As mentioned in a previous post, the Underused Housing Tax (UHT) took effect in Canada on January 1, 2022. It is an annual 1% tax on the value of vacant or underused real estate owned by non-resident non-Canadians. Although this tax typically applies to non-resident non-Canadian residential property owners, it may also apply to Canadian Private Corporations, Trustees of a Family or Bare Trust, and Partners of a Partnership in some situations.
As we near the April 30th Underused Housing Tax Return (UHTR) filing deadline, here are some important facts you should be aware of.
If the answer is YES to any of the above questions, you are required to file an Underused Housing Tax Return (UHTR).
The deadline to file a UHTR is April 30th, 2023. If a UHTR is not filed by April 30, significant penalties may apply – a minimum of $5,000 for individuals, and a minimum of $10,000 for other entities.
Although you need to file a UHTR under the UHT Act, you may not be liable to pay the UHT pursuant to a number of statutory exemptions. Read the full article here
If you would like our assistance in the preparation and submission of a UHTR, please contact us or the partner or accountant in charge of your engagement.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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