Sworn Statement for a Family Gift of a Used Motor Vehicle

Jurisdiction: Country: Canada | Province or State: Ontario

What is a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario?

This sworn statement is an affidavit used in Ontario when a used motor vehicle is given as a gift between eligible family members. You sign it under oath to confirm the transfer was a genuine gift. You also confirm the family relationship that qualifies the transfer for a tax exemption. The form supports the registration and ownership change at the provincial vehicle registration office.

You use this form when no money or other value changes hands. That includes no exchanges, services, or promises. It also means you do not assume any loan or lien as part of the transfer. The form records the donor, the recipient, the vehicle details, and the family relationship. It is a legal declaration. It helps the registration office approve the transfer without charging retail sales tax.

Who typically uses this form?

Parents who give a car to a child. Adult children who gift a vehicle to a parent. Spouses who move a used vehicle between themselves. Siblings who transfer a car as a gift. Grandparents and grandchildren who gift vehicles within the family. Step‑relations may qualify if the relationship falls within the defined family group. The key is that the transfer is a true gift between eligible relatives.

Why would you need this form?

You need it to claim the family‑gift tax exemption when registering the vehicle. Without it, the office treats the transfer like a regular private purchase. In that case, retail sales tax applies, based on the vehicle’s value. The form tells the office this is not a sale. It confirms the legal family relationship and the absence of consideration. It is also your sworn evidence if the transfer is reviewed later.

Typical usage scenarios

You replace your car and give your old one to your daughter. Your parents no longer drive and have gifted their van to you. You and your spouse combine ownership, or one of you removes your name and gifts your share. You give a car to your brother as a present. You inherit a used vehicle, and a family member gifts it onward to another eligible relative. In each case, the form supports the tax‑exempt transfer between qualifying family members.

The vehicle must be a “used” motor vehicle. That means it has been previously owned or registered. It can be a car, van, SUV, pickup, or motorcycle. Off‑road vehicles and trailers may also qualify if they meet class and registration rules. The vehicle should be safe and fit for registration. If you plan to plate and drive it, you may also need a recent safety inspection. The sworn statement does not replace any safety or insurance requirements.

When Would You Use a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario?

You use this form when registering a gifted used vehicle between eligible family members. The timing is simple. Complete and swear the form before you visit the registration office. Bring it on the same day you apply to change ownership.

Consider common situations. You are a parent gifting a car to your child who just got a license. You are an adult child taking over a parent’s second car. You and your spouse shift ownership for insurance reasons. You add your spouse as a joint owner with right of survivorship. You remove a spouse’s name and gift the vehicle during a separation agreement. You are a grandparent helping a grandchild with a first vehicle. You are a sibling giving your truck to your brother. You give a used motorcycle to your adult child.

Business owners should note that this form does not cover transfers to or from a business unless the business and individual are the same legal person for family purposes. The exemption is designed for transfers between individual family members. A company is a separate legal person. That means a transfer from your company to you usually does not qualify as a family gift. If a business is involved, the registration office will likely treat it as a regular sale.

Estate situations can involve this form. A used vehicle passes to a spouse, child, or other eligible relative. The executor may transfer it as a gift under the will. The recipient then uses the sworn statement to confirm the family relationship and gift status. Additional estate documents may be needed to show authority to transfer. The sworn statement covers the relationship and gift; it does not replace estate proof.

You should not use this form when any consideration is involved. If the recipient pays money, trades property, provides services, or assumes a loan or lien, it is not a gift. The tax exemption will likely be denied. You also should not use the form for transfers between friends or extended relatives who do not meet the eligibility requirements. In those cases, expect tax based on the vehicle’s value at transfer.

You also cannot use the form to correct a past taxable transfer. If tax was charged earlier, you cannot retroactively “convert” the sale to a gift. The sworn statement applies at the time of transfer. It is presented when you change ownership at the office. The official will review the form, your IDs, the vehicle documents, and any proof of family relationship.

Typical users include individual donors and recipients within a family. Lawyers and notaries often assist as commissioners. Insurance brokers may remind you to complete it before changing your policy. But as the donor or recipient, you are responsible for the truth of the declaration. You must sign the form under oath. The registration office relies on your sworn words to grant the exemption.

Legal Characteristics of the Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario

This is a sworn legal document. It is an affidavit or statutory declaration made under provincial law. You sign it under oath or affirmation before an authorized commissioner. That could be a lawyer, a notary public, or another qualified commissioner for taking affidavits. Because it is sworn, it carries legal weight. False statements can lead to fines, tax reassessments, and criminal charges.

