What @Ashish Acharya mentions is true for many taxpayers but it can be taxable if the property is owned in a corporate entity. 

If you compare two taxpayers side by side, one who pays the taxes each time they sell and one who defers each time they sell, the one that defers their taxes each time will have a substantially higher net worth later in life. 

The way distributions are taxed and how deductions for things like depreciation are treated in relation to one’s original basis is very complicated and specific to each tax payer’s individual tax situation.

Link to the code: https://www.law.cornell.edu/uscode/text/26/1400Z-2Code Language:IRC Sect. 1400-2(c) In the case of any investment held by the taxpayer for at least 10 years and with respect to which the taxpayer makes an election under this clause, the basis of such property shall be equal to the fair market value of such investment on the date that the investment is sold or exchanged.This often confuses people and they think that any investment qualifies for the 10-year exclusion.

From Treas Reg §1.121-1(b)(2):...In addition to the taxpayer's use of the property, relevant factors in determining a taxpayer's principal residence, include, but are not limited to—(i) The taxpayer's place of employment;(ii) The principal place of abode of the taxpayer's family members; [Empasis Added](iii) The address listed on the taxpayer's federal and state tax returns, driver's license, automobile registration, and voter registration card;(iv) The taxpayer's mailing address for bills and correspondence;(v) The location of the taxpayer's banks; and(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.Always good to work with your CPA on strategies such as this. 

Once the election is made, it is irrevocable unless there is a material change in the taxpayer's facts and circumstances.

Does the CRA have to provide substantial evidence to a judge that the taxpayer is an alleged tax evader and get the okay to freeze assets, or can they just do it with a flick of their wrists?

Tax payments for property tax won't be known until it sells.

Also keep in mind when you sell an investment property, most taxpayers pay around 30%-40% in taxes.

These sections provide that investors involved in a 1031 Exchange transaction who sell California property and purchase NON-California Replacement Property will be required to file an annual information return with the California Franchise Tax Board (FTB), reporting this NON-California property.The California taxes that were previously deferred will be due when and if taxpayers sell their new properties and elect to take their profits rather than continuing to defer taxes through another 1031 Exchange.