The Canadian government has proposed significant changes to the Underused Housing Tax Act (UHTA), which will likely exempt you from having a filing requirement, but the amendments have not passed into law yet.
The UHT filing deadline is April 30 and it is fast approaching. We are presenting 3 options for you to select from:
- Let Us Handle It
Opt for peace of mind by having our team file the UHT return on your behalf. We’ll ensure compliance and timely submission. - File Independently
If you prefer to handle the UHT return yourself, make sure to meet the deadline. Remember that accurate reporting is crucial to avoid penalties. - Don’t File
You can choose not to file by the April 30 deadline, but be aware of the consequences. If the amendments are not passed, you may still have a UHT filing obligation. The penalty for failing to file on time is currently $5,000 for individual owners and $10,000 for non-individual owners.
Submission Deadline
To proceed with your preferred option, please inform us by March 31, 2024. We’re here to assist you in navigating these changes effectively.
Understand the Proposed Amendments to Canada’s Underused Housing Tax
The Canadian government has proposed significant amendments to the Underused Housing Tax Act (UHTA) aimed at making compliance easier and ensuring the tax’s intended application. Here are the key takeaways from the proposed changes:
- Revised Exclusion Criteria
The definition of ‘excluded owner’ is set to expand, potentially exempting more individuals and entities from the UHT. This includes certain trusts, partnerships, and corporations that meet specific conditions. - Implications for Owners
The amendments clarify the obligations of various owners, distinguishing between ‘excluded’ and ‘affected’ owners. Affected owners, including foreign nationals and certain corporations, must file an annual UHT return. - Penalty Adjustments
Proposed changes include reduced penalty amounts for failing to file the UHT return on time, with retroactive effect from the inception of the UHTA. - Vacation Property Exemption
There are new conditions for the exemption applicable to vacation properties, which could influence penalty calculations for late filings.
