How big is big enough 32 000 sqft Mansion in KL Malaysia

This wild, architecture, and ethnic diversity is the backdrop for a futuristic yet traditional house that is as eclectic as KL itself. Parisian interior and Patrick Jouin and partner Sanjit Manku, a Kenyan-born Canadian architect, designed 32,000-square-foot residence and reception suites for three generations of a prominent Chinese-Malaysian family. (Jouin recently split his firm into two entities: Agence Jouin Manku, overseeing interiors and commissions, and Patrick Jouin ID, focused on Commanding a nearly 1-acre hillside perch in a posh inner suburb, the house tries to minimize—visually and functionally—the impact of a program that’s nothing

short of gargantuan.

Harmonized tax would hit renovations, resales

Harmonized tax would hit renovations, resales
Bob Aaron in Legal

The already battered real estate industry had reason for concern when Premier Dalton McGuinty said last month that "we owe it to ourselves to take a good, long hard look" at harmonizing the GST with the Ontario provincial sales tax.

In his column in this section on Jan. 31, Stephen Dupuis, president of the Building Industry and Land Development Association, pointed out that buyers of new homes would be hit particularly hard if Ontario harmonized the PST with the federal GST.

On a $350,000 new home, he wrote that the consumer would have to pay an additional $17,920. But it's not just buyers of new homes who would be affected by a merging of the two taxes. Buyers and sellers of resale homes would also be hurt because a harmonized tax would apply to many services that are currently exempt from PST – including legal fees, real estate agent commission, renovation services, land survey reports, home inspections, landscaping and house cleaning services. Also affected would be the cost of labour for installations or repairs, including additions, kitchen renovations, driveways, roads, fences, swimming pools and patios.


Assuming no change in the provincial sales tax rates, the seller of a $350,000 resale home would get hit with an additional $1,400 in tax on a real estate agent's 5 per cent commission, plus a new 8 per cent provincial tax on moving expenses, legal fees, accounting and bookkeeping fees, renovations, painting and other services which are currently exempt.

I agree with Frank Giannone, president of the Ontario Home Builders' Association, who calls harmonization a "poison pill" for housing. It would also have a serious impact on access to justice for ordinary Ontarians as their legal fees would jump an additional 8 per cent.

Of course, none of this matters to the Ontario Chamber of Commerce and other business groups who are pushing for harmonization. According to chamber chairman Len Crispino, if the taxes are blended, Ontario business stands to save an estimated $100 million. That saving would be dumped onto the wallets of hard-hit Ontario consumers.

Toronto home buyers have still not recovered from the imposition of the "Miller bite" land transfer tax last year. In a market where the volume of home sales has dropped by almost half over the first month of 2008, and house prices have softened considerably, the last thing Ontario needs is a new 8 per cent tax on legal fees, agent commission and other costs related to the purchase and sale of new and resale homes.

The home renovation industry could also be badly affected by a harmonized tax. In a pre-budget submission to the Minister of Finance last month, the Ontario Home Builders' Association noted, "The renovation industry is already plagued by the growing underground economy with the GST acting as the catalyst for the `cash deal'. Many legitimate renovation businesses would be in serious peril if they were to add an additional 8 per cent in PST onto their quotes when competing with the black market."

In case anyone thinks that the chances of a harmonized PST and GST are somewhat remote, they have only to look at the website of the Canada Revenue Agency to see that the Ontario Ministry of Finance and the Canada Revenue Agency have already teamed up to offer dozens of joint seminars on a harmonized sales tax all across the province throughout 2009. The effort and cost put into creating these seminars is a clear indication that harmonization is in the cards.

The last word on harmonization goes to Toronto real estate guru Barry Lebow, who is a land economist, appraiser, arbitrator and educator with 40 year's market experience. When I asked him what he thought about tax harmonization, he replied, "I hate the idea as a small businessman and as a professional. Harmonization only works well for singing groups!"

Bob Aaron is a sole practitioner at the law firm of Aaron & Aaron in Toronto and a board member of the Tarion Warranty Corp. Bob specializes in the areas of real estate, corporate and commercial law, estates and wills and landlord/tenant law. His Title Page column appears Saturdays in The Toronto Star and weekly on Move Smartly. E-mail bob@aaron.ca

The leaks in the plan to fix my leaky roof

BUDGET 2009: HOME RENOVATION TAX CREDIT

DEREK DeCLOET

·           January 29, 2009

Good news! My roof is leaking. We noticed how bad it was getting last fall, when it rained and bits of plaster began to flake off the ceiling in the smallest bedroom upstairs. Lately, the problem hasn't gotten any worse, perhaps because Toronto is locked in a new ice age.

