and confidential online platform operated by Teranet Inc.

Once all applicable information on the Form is completed, press the Submit button at the end of the Form. Correct any issues if prompted by the system.

After submission, the system will provide you with a Confirmation Number. This number must be inputted into the applicable provincial land transfer tax statement in Teraview for the instrument that is being registered. See Changes to Teraview section above for more information.

To retrieve a lost Confirmation Number, a link will be available to search for your Confirmation Number by providing the following:

• Teraview account number
• account name, and
• date of form submission.

Manual paper Form

For manual paper registrations and unregistered dispositions of land, this information will be collected on an approved form which must be delivered directly to the Ministry of Finance.

Offences and penalties

Failure to submit the Form may constitute an offence under the Land Transfer Tax Act. However, during the transition period of April 24 to May 5, 2017, no penalties will be applicable for any deficiencies on the Form. Note that the additional information is still required to be submitted for applicable purchases and acquisitions of land that occur during the transition period.

Frequently Asked Questions

Is anyone exempt from the requirement to submit additional information?

Transferees who are acting as trustees for the following trusts do not have to provide additional information:

• A mutual fund trust within the meaning of subsection 132(6) of the Income Tax Act (Canada)
• A real estate investment trust (REIT) as defined in subsection 122.1(1) of the Income Tax Act (Canada)
• A specified investment flow‑through (SIFT) trust as defined in subsection 122.1(1) of the Income Tax Act (Canada)

Is the requirement to provide additional information the same as or related to the Non‑Resident Speculation Tax?

The obligation to provide additional information is separate and distinct from the application of the Non‑Resident Speculation Tax (NRST), which will apply only to transfers of land within the Greater Golden Horseshoe Region. For more information on the NRST.

Will this information be kept confidential?

Yes.

If the additional information is submitted electronically, all additional information is kept on a separate, secure and confidential platform, not accessible to the public.

If the information is submitted on a paper form directly to the Ministry of Finance, it will be treated in the same confidential manner as other tax information the Ministry of Finance currently collects, in accordance with the Freedom of Information and Protection of Privacy Act.

What is the information that must be provided about the transferee?

The following information about each individual transferee is required:

• Transferee name
• Transferee date of birth
• Whether the transferee or a family member of the transferee intends to make a single family residence his or her principal residence
• Whether the transferee intends to rent out the land
• Whether the transferee has resided in Canada for 183 days in the immediately preceding 12 month period
• Whether the transferee is a Canadian citizen or permanent resident of Canada, and if not, the citizenship of the transferee.

For each corporate transferee:

• The legal name of corporation
• Whether the corporation is a “foreign corporation”
• The number of directors of the corporation, and
• The number of “foreign nationals” who are directors of the corporation
• Countries of citizenship of the directors who are “foreign nationals”
• Information about shareholders who hold voting rights: countries of citizenship of individuals and countries of incorporation for corporations
• Whether the transferee intends to rent out the land.

Instructions on the paper Form and on the Teranet eXpress platform provide assistance in explaining how to complete the Form.

Why do I have to provide this information?

The Land Transfer Tax Act requires that this information be provided. Failure to submit the Form may constitute an offence under the Land Transfer Tax Act.

This additional data will be used for the administration and enforcement of the Land Transfer Tax Act and to support continued evidence‑based policy development with respect to Ontario's real estate market.

Will my registration be held up because I do not have the information required?

In anticipation of the Form becoming mandatory on May 6, 2017, it is recommended that the Form be completed.

Until May 6, 2017, any incomplete information, inability to complete the Form, errors and/or omissions made on the Form will not affect the registration of the transaction or incur penalties.

What if I do not have the information at the time of electronic registration?

If not all the information is known at the time of electronic registration, select the statement 9169, and insert text in the statement explaining why the information is not available:

The additional information must be submitted to the Ministry of Finance on a paper Form, as soon as possible after the registration of the transfer.

