A BC realtor faked a principal residence claim for years and the CRA took notice
A Vancouver realtor was handed a nine-month conditional sentence and fined more than $100,000 after the Canada Revenue Agency (CRA) found she had falsely presented a tenant-occupied British Columbia property as her principal residence for several years, court records show.
Thi Nhan Nguyen, also known as Lynn Nguyen, of Vancouver, British Columbia, was sentenced on August 25, in the Provincial Court of British Columbia in Robson Square.
Nguyen pleaded guilty to one count of tax evasion under the Income Tax Act and was ordered to pay a total fine of $103,785, equal to the full value of the federal income tax she had evaded.
The conviction follows a CRA investigation that found Nguyen wilfully failed to report a taxable capital gain from the sale of a Vancouver residential property she did not legitimately occupy.
Read more: BC real estate agent fined $200k for exploiting affordable housing program
A years-long scheme to conceal rental income
Between January 6, 2012, and March 16, 2017, Nguyen engaged in a calculated scheme to make the property appear to qualify as her primary home. She used the address for correspondence and collected mail there to reinforce the claim.
In reality, the property was tenant-occupied from the time she became its registered owner in April 2012.
In January 2015, Nguyen disposed of her interest in the property, selling a 50% share to a purchaser and transferring the remaining 50% to a related party. She then failed to disclose the transaction to her tax preparer when filing her 2015 income tax return, a key step in the concealment.
The case didn't close there. During a subsequent CRA audit, Nguyen continued to assert that the property met the legal definition of a principal residence.
In 2017, she provided misleading information and documents through a representative in direct response to CRA information requests, according to court records.
FSRA has proposed enforcement action against K. Banx Mortgages Ltd. and three associated licence holders over allegations tied to a mortgage transaction, suitability concerns, and record-keeping practices.https://t.co/GulBS0ipoB
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 19, 2026
What the conviction means for mortgage professionals
For mortgage brokers in British Columbia and across Canada, the case is a pointed reminder of where regulatory and legal risk now concentrates. The principal residence exemption under the Income Tax Act allows eligible Canadians to shelter capital gains from the sale of a designated primary home. However, the CRA has made clear it is actively pursuing those who abuse the provision, particularly where documentation and occupancy patterns conflict.
Mortgage professionals working in British Columbia's high-value residential market should be alert to clients presenting ownership structures involving tenant-occupied properties, partial interest transfers, or related-party transactions that may not align with a genuine principal residence claim.
The CRA has signalled it uses occupancy history, correspondence records, and third-party documents to identify discrepancies.
Understanding how the CRA is cracking down on principal residence exemption abuse has become critical for brokers navigating due diligence on refinance and purchase files where claimed exemptions affect a client's tax exposure.
The agency said in its announcement that tax evasion carries significant consequences: criminal charges, prosecution, court-imposed fines, jail time, and a criminal record.
It added that it will continue to pursue evasion using all tools available to ensure that only those entitled to exemptions and benefit programs receive them.
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