Underused Housing Tax
The Canada Revenue Agency has introduced a Underused Housing Tax on ownership of vacant or underused housing in Canada that took effect on January 1, 2022. The tax usually applies to non-resident, non-Canadian owners. In some situations, however, it also applies to Canadian owners.
The details of the new Underused Housing Tax can be found in this link https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html
It is recommended to review the exemptions closely. It states that a property owner may be exempt if property is not suitable to be lived in year-round or seasonally inaccessible. It also indicates there is an exemption if you use it for 28 days in a calendar year as a vacation property, However, you still may need to submit paperwork to attest if you qualify for an exemption.
To ensure compliance with the new requirement you should contact the Canada Revenue Agency (CRA) directly to determine how this new legislation applies to your property/situation (contact information in link).
Update from CRA: To provide more time for affected owners to take necessary actions to comply, the Minister of National Revenue is providing transitional relief to affected owners. The application of penalties and interest under the UHTA for the 2022 calendar year will be waived for any late-filed underused housing tax (UHT) return and for any late-paid UHT payable, provided the return is filed or the UHT is paid by October 31, 2023.
Kelly Watkins, Dipl.M.A., M.M.
Township of North Frontenac
6648 Road 506, Plevna, ON, K0H 2M0
1-800-234-3953 or 613-479-2231 Ext. 223
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