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What are Certificates of Compliance?

April 26, 2017certificates compliance

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What are Certificates of Compliance?

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10 Posted

A. For sale of a Canadian property, the purchaser’s lawyer is obligated to withhold (or put the vendor’s lawyer on an undertaking to withhold) funds for payment of the capital gains tax. If the non-resident vendor wishes to have the funds be released after the capital gains taxes are paid, they need to apply to the Canada Revenue Agency for certificates of compliance. The time limit for making the applications is 10 days after the disposition.