Does the New tax Filing Requirement Affect You?


On December 31, 2022, was your name or your company’s name on title of any residential properties with Land Titles Registry, other than your primary place of residence?

 

Have you guaranteed or co-signed any residential mortgages?

 

Was your name on title of your parents’ home?

 

If you answered yes to any of the above questions, you may have a new filing requirement for 2022. Penalties for late or missed filings are substantial.


The Government of Canada has implemented a new underused housing tax (UHT) targeted towards non-Canadian residents who owned residential property in Canada on December 31, 2022.  In some cases, Canadian residents may have a filing obligation, even in instances where they are exempt from the tax.  

Does This Affect You?


Affected owners are required to file a form UHT-2900 on an annual basis or face a penalty of $5,000 or $10,000 for each residential property. 

 

Specific instances where a Canadian owner is required to file Form UHT-2900:


  • Co-signors on mortgages
  • Individuals or corporations listed on the land title for any reason other than as a personal representative of a deceased individual
  • Individuals or corporations that own a residential property as a trustee of a trust
  • Corporations whose shares are not listed on a Canadian stock exchange that own residential properties
  • Individuals who own a residential property as a partner of a partnership – note that even if a partnership agreement does not exist, in certain cases, residential rental properties may be designated as partnerships
  • Any residential property owner that is not considered to be an excluded owner


Please refer to this link for definitions of affected and excluded owners, as well as more information on the Underused Housing Tax Underused Housing Tax - Canada.ca

 

To view the Underused Housing Tax Act https://laws-lois.justice.gc.ca/eng/acts/U-0.5/


The deadline to file Form UHT-2900 and pay the applicable tax is April 30, 2023, however the CRA has indicated that the penalty will be waived in 2023 if the form is filed by October 31, 2023.


If you are unsure if your ownership of a residential property may require you to file form UHT-2900, please contact our office.

The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.

No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents.

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