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Real Estate
Underused Housing Tax
The Canadian government has implemented its own vacancy tax at the federal-level called the Underused Housing Tax (“UHT”), which is effective as of 2022.
If you own property in Canada, you are required to make the UHT declaration unless you are specifically exempted. Many Canadian citizens and permanent residents that own property in their own personal names, will be exempted from having to make this UHT declaration.
However, Canadian citizens or permanent residents who hold title of property as a trustee, such as a bare trust or nominee, are not specifically exempted and are likely required to make the UHT declaration.
Failure to file can lead to significant penalties, starting at $5,000 for an individual and $10,000 for a corporation.
The first declarations will be made this year, 2023.
Bell Alliance does not assist with filing these declarations, so please contact your accountant prior to April 2023 to see whether you are exempted from this UHT declaration requirement and if not, to make the UHT declaration to the Canadian government.
Further information: https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html