What counts as a foreign entity or taxable trustee under Ontario's non-resident speculation tax?

Ontario's Non-Resident Speculation Tax applies to purchases by foreign nationals, foreign corporations, and taxable trustees, and each of these is a defined category rather than a loose description. A foreign national generally means an individual who is not a Canadian citizen or permanent resident. A foreign corporation generally includes a corporation incorporated outside Canada, as well as certain Canadian-incorporated corporations that are controlled, directly or indirectly, by foreign nationals or foreign corporations, or that are publicly traded and controlled by a foreign entity in specific ways.

A taxable trustee generally refers to a trustee of a trust where at least one beneficiary is a foreign national or foreign corporation, or where the trustee itself is a foreign entity. Because the exact tests for control and beneficiary status involve technical, specific rules rather than a simple ownership percentage you can eyeball, structuring a purchase to avoid these categories is not something to attempt without careful advice.

If a purchase involves a corporation, trust, or any non-Canadian beneficial interest, confirm with a lawyer whether it falls into one of these defined categories before closing.