12/07/2023
(Proposed) Elimination of UHT Filing Requirements for Certain Owners, But Not for the 2022 Calendar Year.
As originally devised, exemptions from the Underused Housing Tax (UHT) could be claimed by specified Canadian corporations, partners of a specified Canadian partnership and trustees of a specified Canadian trust. However, to claim the exemption, these individuals or corporations must file a UHT return to avoid a penalty even though no tax is payable under an exemption. Changes to UHT compliance obligations have been proposed in the federal government’s 2023 Fall Economic Statement released on November 21, 2023. It is proposed that these individuals and corporations will be considered ‘excluded owners’ and will not have to file the UHT return for the 2023 and subsequent years.
However, please note that the proposed expansion of the definition of excluded owners does not currently apply to the 2022 calendar year. Affected owners must still file by April 30, 2024 for the 2022 calendar year.
As previously posted, please keep in mind that the Underused Housing Tax Return and Election Form is an altogether separate filing to the yearly Income Tax and Benefit Return.
Explanatory Notes to Legislative and Regulatory Proposals Relating to the Underused Housing Tax Act:
Department of Finance Canada - Draft legislation