Audit process for the speculation and vacancy tax

Anyone who has declared for the speculation and vacancy tax may be audited.

On this page

• Audit process overview
• What happens during an audit?
• Assessment period waiver
• What happens after an audit?

Audit process overview

Generally, you may be audited up to six years from either the date of your original Notice of Assessment or the tax due date for the applicable year, whichever is earlier.

If you did not declare for the calendar year, or there was a misrepresentation or fraud in your declaration or other information provided, the audit deadline does not apply.

Audits are routinely conducted to ensure:

• Exemptions and tax credits have been claimed correctly
• Taxes have been paid correctly

If your speculation and vacancy tax declarations are selected for an audit, your file will be assigned to an analyst who will advise you what documentation is required. 

If you have questions about your audit case, contact the analyst assigned to you directly. You can find the analyst contact information on any written correspondence from the Province. 

When requested, you will be required to provide us with all information necessary. The Speculation and Vacancy Tax Act provides us with the authority to demand information, production of records, or written statements. You will receive a letter specifying the amount of time you have to respond.  

Once an audit review on your account has begun, you may be unable to make changes to your declaration.

What happens during an audit?

During a typical audit, you can expect us to:

• Review your records 
• Ask you for information about something that may be missing from your declaration
• Discuss issues of interpretation that may arise from the audit
• Work with you to ensure the audit is completed in a timely manner
• Work with you to resolve any concerns you have as quickly as possible
• Safeguard your records without compromise

You should keep all supporting documents for six years after you submit your declaration.

Assessment period waiver

You may voluntarily choose to extend the assessment period through a waiver to allow more time to resolve specific issues, such as:

• Providing sufficient time for the completion of an audit
• Allowing additional time to improve the accuracy of your assessment by gathering more information or having further discussions before an assessment is finalized

Waiver of Assessment Period

Use the Waiver of Assessment Period (FIN 559) (PDF, 180KB) to extend the assessment period beyond the standard six-year limit for the speculation and vacancy tax.

Note: Ensure you submit the Waiver of Assessment Period form before the expiration of the normal six-year reassessment period.

Notice of Revocation of Waiver

Use the Notice of Revocation of Waiver (FIN 565) (PDF, 180KB) to revoke a previously granted wavier of the assessment period.

Note: The revocation will take effect six months after the notice is submitted.

How to submit the form

• Securely attach online (recommended)
  Scan your completed form and attached it to your speculation and vacancy tax account through eTaxBC
   
• By email
  Scan your completed form and email it directly to the representative assigned to your file
   
• ​By mail
  Mail your completed form to:

Ministry of Finance
Property Taxation Branch
PO Box 9472 Stn Prov Govt
Victoria, BC V8W 9W6

What happens after an audit?

When the audit is complete, we will:

• Review and explain the results
• Notify you if more tax is owed (or you are entitled to a refund)
• Make you aware of your options if you disagree with the results

If the audit determines you owe more tax, we will send you a Notice of Assessment that shows the balance owing. If you have questions about the notice or how it was determined, contact the analyst assigned to your case.

If we do not receive requested information within the deadline provided and cannot confirm your eligibility for the exemption(s) you claimed, a final letter summarizing our findings, a Notice of Assessment and a Statement of Account showing your outstanding balance, including any applicable interest or penalties will be provided to you.

If you believe the tax was applied incorrectly in your circumstance, you may be able to appeal to the minister.