Assuming the glaciers retreat by spring, though, there's going to be trouble overhead. So was I ever glad to see Finance Minister Jim Flaherty's new temporary Home Renovation Tax Credit (HRTC). It will give a 15-per-cent tax credit, up to $1,350, on any home fix-it project that is "enduring in nature" and costs more than $1,000. What's the definition of "enduring in nature"? It appears to be anything that lasts longer than one year.

My new roof will certainly last longer than a year, unless I attempt the work myself, in which case it will take eight months to finish and will be leaking again three weeks thereafter. Luckily, I've already lined up a nice young man from Newfoundland to handle the job. By my calculations, the credit will save me $750 in taxes, based on his quote of roughly $6,000.

Thank you, Mr. Flaherty - and you too, Michael Ignatieff, for ensuring the budget will pass before the melting season begins. As tax policy, it is ridiculous. But the Commons is going to take care of my house. Why complain?

The Newfoundland kid did say he'd give a price break if I paid in cash. In that case, I'd presumably save $300 in GST. I don't want to give his business secrets away, but in total, I'd save more than $750.

And the money would be in my pocket today, not next year at tax time, which means I could go out and, you know, stimulate the economy when it's really needed. Of course, I'd never abet such a scheme to deprive the federal treasury of even a tiny portion of its rightful $225-billion in revenue. Who would? It's morally wrong, and that's why home renovations in Canada are never, ever done under the table.

It's a certainty that thousands of others will be taking up Mr. Flaherty on his generous offer to subsidize the home repairs they were planning to do anyway. And it's an equally sure thing contractors, painters and roofers will jack up their estimates accordingly, to claim a piece of the tax break for themselves. Maybe the Newfoundland kid will now say his quote is no longer valid. Those Newfoundlanders aren't dumb. They re-elected Danny Williams, you know.

Anyway, it's a quite a change from the Finance Minister who once declared that the federal government is "not in the pothole business." Maybe not on roads and highways, but if the pothole is in your driveway, Ottawa is pleased to assist. Driveway resurfacing is mentioned specifically in the budget as being HRTC-eligible. If you put down new sod, that's also eligible for a tax break, even if your teenage son tears it up practising his golf swing. But a new washing machine is not "enduring" enough.

If you lay a new carpet, that's worthy of a tax credit. But if you clean an existing carpet, it's not. What about a throw rug? The budget is not clear, but you've got to believe that someone, somewhere in the Department of Finance is considering the revenue implications of throw rugs versus carpets. Ah, well. The tax gurus need something to do, now that they've settled that bruising debate over the GST status of Timbits.

The most hilarious part isn't the arcane rulebook. It's the "examples" Finance officials have helpfully written to illustrate how the tax credit works. On page 129, Sally and Ed decide to replace their windows and insulation, and get tax relief of $1,350. Maybe next time they should inject some reality: "Sally and Ed decide to renovate their kitchen. After three months of arguing about it, Ed moves into the basement. The paint he buys to brighten his dismal new 'bachelor pad' is eligible for a tax credit, but the used couch is not."

And what will be the tax cost of all this hammering and painting and deck building and stimulating? About $3-billion over the next 14 months, Finance says. That's a lot of money, but it's nothing compared to the total cost of all the other exemptions and credits that governments have been inventing for years to suck up to this interest group or that industry.

Our tax system is riddled with these. Ottawa gives credits and deductions for buyers of textbooks, for tools for tradespeople and apprentice mechanics, for transit passes, for interest on student loans, for kids' soccer camp fees, for investors in speculative mining shares, and on and on. Liberal and Conservative governments alike are both at fault. Wonder why Mr. Flaherty can't afford to do more with income tax cuts? This is a big reason.

Many tax credits are legitimate. Who could seriously argue against giving a break for the cost of caring for young children, or the disabled, or educating university and college students? Those are in the public interest.

Fixing my roof is not. But I'll take the money anyway. Thanks again, Minister.