This article continues our series on the Speculation and Vacancy Tax (“SVT”), focusing on how property owners can navigate the appeal process if faced with a tax assessment or reassessment. As the SVT expands to more jurisdictions across British Columbia, understanding appeal rights has become increasingly important.
The SVT is an annual tax targeting residential property owners—both foreign and domestic—who own homes in designated areas and neither occupy them as a principal residence nor rent them long-term. While many owners qualify for exemptions, mistakes in annual declarations or misunderstandings about exemption criteria can result in unexpected assessments. These assessments can be significant, amounting to 0.5% of the property’s assessed value, set to increase to 1% for domestic owners and 3% for foreign owners in the 2026 taxation year.
Declarations and Compliance Reviews
Every year, property owners in applicable regions must file an SVT declaration indicating either their liability or an exemption. The Ministry of Finance (the “Ministry”) reviews these declarations and may initiate a compliance review. During these reviews, the Ministry often requests documents to substantiate the claimed exemption. For example, if an owner claims the rental exemption, they may be required to provide tenancy agreements and bank records that demonstrate rental income.
If the Ministry is satisfied with the documentation, it will confirm the assessment, and the process ends there. However, mistakes in declarations, insufficient evidence, or failure to respond to Ministry inquiries can lead to a reassessment, revocation of an exemption, and even penalties.
If you’re subject to a compliance review and unsure how to respond, consulting a lawyer experienced in dealing with the Ministry can be beneficial. Properly preparing and submitting evidence may avoid the need for a formal appeal altogether and save you money in the long run.
Appeals to the Minister
If a reassessment is issued and the taxpayer believes it’s incorrect, the next step is to appeal to the Minister of Finance. There are three key considerations for an appeal to the Minister:
- Tax Must Still Be Paid: Filing an appeal does not pause the obligation to pay the assessed tax. Interest continues to accrue, so where possible, pay the amount due during the appeal. If successful, the Ministry will refund the payment.
- Strict 90-Day Deadline: Appeals must be submitted within 90 days of the date on the assessment or reassessment notice. Failure to meet this deadline forfeits the right to appeal.
- Grounds for Appeal: Appeals must be based on either the owner’s qualification for an exemption or a technical error in the reassessment. For instance, if the proper documents weren’t submitted during the compliance review, the appeal is the final chance to demonstrate eligibility.
To initiate the appeal, owners must submit the “Appeal to the Minister” form (FIN 298) or provide a written letter explaining the reasons for the appeal, along with supporting evidence. Legal advice is strongly recommended at this stage. The Ministerial appeal is limited in scope and represents the final opportunity to properly present evidence and argument that could reverse or reduce the assessment.
Once filed, the appeal is reviewed by the Ministry. The process may take several months, depending on the complexity. Some appeals require back-and-forth with an appeals officer, while others may be resolved without further communication. Prompt and professional engagement with the Ministry is essential to ensure the greatest chance of success.
Judicial Review
If the Minister’s decision upholds the assessment, a further challenge is possible through a judicial review in the BC Supreme Court. However, this is not an appeal on the merits. Judicial review is only available on narrow grounds, such as a mistake of law or procedural unfairness. Given the complexity of administrative law, it is highly recommended to have legal representation if pursuing this route.
Conclusion
The SVT appeals process provides property owners with a pathway to challenge assessments; however, the system is strict and time sensitive. Proper record-keeping, clear communication with the Ministry, and timely legal advice can make the difference between success and failure. At Pushor Mitchell, we regularly assist clients through the SVT audit and appeal process, including representing them in appeals to the Minister and advising on judicial review options.
If you’ve received an SVT assessment, are facing a compliance review, or are considering a judicial review, contact Kyle Ramsey at [email protected] for guidance regarding the Speculation and Vacancy Tax.