I am solicitor. What are my responsibilities in ensuring that the information provided by my client is accurate?

The purchaser's lawyer must satisfy their professional obligations in relation to the information provided by clients on the Prescribed Information for the Purposes of Section 5.0.1 Form (e.g. the Law Society of Upper Canada's Rules of Professional Conduct).

If the Form is not submitted at the time of registration, who has the responsibility to provide the information afterwards?

It is the responsibility of the transferee to provide the information; however, the Form can be submitted by any of the individuals required to file a statement or affidavit under subsection 5(2) of the Land Transfer Tax Act.

If the prescribed information is not required from the transferee is there an obligation to provide the LTT statement? Is a confirmation number still required in this circumstance?

After May 5, 2017 in order to complete a land registration, all users must confirm if prescribed information is, or is not, required for the conveyance being registered by selecting one of three land transfer tax statements in Teraview (e.g., 9167, 9168 or 9169).

If a registrant indicates that the prescribed information is not required by selecting 9168, a confirmation number is not required to complete a registration.

How will the audit process work?

The Ministry's authority to audit for provincial land transfer tax liability (including liability for NRST) is set out in section 10 of the Land Transfer Tax Act. Read general information about ministry audits.

The new Land Transfer Tax Act definition of agricultural land refers to farm land. Are lawyers to look to Assessment Act which uses farm land language?

Yes, the words parallel the wording of subsection 19(5) of the Assessment Act, so land valued as farm lands under subsection 19(5) of that Act would fall under the definition of agricultural land under O. Reg. 120/17.

Is the relevant criterion for agricultural land in the Land Transfer Tax Act the intended use by the transferee or the historic use by the transferor?

The land already has to be used for farm purposes in order to qualify as agricultural land. Therefore, to determine whether the land is agricultural land, the transferor's use of the land up to the date of conveyance or disposition must be examined, and not the transferee's intended use.

What is meant by legal name?

A legal name of an individual is best evidenced by a birth certificate. If a birth certificate is unavailable, then other government ID such as a passport or driver's license would evidence the legal name of an individual.

A corporation's legal name would be the name according to the records maintained by the Ministry of Government and Consumer Services pursuant to the Corporations Information Act (as opposed to the trade name of the corporation).

What if there is a difference between the transferee's name and legal name?

Where an individual is the transferee, such transferee's name on the registered transfer should be either his or her legal name or the name commonly used by the individual that is sufficient to identify the individual in relation to his or her government identification.

Where a corporation is the transferee, the corporation's legal name must be set out on the registered transfer.

Are non‑share capital corporations such as Condominiums or Co‑operatives required to complete the Form?

Yes, if the conveyance is agricultural land or land that contains at least one and not more than six single family residences in Ontario.

Are assignors of Agreements of Purchase and Sale required to submit a Form?

The Form is required to be completed on the registration of a transfer or the acquisition of a beneficial interest in land in Ontario.

The assignor would generally not be required to submit a Form, unless the assignor acquires a beneficial interest in the applicable land, prior to or after the assignment.

Is the Form required for vacant land?

Yes, if the land is agricultural land it is subject to the Form. The vacant land could also be subject to the Form if a single family residence is to be constructed on the land as part of the arrangement relating to the conveyance.

How do I complete the Form for a transfer with two or more Property Identifier Numbers (PINS)?

A transfer of land can involve more than one Property Identifier Number (PIN). Both Teraview and the paper‑based form allow for provision of information on multiple parcels of land, on a PIN by PIN basis. Information only has to be provided on parcels containing land identified in the regulation, as identified by PIN.

In what circumstances is the paper Form on the Ministry of Finance website to be used?