Is it legally binding?

Yes, as a declaration of fact. It binds you to the statements you make about the gift and the relationship. It does not itself transfer ownership. Ownership passes through the vehicle permit transfer and registration process. The sworn statement supports that process by proving the gift qualifies for a tax exemption. The registration office retains the form or scans it into their records.

What ensures enforceability?

Several elements do. You sign in the presence of a commissioner who verifies your identity. You swear or affirm the truth of the contents. The form identifies the parties and the vehicle with specific details, including VIN and current odometer reading. It states the nature of the family relationship and confirms there is no consideration. The commissioner signs and applies a seal or stamp. These features make it reliable evidence.

The registration office may demand supporting proof. This often includes government‑issued ID and proof of the family relationship, like a birth or marriage record. The office may request more proof if names do not match or if the relationship is not clear. Keeping proof ready avoids delays. If the office is not satisfied, the tax exemption may be denied. You can still transfer the vehicle, but tax would apply.

General legal considerations are practical. Every current owner listed on the vehicle must consent to the transfer. If there are co‑owners, all must sign the transfer and, where required, the sworn statement. If a lien exists, you usually need the lender’s written consent to transfer. If the recipient assumes the debt, the transfer likely fails the “gift” test. Any consideration defeats the exemption.

The sworn statement must reflect reality at the time of transfer. You should not backdate or future‑date the document. If there are errors, correct them before swearing. Do not use white‑out. Strike through and initial changes, or complete a fresh form. Inconsistent VINs or names delay registration and raise compliance concerns. Keep copies of everything you sign and provide.

Finally, the statement covers tax only. It does not replace insurance, safety, emissions, or licensing requirements. The recipient must arrange insurance before driving. A safety inspection may be required to attach plates. If you only change ownership without putting the vehicle on the road, different rules may apply. The office will advise based on your situation.

How to Fill Out a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario

1) Confirm eligibility

Make sure the transfer is a true gift. No money, property, services, or debt assumption can be part of the deal. Confirm the family relationship is eligible. Typical qualifying relatives include spouse or partner, parent, child, grandparent, grandchild, and siblings. Step‑relations within those categories often qualify. In‑law relationships within those categories may also qualify. If the giver and receiver are not within the eligible group, the exemption likely does not apply.

2) Gather identification and proof

Collect valid government ID for both donor and recipient. Bring proof of the family relationship. This could be a birth record, a marriage record, or a legal name change that ties the names together. If the relationship is not obvious from your IDs, bring documents that connect the dots. For step‑relations or in‑laws, bring records that show the link.

3) Assemble vehicle documents

Have the vehicle portion of the permit (ownership) ready. Confirm the VIN, year, make, and model are clear and readable. Note the current license plate, if any. If a lender holds a lien, get written consent to transfer. If you plan to plate and drive the vehicle, arrange insurance. You may also need a recent safety inspection to attach plates.

4) Complete the donor section

Enter the donor’s full legal name as shown on ID. Include the current address, phone number, and email if the form provides space. List the donor’s driver’s license number if requested. If there are multiple donors, list each one in full. Each donor must sign. Make sure the donor’s name matches the vehicle permit.

5) Complete the recipient section

Enter the recipient’s full legal name and current address. Include contact details. If there are multiple recipients, list each one. Decide on joint ownership structure. For example, joint tenants with right of survivorship or tenants in common. Use the same names you will use on the new vehicle permit.

6) Describe the family relationship

State the exact relationship between donor and recipient. Examples: parent to child, spouse to spouse, grandparent to grandchild, or sibling to sibling. If the link is through marriage or step‑relations, say so. For example, father‑in‑law to son‑in‑law, or step‑parent to step‑child. Keep it precise and consistent with your proof.

7) Enter vehicle details

Record the VIN exactly as it appears on the vehicle and permit. Add the year, make, model, and body type. Include the color if the form asks. Record the odometer reading at transfer. If the odometer is broken or replaced, note that fact if the form allows comments. Avoid estimates unless the odometer is not readable.

8) Declare the gift and absence of consideration

Read the declaration language carefully. Confirm the vehicle is a gift with no consideration. That includes no cash, no trade, no services, and no debt assumption. If there was any value exchanged, do not use the family gift form. A false declaration can lead to penalties and tax reassessment.

