By way of a short recap of this legislation, in November 2020, the Land Owner Transparency Registry ("LOTR") was launched by the BC Government to satisfy the requirements under the Land Owner Transparency Act ("LOTA"). The LOTR requires, all individuals, corporations, trusts, and other legal entities that own a beneficial interest in any land located in BC, either directly or indirectly, to disclose specific information. Selected information of those with a beneficial interest in property is publicly available through the LOTR's searchable public database operated by the Land Title and Survey Authority of British Columbia ("LTSA").
The LOTR requires all relevant corporations, trusts, and partnerships ("Reporting Bodies") under LOTA to fill out a land-owner transparency report ("Transparency Report") disclosing the personal information of all individuals who directly or indirectly exercise at least 10% voting control over that entity.
The LTSA sent letters back in 2020/2021 to all Reporting Bodies advising them of the requirements to file a Report by the deadline of November 30, 2022, otherwise, enforcement and penalties could apply.
In the past month, the Ministry of Finance has been sending out "Compliance Letters" advising that it has commenced enforcement actions. Compliance Letters are being sent to Reporting Bodies that owned real property prior to November 30, 2020, and were required to file a Transparency Report prior to the deadline of November 30, 2022, but which have failed to do so.
Companies that have received Compliance Letters have 60 days to complete the Transparency Report, or otherwise report an exclusion under Schedule 1 of LOTA that exempts them from the requirement, before penalties may apply. Only a lawyer or notary is authorized to file the Transparency Report.
Penalties for failing to file the Transparency Report within the 60-day timeline set out in the Compliance Letter may amount to up to $50,000 for relevant corporations or 5% of the assessed value of the Property, whichever is greater.
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