A Saanich woman is facing a six-figure bill under British Columbia’s speculation and vacancy tax – despite having lived in her home full time for the past 12 years.
Maureen Washington, a well-known jazz musician and longtime Broadmead resident, says she was blindsided when the Ministry of Finance informed her she owed $110,076.91 in unpaid taxes, late filing penalties, and interest.
“I was shocked,” Washington said. “This is my home. I’ve raised my kids here. I’ve never rented it out, never left it empty. I thought this tax was for foreign buyers, not people like me.”
The speculation and vacancy tax (SVT), introduced in 2018, is designed to target property owners who leave homes empty in B.C.’s major urban centres.
According to a spokesperson from the Ministry of Finance, it’s a self-reporting tax that applies based on how a residential property is used, the residency of the owner, and where their income is declared. The stated goal is to discourage housing speculation and increase housing availability.
For Washington, the problem didn’t stem from whether she lived in her home – it came down to how much income she reported.
After receiving a notice in 2023, she called the ministry and admitted she hadn’t filed taxes in several years.
She says that call triggered a provincial audit, which quickly snowballed.
“They said because I reported a low income and live in an expensive neighbourhood, they needed to prove I wasn’t living beyond my means,” Washington said.
Washington submitted letters from her pastor and neighbours.
But the province told her those weren’t enough. They wanted five years’ worth of bank statements, tax returns, house and car insurance records, and explanations for every transaction over $200.
“I sent in what I thought they meant – my notices of assessment,” Washington said. “But they came back saying I hadn’t complied and hit me with the full tax bill. It felt like they’d already decided I was guilty.”
The Ministry of Finance says that when a homeowner does not submit the requested documentation – or when the information is incomplete – the ministry may proceed with an assessment.
In cases of insufficient evidence, the tax applies by default.
For Washington, the default decision came with devastating consequences: a lien for $50,000 was placed on her property in April, and she’s now in the middle of an appeal.
“Every day I wake up and wonder if I’m going to lose my house,” Washington said. “It’s mentally exhausting. It feels like the burden is on me to prove I’m not lying – when all I’ve done is live in my own home.”
The Ministry of Finance says it doesn’t comment on specific cases but reiterated that “the SVT applies to individuals based on their use of the property and their income reporting.”
According to their website, most British Columbians are exempt, and only a small portion of residents – about one per cent – end up paying the tax.
Still, Washington believes the system is casting too wide a net.
She shares her home with five adult children and a son-in-law, who all pitch in for expenses. She says e-transfers they’ve sent her for groceries or bills were flagged by the province as undeclared rental income.
“They asked if I had formal loan agreements with my kids,” Washington said. “It’s ridiculous. I even had to explain a $50,000 gift from my dad – and prove he’s my father.”
She also manages her 85-year-old mother’s banking, which she says added to the confusion. Several transactions tied to her mom’s account – which she says never benefited her personally – were also red-flagged.
“I felt totally exposed,” Washington said. “They wanted five years of everything. I don’t even remember what I bought last month, let alone in 2019.”
The ministry says the system is designed to be fair, and that owners who receive assessment letters are encouraged to work directly with auditors to clarify any issues.
Washington acknowledges her caseworker during the appeal has been more understanding, but says the process still feels punishing – especially for people with limited income or those unfamiliar with navigating audits.
“This whole thing has opened my eyes,” she said. “There are probably a lot of people who just pay it to make it go away – whether they owe it or not.”
Her message to others?
“This isn’t just happening to me,” Washington said. “It’s happening to seniors, single moms, people without accountants. People who don’t even realize the province can decide they’re speculating – even when they’ve never left their home.”
The Ministry of Finance noted that each year, residential property owners in taxable areas receive declaration letters outlining how to complete a declaration and highlighting the March 31 deadline. Owners must complete their SVT declaration every year, even if they're eligible for an exemption.
