Update: March 28, 2023
The broad scope of Canadian real estate owners (individuals and businesses) who are technically required to file UHT returns, even if there is no tax payable, has become more and more clear over the fall of 2022 and the spring of 2023. On March 27, 2023, the Canada Revenue Agency issued a statement providing transitional relief to give Canadians more time to assess their filing obligations and complete any required filings. While the due date technically remains Monday, May 1, 2023, CRA has announced that all penalty and interest charges will be waived provided the returns are filed (and any taxes paid) by October 31, 2023. Details here.
While this provides a welcome reprieve, it is still important to review any real estate for which you are a title holder (regardless of whether it is held for personal or income-generating use, and even if you are on title for property truly owned by a family member) to identify any required filings and ensure they are completed by the October 31, 2023 penalty relief deadline. The download document above provides further details.
Original Post: October 22, 2022
The federal government has legislated a new tax return and tax on underused housing in Canada. This tax return and tax will not impact individuals who are Canadian citizens for immigration purposes, but will impact any private corporation, partnership, trust or estate, as well as any non-resident foreigner who owns residential property in Canada.
Although most Canadian owners will not be required to pay this new tax, all private corporations, partnerships, trusts or estates, as well as non-residents, who own residential property will be required to file a separate return due April 30, 2023 for any residential property owned as of December 31, 2022.
The penalties for not filing this new separate tax return can be as high as $10,000.
If your corporation, partnership, trust or estate owns residential property, or you are a non-resident with Canadian real estate, please contact your team member at KRP to ensure that KRP has the most up to date information on any residential property.
To find out if you have a filing requirement, please click on the "Download" button at the top of this article.
Information provided is of a general nature and deals with time sensitive information that could change. Information may not apply to your particular facts and circumstances and should not be relied upon in lieu of seeking advice from your professional advisors. Neither KRP nor its partners, directors, contractors or employees will be liable for any actions taken from reliance on this information. Links to other websites or publications are provided for your convenience only and you may access them at your own risk. By supplying this information, KRP is not providing tax, accounting, legal, or professional service or advice.