79029 Conveyances to Family Farm Corporations and Family Business Corporations & Land Transfer Tax
Bulletin information:
Issue Date: August 10, 1979
Legislation: The Land Transfer Tax Act, 1974 – Ontario Regulation 563/79
Bulletin content:
Ontario Regulations 563/79 which was filed July 30, 1979 and which will appear in the Ontario Gazette of August 18, 1979 provides that The Land Transfer Tax Act, 1974 was not intended to apply to a conveyance of land from an individual to his family farm corporation or family business corporation.
With respect to a conveyance of a land to a family farm corporation, the transferee, in order to be exempt from land transfer tax, must complete two copies of the affidavit appearing at the end of the Bulletin and attach one to the conveyance and one to the extra copy of the land transfer tax affidavit, which accompanies the conveyance. In addition, the following must be inserted in section 6 of each copy of the land transfer tax affidavit:
“Exemption claimed pursuant to section 2 of Ontario Regulation 563/79.”
In the case of a conveyance to a family business corporation, no tax is payable is the conveyance has been stamped by the Ministry of revenue that no tax is payable.
Original signed by:
M.D. Godfrey, Senior Solicitor