With less than 5 weeks until the first UHT deadline, we wanted to give you an update on some recent developments.
The CRA announced on March 27th that the penalties and interest under the Underused Housing Tax Act would be waived for late-filed UHT return that are filed by October 31, 2023. Though the deadline is technically still April 30th, this is significant relief.
The election for non-residents to select a single property eligible for certain exemptions is due April 30th or such a later date as the Minister allows. It is not clear whether this can be late filed with the above.
The election to use the fair value to calculate the UHT instead of the greater of the assessed value or the most recent sale price is due April 30th. It does not appear that this election allows for an extension and therefore we understand that this is still due by April 30th.
See here for a link to the CRA notice.
Question and Answers
The CRA has also prepared a Q&A document which answers a few common questions. Unfortunately, CRA’s answers do not clearly respond to the questions regarding co-ownerships versus partnerships but add some insight. A review of the facts in each circumstance is important.
See here for a link to the CRA’s Questions and Answers.
As you continue to work through those common situations reach out to Shane Schepens directly for consultation or other support services.
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