November 22, 2023 Category News, Uncategorised
| The Canada Revenue Agency has extended the effective deadline again for filing and payment for the 2022 Underused Housing Tax (“UHT”) returns until April 30, 2024. Penalties and interest will be waived as long as the return is filed and payment is made before May 1, 2024. This coincides with the deadline for the 2023 UHT return. About the Underused Housing Tax In 2022, the Government of Canada introduced the UHT to deter foreign ownership of Canadian residential property and improve housing affordability. The UHT is an annual 1% tax calculated on the assessed value of the subject property payable by certain affected owners. While the primary targets of the UHT are non-Canadians, the obligation to file a UHT return applies to many Canadian residential property owners. Generally, the registered owner of a property must file a return for each property they owned on December 31, 2022 and another return for each property they owned on December 31, 2023. The main exception to this is any owner who is a Canadian citizen or permanent resident who is not holding the property as trustee of a trust (including a bare trust) or as a partner in a (business) partnership. These people are “excluded” owners, and are therefore excluded from the filing requirement. There are several important exemptions from the payment of the tax, but each requires filing a return. Most taxpayers who are required to file will be exempt from the tax. |