What the CRA Said

Canada Revenue Agency Extends Deadline for Underused Housing Tax Returns

The Canada Revenue Agency (CRA) has announced a significant extension for homeowners to file their Underused Housing Tax (UHT) returns. In a recent news release dated October 31, 2023, the Minister of National Revenue, the Honourable Marie-Claude Bibeau, stated that affected owners now have until April 30, 2024, to file their returns for the 2022 calendar year without incurring penalties or interest.

This extension is a part of the Government of Canada’s effort to combat the housing shortage by implementing the UHT, a 1% annual tax on vacant or underused housing in Canada. It primarily targets foreign national owners of Canadian residential property, but also includes some Canadian individuals and corporations under specific conditions.

Most Canadian individuals owning residential property are not required to file a UHT return or pay the tax, being classified as ‘excluded owners’. However, ‘affected owners’, which include some Canadians and corporations, must determine their status and comply if necessary.

To assist homeowners, the CRA has launched an online self-assessment tool. This tool aids in determining whether an individual:

1. Needs to file a return and pay the tax;
2. Needs to file the return but is exempt from the tax;
3. Does not have to file a return or pay the tax.

For those required to file, the CRA emphasizes the convenience of using My Account and My Business Account online portals. Alternatively, returns can be filed electronically using a CRA tax identifier number and a digital access code, or by mail or fax.

This extension aims to ensure homeowners are well-informed and able to meet their obligations under this new law, reflecting the Government’s commitment to increasing available housing in Canada.

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Shajani CPA is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning services.