Business owners in British Columbia need to be aware of two important transparency initiatives: the Corporate Transparency Register (CTR) and the Land Owner Transparency Act (LOTA). These measures aim to enhance transparency and combat financial crimes.
Corporate Transparency Register (CTR)
The CTR requires private BC companies to maintain a register of individuals with significant control (ISCs) over the company. ISCs are those who own 25% or more of voting shares or shares worth 25% or more of the company's fair market value, as well as individuals with direct or indirect control over significant decision-making.
Business owners must:
- Maintain an up-to-date transparency register
- Make it accessible to authorities like the BC Registrar and law enforcement
- Update the register within 30 days of changes in control
Non-compliance can result in fines up to $100,000 for the company or $50,000 for individuals.
Land Owner Transparency Act (LOTA)
LOTA aims to increase transparency in real estate ownership by disclosing beneficial ownership of property. It affects corporate entities, trustees, and partnerships holding legal title to land.
Business owners must:
- File a Transparency Declaration when registering or transferring land in BC
- Identify beneficial owners (individuals or entities with significant control over the land)
- Keep beneficial ownership information up to date in the Land Owner Transparency Registry (LOTR).
Non-compliance can result in fines up to $25,000 for individuals or $50,000 for corporations, or 15% of the property's assessed value.
Key Considerations for Business Owners
- Integration: Ensure corporate records align with both CTR and LOTA requirements, particularly for landholding companies or businesses with complex ownership structures.
- Compliance Monitoring: Regularly review and update records to avoid penalties and ensure accurate reporting.
- Professional Advice: Seek legal and accounting support to navigate complex ownership disclosures and reporting obligations effectively.
By understanding and complying with these transparency requirements, business owners in BC can avoid penalties and contribute to a more transparent business environment.
Recognized by Best Lawyers in Canada for trusts and estates and family law, she previously chaired the Canadian Bar Association Wills and Trusts Subsection (Vancouver).
Contact Nicole by email or phone at (778) 742-5005 x216.
Heritage Trust is a leading non-deposit taking financial institution, regulated by the BC Financial Services Authority (BCFSA), a government agency of the Province of British Columbia. Heritage Trust offers caring and professional executor, trustee, power of attorney, committee, escrow and family office services to BC resident clients.
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