Service des finances

A citizen sells his building to a company which ultimately does not pay off the purchase price. The building had been given as collateral. The plaintiff takes legal action in order to recover his building for cause of non-payment. The Court rules in his favor: he reclaims ownership of the building.

Following this ruling, Ville de Montréal claims a property transfer tax of approximately $36,000 on the basis that a property transfer had occurred. The citizen disputes this invoice, adding that he had already paid the transfer tax when he initially purchased the building.

After  thorough enquiry and legal research, the OdM considers that, in this particular case, the building’s trade-in does not constitute a “property transfer” under the applicable legislation: therefore, the property transfer tax should not have been charged.

The Ombudsman issues a RECOMMENDATION in that respect. The Service des finances accepts it and cancels the invoice.