Government of Canada extends deadline for homeowners to file their Underused Housing Tax return
November 2, 2023
Not to worry!
After all the stress put on Canadian’s holding residential real estate, and the hefty penalties for not meeting the October 31 filing deadline, the Government of Canada has once again extended a deadline at the last moment, this time the day it was due! extends deadline for homeowners to file their Underused Housing Tax return.
Homeowners affected by the Underused Housing Tax (UHT) will now have until April 30, 2024, to file their returns for the 2022 calendar year without being charged penalties or interest.
Government’s Mandate: The Canadian government introduced the UHT to stimulate residential real estate development and address the housing crisis. The program is to allow for individuals and corporations to contribute to alleviating the housing shortage by promoting the efficient utilization of residential land.
Late Filing Penalties: Late filing or non-compliance with the UHT can result in substantial penalties, at least $5,000 for individuals, and $10,000 for corporations, for each residential property. The penalties are structured to ensure corporations adhere to the timeline and the guidelines set forth by the government. This could significantly impact the financial standing of the corporation.
Compliance Challenges: Adhering to the new tax requirements can be complex, particularly for corporations holding multiple undeveloped residential real estate properties. The challenges may include accurate documentation, timely filings, and understanding the intricacies of the UHT guidelines.
Kreston GTA: Your Compliance Partner: Engaging a CPA can significantly alleviate the compliance burden. With a complete understanding of the UHT, CPAs can guide corporations through the filing process, ensuring timely submissions and accurate compliance.
Please contact us if you are unsure of whether you need to report and file UHT. Assessing your position will be straightforward and keeping compliant will relieve the burden of unnecessary penalties.