Canadian homeowners affected by the Underused Housing Tax (UHT) will have until April 30, 2024 to file their returns for the 2022 calendar year without being charged penalties or interest.
Dubbed “transitional relief,” the last-minute extension will allow more time for those impacted to file their UHT returns without penalty, says Minister of National Revenue, Marie-Claude Bibeau. The original deadline for the 2022 tax year was October 31, 2023.
Just how many people and businesses this impacts is unclear at this time, as there is still quite a bit of confusion over who has to file a return. However, many farms and farm businesses will likely be exempt from paying the tax but still have to file the return, incurring significant costs to do so.
The UHT is an annual 1 per cent tax on the ownership of vacant or underused housing in Canada. It is a federal tax that is independent of other provincial and municipal taxes on vacant or underused housing in Canada.
Those who own residential property as a partner of a partnership (or as a trustee of a trust) and some Canadian corporations may also have to file a UHT return, even if they qualify for an exemption from paying the tax. What’s more, it’s up to individuals and corporations that own residences to determine if they need to file a return or not.
“We understand that many homeowners may not be aware that they are subject to this new law. This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations,” Bibeau says.
The Canada Revenue Agency has published an online self-assessment tool to help find information used determine if you need to file a return. Find that here.
If you’re an affected owner of residential property in Canada, you must file a separate UHT return by April 30, 2024, for each property you owned on December 31 of the 2022 and 2023 calendar years to avoid penalties and interest, the government says.
Related: UHT could cost farmers thousands