You most likely don't even have to do that, just lie, the likelihood of being audited is very low, and if you did get busted, it would likely be a couple thousand dollar fine (we can only speculate, as they magically never catch anyone).

http://www.theglobeandmail.com/news/politics/cra-launches-re...

"“Management has known of this issue for at least three years but did not want to pursue the real-estate flips because most of the auditees were Chinese in descent. They were scared of being racist … I can confirm this fact, based on meetings held,” the auditor said."

Of course, this is all being rectified as we speak, the government assures us. ;)

Sure. You might be able to get out of the tax just by living in the house. The law is just meant to be for people who are buying property as an investment with no intention of living in the city.