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.

For additional information, please contact your KRP representative or contact us here.

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.

‍