9) Review for accuracy and consistency

Check names, addresses, and VIN for errors. Confirm the relationship stated matches your proof. Ensure dates are correct. Make sure the permit reflects the donor’s name. Resolve any mismatched names or addresses before you swear the statement. Small errors can cause big delays.

10) Do not sign yet

You must sign in front of a commissioner to take affidavits. Do not sign at home. The commissioner must witness your signature. Bring original ID. The commissioner will verify your identity and may ask basic questions about the form.

11) Attend before a commissioner

Both donor and recipient should attend, unless the form only requires the donor’s oath. Bringing both parties avoids questions and covers both declarations if required. The commissioner will administer an oath or affirmation. You will sign, and the commissioner will sign and apply a stamp or seal. If multiple donors or recipients exist, each must sign and be sworn.

12) Prepare schedules if needed

If the form does not have enough space for multiple parties, attach a schedule. List any extra donors or recipients with full details and signatures. Reference the vehicle’s VIN on each schedule page. The commissioner should initial or stamp the schedules to tie them to the affidavit.

13) Make copies

Keep a copy of the sworn statement for your records. Make copies of your proof of relationship and IDs, if permitted. Do not surrender original IDs. Bring originals for verification and provide copies if requested.

14) Submit with your ownership transfer

Bring the sworn statement to the registration office when transferring ownership. Also bring the vehicle permit, proof of insurance if you will plate it, ID for both parties, and proof of relationship. If a safety inspection is required to plate, bring it too. Tell the clerk you are registering a family gift transfer.

15) Pay applicable fees (but not tax)

You will still pay standard registration and plate fees. The exemption covers retail sales tax only. If the office accepts your sworn statement and proof, they will process the transfer without charging tax. If they are not satisfied, they may charge tax based on the vehicle’s value.

16) Collect the updated permit

Once processed, you will receive the updated vehicle permit in the recipient’s name. Confirm all details on the permit before you leave. Check the spelling of names and the VIN. Ask about any next steps, such as plate attachment or validation.

17) Keep your records

Retain the sworn statement, copies of proof, and the new permit. Keep them with your vehicle records. If questions arise later, your file will help you respond quickly. Good records also help with insurance and any future transfer.

Practical tips make this process smoother. Match names on IDs to the form. If you use a preferred name, also note your legal name. If your address has changed, update it before the transfer or bring proof. If the vehicle has a lien, resolve it first. Do not rely on the exemption if any value changes hands. If you are unsure whether a relationship qualifies, bring the best proof you have. Be ready to explain the family link clearly and briefly.

Common pitfalls are easy to avoid. Do not assume a loan in place of paying cash. That defeats the gift test. Do not sign before meeting the commissioner. That invalidates the affidavit. Do not round the VIN or guess the odometer. Exact data matters. Do not forget co‑owners. All owners must sign. Do not bring only digital copies of key records. Paper originals or certified copies work best for identity and relationship proof.

If you follow these steps, your transfer should be quick and clean. The sworn statement does one job. It proves a genuine family gift of a used vehicle. Fill it accurately. Swear it properly. Bring the right supporting documents. You will save time and avoid unnecessary tax.

Legal Terms You Might Encounter

Affidavit or sworn statement means a written statement of facts you declare to be true while under oath. This form is an affidavit. You sign it only in front of a person authorized to administer oaths, and you confirm that the vehicle is a true family gift with no payment.

Affiant or deponent is you, the person making the sworn statement. If you are the recipient, you swear that you received the vehicle as a family gift. If you are the donor, you swear that you gave it as a family gift. The form may require one or both to swear. Follow the form’s signature instructions exactly.

Commissioner for oaths or a commissioner for taking affidavits is the official who witnesses your signature. They check your ID, ask you to swear or affirm the truth, and then sign and stamp the form. You must sign in their presence. You cannot commission your own form.

Notary public is also authorized to administer oaths and can commission this form. Some notaries are also commissioners. Either role can witness your signature if they are authorized to do so. Their stamp or seal will appear in the “commissioner” section.

Consideration means value exchanged in a transaction, such as money, goods, or services. A true gift has no consideration. If you give or receive money, even a small amount, it is not a gift. Indicating any payment on the form can change the tax outcome.

Eligible family member refers to the relationships recognized for a family gift transfer under this process. The form asks you to state the relationship between donor and recipient. Use the exact relationship requested on the form. If your relationship is not listed, the transfer may not qualify as a family gift.

Used motor vehicle means a previously owned vehicle. The form applies to a used vehicle, not a new one from a dealer. You will identify the vehicle by its make, model, year, and vehicle identification number.

