Finance and Accounting Blogs
Accounting and tax planning may seem difficult but with the help of our blogs, you will feel well-equipped to take care of this daunting task. These well-written blogs by finance experts will allow you to educate yourself. You will also get to know if you need the help of an expert or not. Peter W Ng Professional Corporation is always there to help you through any tricky financial situation.
All About the Underused Housing Tax (UHT)
The newly introduced Underused Housing Tax (UHT) imposes a 1.00% annual tax on the value of residential real estate considered to be vacant or underused that is owned on December 31 of each year. While the government indicated that the tax would target property owned by non-Canadians (eg, non Canadian citizens or non permanent residents for immigration purposes), the scope of filing requirements extends to many Canadian corporations and individuals, including CCPCs, trustees of a trust and partners of a partnership. The first filings and taxes are due by April 30, 2023. Penalties for failure to file the return (even where no tax is payable) starts at $5,000 for individuals and $10,000 for corporations (meaning if you are not liable for UHT tax but you still have to file the UHT return to avoid failure to file penalty).
To assist you in navigating these new filing requirements and tax liabilities, we have prepared a Quick Reference Chart incorporating legislation and CRA commentary as of January 17, 2023. The specific legislation, regulations and CRA administrative policy should be reviewed for a complete and detailed understanding.
Please do not wait. Reach out today to discuss your specific circumstances and these new filing requirements and tax liabilities.