The paper Form may be used in a number of situations, including:

• for a conveyance that is presented for registration at a land registry office, and for which a land transfer tax affidavit is required to be made
• for unregistered dispositions of a beneficial interest in residential property, including the purchase or acquisition of residential property where section 3 of the Land Transfer Tax Act is applicable
• when the information cannot be provided electronically prior to the time of registration (such as when the electronic form cannot accommodate the requested information, or when additional documents and information must be attached to the form), and
• when the Teranet eXpress electronic‑based Form is not available due to technical issues.

Completed paper Forms should be mailed to the Ministry of Finance at the address indicated in the section above entitled Manual Paper Form.

Is it possible to save the electronic Form as a draft?

There is currently no save function in Teranet eXpress, you must complete and submit the form at the same time. Please note the Form window in Teranet eXpress remains open for a span of 6 hours.

Can the vendor's lawyer sign for completeness without getting an LTT confirmation number?

Currently this is not feasible through the Teraview platform.

How do I correct a mistake or make an amendment to a Form after it has been submitted?

Please do not use the Teraview platform to make any corrections or amendments to a Form that has been submitted.

To make a correction or amendment please mail a revised paper Form to the Ministry of Finance, indicating the correction or amendment that is being made and what registration the correction or amendment pertains to.

Definitions

“Transferee” Includes a person to whom land is conveyed and any person whose interest in land is increased, created or given effect to as the result of a conveyance.

“Agricultural land” Means farm lands used for farm purposes by the owner, or used for farm purposes by a tenant of the owner and buildings thereon used for farm purposes, including the residence of the owner or tenant and of the owner's or tenant's employees and their families on the farm land.

“Single family residence” Means a unit or proposed unit under the Condominium Act, 1998 or a structure or part of a structure that is designed for occupation as the residence of a family, including dependants or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,

1. includes such a residence that is to be constructed as part of the arrangement relating to a conveyance, and
2. does not include such a residence that is constructed or is to be constructed on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act.

Single family residences may include (but are not limited to): detached and semi‑detached houses, duplex, freehold townhouse, condominium townhouse, condominium apartment, and cottage.

“Family member” means, with respect to an individual:

1. the individual's spouse
2. a child or step‑child of the individual or the individual's spouse
3. a parent or step‑parent of the individual or the individual's spouse
4. a grandparent or step‑grandparent of the individual or the individual's spouse
5. a sibling or step‑sibling of the individual or the individual's spouse, or any spouse of any such sibling
6. the spouse of a child of the individual, or
7. a grandchild, step‑grandchild or great‑grandchild of the individual or the individual's spouse, or the spouse of any such grandchild or great‑grandchild.

“Foreign corporation” means a corporation that is one of the following:

1. A corporation that is not incorporated in Canada.
2. A corporation that is incorporated in Canada and is controlled by one or more of the following:
   1. A foreign national.
   2. A corporation that is not incorporated in Canada.
   3. A corporation that would, if each share of the corporation's capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled by the particular person;

Note: For the purposes of this Form, a corporation that is incorporated in Canada will not be considered a “foreign corporation” if its shares are listed on a stock exchange in Canada.

“Controlled”, in relation to the control of a corporation, means controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada).

“Foreign national” refers to an individual who is not a Canadian citizen or a permanent resident, and includes a stateless person, as defined in the Immigration and Refugee Protection Act (Canada).

Contact us

Documents required under the Act can be submitted by email, fax or mail, as per the contact information noted below.

If this page does not completely address your situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact us by:

• Email: LTTGeneral@Ontario.ca
• Fax: 905-433-5770
• Telephone toll free: 1-866-668-8297
• Teletypewriter (TTY): 1-800-263-7776
• Mail: Ministry of Finance Land Taxes Section 33 King Street West Oshawa ON L1H 8H9

This information is intended to assist you in the completion of the Prescribed Information for Purposes of Section 5.0.1 Form. However, the information does not replace the law under which the prescribed information is required to be provided; nor does it constitute a legal interpretation of the Land Transfer Tax Act, and the Ontario Regulation 120/17, made under the Act.