Specific Legal Issues

April, 1 2023 Published by Toronto and Area Chapter

Federal Underused Housing Tax - Update

The Underused Housing Tax Act came into force with an effective date of January 1, 2022. Any person or entity that owns residential property in Canada and that does not fall into the definition of “excluded owners” are considered to be an ”affected owner”. Affected owners must file an annual UHT return with the CRA by April 30, 2023 (a previous newsflash showed this date as May 1).

Filing Deadline April 30, 2023

Waiver of penalties and Interest until November 1, 2023

The Underused Housing Tax Act came into force with an effective date of January 1, 2022. Any person or entity that owns residential property in Canada and that does not fall into the definition of “excluded owners” are considered to be an ”affected owner”. Affected owners must file an annual UHT return with the CRA by April 30, 2023 (a previous newsflash showed this date as May 1).

Waiver of penalties and interest: On March 27, 2023, the CRA announced that the Minister of National Revenue will be providing transitional relief to affected owners under the Underused Housing Tax Act so that no penalties or interest will be applied for UHT returns and payments that the CRA receives prior to November 1, 2023.

See our Legislative Newsflash of March 21, 2023 regarding the Underused Housing Tax.

For condominium corporations that own residential property (e.g., a superintendent’s suite), it is likely that they would be required to file the annual UHT return, but would be exempt from paying the UHT unless one or more of the directors is neither a Canadian citizen nor a permanent resident.  It should be noted that failing to file the annual return can carry a fine of up to $10,000.00 for corporations.  In all cases, condominium corporations should seek professional advice from their auditor or other qualified professional, and ensure that their UHT returns, if required, are attended to during this year’s tax season.
Learn More About Underused Housing Tax


The CCI Toronto Legislative Committee is committed to providing regular ongoing updates regarding all legislation concerning condominiums, in order to keep our members abreast of changes of which they need to be aware.

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