Has anyone ever heard of a person losing their property?

Yes, about 15 years ago, a BC disabled taxpayer had his wheel chair taken away by the tax department for unpaid back taxes, but that chair was returned soon after due to an uproar by the cdn public. This explains why your poor horse loving lady taxpayer has not been evicted by the tax department.

This doesn't make sense, I don't think you have all the info. Yes, she can definitely lose her land due to non payment of taxes. After 2 years of non payment, the property is subject to tax sale by the municipality. This is part of the law, there is no provision for anyone, including the municipality itself, to alter the conditions, take partial payment, or anything else. The property is auctioned to the highest bidder.

So if that is the case, the bidder takes ownership one year after the sale date (during that year, the person gets their property back if they pay 100% of taxes due plus interest). When they take ownership, the new owner owns the property and yes, she becomes an illegal tenant, and can and should be legally removed.

I don't understand why Agriculture and Lands would have any involvement at all. so i suspect your information is wrong, and if they have ownership, it is for other reasons, perhaps loan default.

Her choice to keep pets is irrelevent to the issue.

Yes it happens all the time on Canada. Mostly for back property taxes. The houses are usually sold at public auction

Here in the United States yes. Happens all the time.