The Federal Government has extended the deadline for homeowners to file their Underused Housing Tax (UHT) return until April 30, 2024. This extended grace period will see the Canada Revenue Agency “waive the application of penalties and interest for any late-filed UHT returns and for any late-paid UHT payable for the 2022 calendar year, provided the return is filed and the UHT is paid by April 30, 2024.”
The deadline to submit an exemption filing for Canada’s federal vacancy tax—dubbed the Federal Underused Housing Tax (“UHT”)—is fast approaching. Required non-excluded owners must submit their Underused Housing and Tax Return Form—and accompanying payment, if applicable—by Tuesday, October 31, 2023. Failure to do so will result in a minimum fine of $5,000 for individuals and $10,000 for non-individuals.
In March, the CRA extended the inaugural deadline to October 31st from the original deadline of April 30th, 2023, effectively provided a grace period where late submissions would not be penalized, nor interest applied. Moving forward, non-excluded owners will need to submit this form annually—likely by April 30th—for as long as the policy is in effect.
Who needs to file?
The specifics around who needs to file a UHT form were covered in-depth in a previous article, but essentially the registered owner of a residential property as shown on a title search in the land registration system must submit a UHT form. This requirement is regardless of who—or what—holds the beneficial interest in the property.
Is anyone excluded?
Excluded owners have no UHT filing obligations. An owner is excluded from filing if on December 31st, they are:
Corporations and Trusts Beware
This policy may have significant impact on corporate owners of residential properties—or those who own via a trust. Since these corporate entities typically complete tax filing in line with their fiscal year-end—not calendar year—they risk missing the October 31st deadline simply because they didn’t know a separate filing was required. It’s therefore important to speak with your accounting or legal partners to ensure you’re submitting on time and avoid a fine.