Underused Housing Tax

Do you have housing that is superfluous to your needs and aren’t sure if it qualifies to have the UHT filed? If so, it is important to read the following:

If you have not spoken to me about it, and if you have not engaged me to talk with you about it, then I am not preparing it for you. CPA recently sent out the following in part:

The Underused House Tax (UHT) Act received Royal Assent in June of 2022, and is retroactive to January 1, 2022.

The UHT assesses a 1% annual tax on the value of vacant and underused residential properties owned, either directly or indirectly, by foreign, non-resident owners. The value is based on the greater of the Current Value Assessment (CVA) and the most recent purchase price.

Residential properties that meet certain exemptions will not be subject to the 1% tax; however, all owners of residential properties, other than excluded owners, must file an annual declaration for each residential property owned in the calendar year by April 30 of the following Calendar year.

On March 27, 2023, the CRA announced that there will be no penalties or interest assessed for the 2022 UHT returns as long as they are filed and the applicable tax is paid by October 31, 2023. The transitional relief did not change the filing due date, but will waive penalties and interest if returns and payments are received by October 31, 2023.

The UHT is not an income tax and is outside the purview of my normal engagement. If you have a filing obligation, and there is no way for me to know that without direct verbal communication asking specific questions, then I have referrals for you. Please call me (or email and we can set up a time to talk) and I can point you in the direction to get it done professionally.

For more information, see CRA at https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html