The Underused Housing Tax (UHT) imposes a 1% annual tax on the value of residential real estate considered to be vacant or underused that is owned on December 31 of each year. While the government indicated that the tax would target property owned by non-Canadians, the scope of filing requirements extends to many Canadian corporations and individuals, including CCPCs, trustees of a trust and partners of a partnership.
- Filings and taxes are due by April 30 of the following year.
- For 2022 filings, CRA has provided transitional relief; they will waive any late-filing and late-payment penalties, provided that the return is filed or the UHT is paid by October 31, 2023.
- Penalties for failure to file the return (even where no tax is payable) start at $5,000 for individuals and $10,000 for corporations.
To assist you in navigating these new filing requirements and tax liabilities, Video Tax News has prepared a Quick Reference Chart incorporating legislation and CRA commentary as of August 28, 2023. The specific legislation, regulations and CRA administrative policy should be reviewed for a complete and detailed understanding.
Please note: This Quick Reference Chart is for accounting and financial professionals. Video Tax News does not provide consulting services. Please contact your accountant or other advisor for specific questions on the UHT legislation.
Due to the novel and evolving nature of this tax, minor changes might be made to the chart, as necessary, to adjust references, resources, or commentary.
We at AccoTax CPA Professional Corporation help our clients understand if UHT would be applicable to their situation. From bookkeeping to accounting and tax advisory and compliance services, we offer a comprehensive solution for your business and personal tax needs while you focus on growing your business. Contact us today to book an appointment and we’d be happy to help.
Resources:
https://www.videotax.com/web-tips-articles/underused-housing-tax-quick-reference-chart
https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html
