Deadline extended for filing of underused housing tax returns for 2022
The federal government levies a 1% underused housing tax (“UHT”) on some owners of vacant or underused residential properties in Canada. Generally, affected property owners are foreign nationals, or Canadian citizens or permanent residents who own residential property as a member of a partnership or as a trustee, or corporations which are incorporated outside of Canada.
Property owners who own an affected property at the end of the calendar year must file a return and pay any tax owing for each such property on or before the following April 30. The Canada Revenue Agency (“CRA”), however, recently announced that the deadline for filing such returns for the 2022 calendar year has been extended to April 30, 2024. Consequently, affected owners of residential property in Canada must file a separate UHT return by April 30, 2024, for each property owned on December 31 of the 2022 and 2023 calendar years, in order to avoid penalties and interest.
The news release announcing the extension can be found on the CRA website at Government of Canada extends deadline for homeowners to file their Underused Housing Tax return - Canada.ca, and detailed information on the tax itself is available on the same website at Who must file a return and pay the tax - Underused Housing Tax (UHT) - Canada.ca.
*The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.