An Indo-Canadian man labeled a serial property flipper has been fined more than $2 million for tax evasion but avoids jail time after a conditional time imposed by the court. Balkar Singh Bhullar, 67, pleaded guilty in August 2023 to one count of tax evasion under the Income Tax Act after failing to report almost $7.5 million in income from flipping homes. Bhullar has been sentenced in provincial court to a conditional sentence and fines of more than $2.1 million. A Canada Revenue Agency (CRA) investigation showed Bhullar failed to report $7,485,246 in taxable income for the years 2011, 2012 and 2014.

By DESIBUZZCanada Staff

RICHMOND – An Indo-Canadian man labeled a serial property flipper has been fined more than $2 million for tax evasion but avoids jail time after a conditional time imposed by the court.

Balkar Singh Bhullar, 67, pleaded guilty in August 2023 to one count of tax evasion under the Income Tax Act after failing to report almost $7.5 million in income from flipping homes.

Bhullar has been sentenced in provincial court to a conditional sentence and fines of more than $2.1 million.

A Canada Revenue Agency (CRA) investigation showed Bhullar failed to report $7,485,246 in taxable income for the years 2011, 2012 and 2014.

The income was from assignment fees earned from flipping 14 properties between Jan. 1, 2011 and Dec. 31, 2014, thereby allowing him to evade $2,153,394 in federal Income taxes, according to a news release from the CRA.

Assignment fees are paid for the right to purchase a property, in which a contract’s rights and obligations are transferred from one buyer to another.

Bhullar was sentenced on Dec. 19 in B.C. Provincial Court (Robson Square) to a conditional sentence of two years less a day and a fine of $2,153,397, matching the amount of unpaid federal income tax.

The CRA says in a statement that it has made “significant progress” uncovering and addressing tax cheating in the real estate sector.

A new home flipping tax will come into effect in B.C. on Jan. 1, with the tax of up to 20 per cent applying to homeowners who sell properties within two years of buying.

A statement from the Ministry of Finance says it’s estimated about 4,000 properties will be subject to the tax in 2025 and all revenue collected from the tax will go toward housing programs.

B.C.’s Finance Minister Brenda Bailey says in the statement that measures like the home-flipping tax aim to ensure there are more affordable homes for buyers and renters and discourage speculative investors from buying houses for a quick profit.

The B.C. Real Estate Association has criticized the tax, saying there is a “significant risk” it will cause sellers to delay listing their homes, lowering resale housing supply and tightening market conditions.