Vehicle identification number (VIN) is the unique 17-character code that identifies the vehicle. The VIN on the form must match the VIN on the ownership permit and on the vehicle. Any mismatch can stop the transfer.

Odometer reading is the mileage or kilometers shown on the vehicle’s odometer at the time of transfer. Enter the reading as it appears. If the odometer is broken or has rolled over, state that in the space provided if the form allows, or be prepared to explain during the transfer.

Perjury or false declaration refers to knowingly making a false statement under oath. Signing a false affidavit is serious. It can lead to fines, charges, and reversal of the vehicle transfer. Tell the truth, even if it complicates the process.

Transfer of ownership means changing the registered owner of the vehicle from the donor to the recipient. The sworn statement supports the transfer by confirming the family gift status. It is not, by itself, the ownership change. You still complete the transfer at the licensing office.

Safety inspection certificate is a document issued by a licensed inspection station that confirms the vehicle meets safety standards. The licensing office may require it to register and plate the vehicle. The sworn statement does not replace any safety requirement.

Proof of identity means original, valid ID documents that confirm who you are. The commissioner will review your ID before witnessing your signature. The licensing office will also require acceptable ID for the transfer. Names must match the form and ownership documents.

FAQs

Do you need to pay tax on a gifted car?

If the transfer qualifies as a family gift under the form’s rules, you generally do not pay retail sales tax on the transfer. You still pay any applicable licensing and registration fees. If any money changes hands, it is not a gift, and tax may apply.

Do both donor and recipient need to be present to sign?

You do not both need to appear at the same time unless a commissioner requires it. Each person can sign their section before a commissioner separately. Make sure the same vehicle details appear on both parts and that dates are consistent. Bring proper ID to each commissioning.

Do you need the vehicle’s safety inspection for a family gift transfer?

A sworn statement does not replace a safety inspection. If you plan to plate or drive the vehicle, you may need a valid safety inspection certificate at the time of registration. Check whether the vehicle qualifies for any safety inspection exceptions in your situation.

Can you gift a vehicle that still has a loan or lien?

You can only gift what you have the right to transfer. If a lender has a lien, you generally need to clear it or get lender consent before transfer. The licensing office may refuse to register a vehicle with an active lien unless the lienholder confirms release.

Do you need insurance before completing the transfer?

If you intend to drive the vehicle immediately, you need active insurance in the recipient’s name to plate and operate it. Contact your insurer in advance. Have your policy details ready when you visit the licensing office.

Can you gift a vehicle to a sibling or an in-law?

Eligibility depends on the relationships recognized on the form. Read the relationship options printed on the form. If your relationship is listed, you can use the sworn statement. If not, you can still transfer the vehicle, but the gift may not qualify for a tax exemption.

What if the odometer is inaccurate or broken?

Record the reading as shown and note any discrepancy if the form allows. Be honest. An inaccurate odometer can affect value and disclosures. The licensing office may request additional information if the odometer status is unclear.

How long is the sworn statement valid?

You should use the sworn statement promptly. Delays can raise questions if dates do not align with the transfer. Aim to complete the transfer soon after commissioning. If too much time passes, the licensing office may ask you to provide a freshly commissioned statement.

Can you use one sworn statement for multiple vehicles?

No. Complete a separate sworn statement for each vehicle. Each vehicle has a unique VIN and details. Mixing vehicles on one form will cause rejection.

What if there are two donors or two recipients?

List all owners consistent with the ownership permit. If multiple owners are gifting or receiving, each must be correctly named, and each may need to sign. Ensure all signatures are commissioned properly.

Do you need to keep a copy?

Yes. Keep a complete copy for your records. It helps if questions arise later, such as during an insurance claim or if the licensing office seeks clarification.

Checklist: Before, During, and After the Sworn Statement

Before signing: gather information and documents

• Vehicle details: year, make, model, VIN, body type, color.
• Current odometer reading.
• Ownership permit (both sides) for reference.
• Proof of identity for each signer.
• Proof of address for the recipient, if required at registration.
• Relationship evidence, if requested (for example, a document that shows the relationship).
• Any lien release or lender consent, if a lien exists.
• An insurance plan for the recipient if they plan to drive right away.
• Safety inspection certificate, if you plan to plate the vehicle now.
• A clean, legible copy of the sworn statement form.

