24 Oct UHT Final Reminder
We would like to remind our clients about the deadline for filing Underused Housing Tax (UHT) returns for the 2022 year is October 31, 2023. Clearline CPA is here to support you in ensuring compliance with the UHT regulations and avoiding unnecessary penalties and interest.
Corporate Owners of Residential Real Estate
While the obligation for the tax is designed to focus on individuals who are not Canadian citizens or permanent residents, the filing requirements are not so focused. Our biggest concern is that there is a catch for anyone holding residential real estate via a corporation, partnership or trust. Any Canadian corporation, partnership or trust holding residential real estate in Canada that may not be subject to the tax still MUST file a return or be subject to the penalties for not filing. This is where we believe most of our clients are at risk of being penalized and why we want to ensure that this does not occur.
Late Filing Penalties
The penalty for failing to file a declaration is the greater of $5,000 for individuals and $10,000 for corporations, partnerships and trusts, and the total of 5% of the UHT, plus 3% of the UHT for each calendar month the declaration is past due. Due to the significance of the penalty, you may want to err on the side of filing where there is uncertainty on the filing obligation.
To avoid penalties and interest, it is crucial to file your UHT returns before November 1, 2023. Failing to meet this deadline may result in serious financial consequences as noted above. However, Clearline CPA is here to help you navigate the complexities of UHT regulations and ensure a seamless filing process.
Here’s How We Can Support You:
- Expert guidance: Our knowledgeable team is well-versed in UHT regulations. We stay updated on the latest developments and can provide you with accurate information and guidance to ensure compliance.
- Filing assistance: Clearline CPA is equipped to handle all aspects of UHT filing on your behalf. Our team will gather the necessary information, prepare your UHT returns accurately, and submit them before the November 1, 2023 grace period ends.
- Property assessment: Determining whether your property is underused according to UHT criteria can be complex. Our tax professionals can help you assess your property’s utilization and provide insights on how to optimize its usage to comply with UHT regulations.
- Tailored solutions: Every client’s situation is unique. Clearline CPA offers personalized solutions tailored to your specific circumstances.
2023 Year Filings
We are already starting to look ahead for the UHT filing for the 2023 year. For residential property owned on December 31, 2023, the UHT filings will be due on April 30, 2024. As the spring is a busy time for other tax filings, we will be reaching out to our clients in early 2024 to get started on these 2023 UHT returns.
If you want to avoid a UHT filing, there may be the ability to change the ownership of the real estate prior to December 31st. We encourage to reach out to your Clearline representative(s) to determine whether any changes can be made.