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the BC government will soon require sellers to disclose their residency during a real estate transaction so that information can be shared with the Canada Revenue Agency CRA observers say it's a much-needed change that replaces an honor system that was open to abuse by speculators seeking to avoid paying capital gains tax on properties they don't live in but some worry that because the province is placing the onus for confirming that information on the buyer it exposes them to potential fines or even jail time if they get it wrong a buyer who doesn't properly certify a sellers residency status could also be on the hook for unpaid capital gains tax the government has changed a tax form used to collect the property transfer tax to include whether the sellers in real estate transactions are Canadian residents under the Income Tax Act Canadian resident homeowners do not pay tax on the increased value or capital gains of a property designated as a principal residence non-residents must pay

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