During signing: verify each section carefully

• Names: spellings match ID and the ownership permit. Include all middle names if used on ID.
• Addresses: current residential addresses, not mailing addresses, unless instructed otherwise.
• Relationship: choose a listed relationship exactly as written on the form.
• VIN: enter all 17 characters, checking letter/number confusions (O vs 0, I vs 1).
• Vehicle details: year, make, model, and body type match the ownership permit.
• Odometer reading: enter digits and unit (km) as shown on the vehicle.
• Gift statement: Confirm no consideration or payment is present in the transaction.
• Dates: use the correct date of signing for each signer; avoid pre- or post-dating.
• Signatures: sign only in the presence of the commissioner.
• Commissioner’s section: confirm name, appointment, signature, and stamp/seal are complete.
• Cross-outs: avoid them. If an error occurs, start a new form for clarity.

After signing: filing, notifying, and storing

• Complete the ownership transfer at a licensing office with all required documents.
• Bring the sworn statement, ownership permit, ID, insurance, and safety inspection certificate if needed.
• Remove the donor’s plates from the vehicle. Plates stay with the owner, not the vehicle.
• Arrange plates for the recipient or transfer eligible plates as allowed.
• Update insurance: donor cancels or removes the vehicle; recipient adds the vehicle.
• Pay any required fees at the licensing office.
• If the office needs more information, provide it promptly to avoid delays.
• Store copies of the sworn statement and transfer receipt in a safe place.
• Update your address on driver and vehicle records if needed.
• If an error is discovered, prepare a corrected sworn statement and resubmit as instructed.

Common Mistakes to Avoid

Don’t forget the commissioner’s signature and seal.

• Consequence: the form is invalid without proper commissioning. The licensing office will reject the transfer and you will have to return with a properly commissioned statement.

Don’t list any payment if this is a true gift.

• Consequence: any stated payment turns it into a sale. You may owe tax based on the vehicle’s value and face delays or refusals during transfer.

Don’t mismatch the VIN across documents.

• Consequence: a single wrong character stops the transfer. You may need to recommission corrected forms and return to the licensing office.

Don’t sign the form before meeting the commissioner.

• Consequence: pre-signed forms are not valid. You will need to re-sign in front of a commissioner and may lose time and commissioning fees.

Don’t rely on unreadable or altered entries.

• Consequence: corrections, smudges, or white-outs can cause suspicion or rejection. Start a fresh, clean form when errors occur to keep the process smooth.

What to Do After Filling Out the Form

File the transfer at a licensing office

• Bring the sworn statement, ownership permit, valid ID, proof of insurance, and a safety inspection certificate if needed to plate the vehicle.
• Pay any required registration and plate fees.
• Confirm the new registration reflects the recipient’s full legal name and address.
• Ask for and keep the transfer receipt.

Manage plates and permits

• Remove the donor’s plates; they do not stay with the vehicle.
• If eligible, transfer plates according to the rules that apply to your situation.
• If new plates are needed, the recipient will purchase them during registration.

Update insurance

• Donor: Cancel or remove the vehicle from your policy effective the transfer date.
• Recipient: add the vehicle to your policy before you drive. Provide the VIN and other details to your insurer.

Handle liens or lender issues

• If a lien existed, make sure a release is recorded. Keep a copy of the lien release.
• If the lender required anything for the transfer, confirm that those steps are complete.

Confirm emissions or inspection steps, if any

• If any emissions or inspection requirement applies to your vehicle, complete it and keep proof.

Store records securely

• Keep a copy of the sworn statement, the transfer receipt, the registration, and any related documents.
• Keep service and inspection records for future reference or resale.

Correcting mistakes after filing

• If you discover a material error (for example, a wrong relationship or VIN), prepare a new sworn statement with the correct details.
• Return to the licensing office with the corrected documents.
• Avoid partial fixes. Use a clean form and have it commissioned again.

If the gift falls through

• If the vehicle will not be transferred, do not use the sworn statement. Destroy it or mark it void.
• If a transfer already occurred, reverse steps only as allowed by the licensing office. You may need a new transfer with proper documents.

Timing tips

• Aim to complete the transfer soon after the sworn statement is commissioned.
• Consistent dates across the sworn statement and transfer documents help avoid questions.

Communication and confirmation

• Keep the donor and recipient aligned on dates, insurance start times, and who will visit the licensing office.
• Confirm that names and addresses match the ID to prevent counter issues.

Final review before you go

• Check the packet: sworn statement, ownership permit, ID, insurance proof, safety inspection certificate if needed, and payment method for fees.
• Recheck VIN, names, and relationship one last time. A two-minute review can save a return trip.