The Federal Government has finally jumped on the band wagon of requiring certain property owners to declare the use of their property. Some may be familiar with the Empty Homes Tax (city of Vancouver) or the Speculation Tax (province of BC). Now it’s the Federal Government’s turn to require annual property declarations. The target this time is underused property held by foreign owners. I am a Canadian so I am off the hook right? Not so fast!
The new legislation came in effect January 1, 2022 and while most Canadians won’t have to pay any tax there is an onerous filing requirement with stiff penalties for non compliance. So what doctors and dentists owning real estate need to be aware of:
- If you own a property individually yes you are off the hook, however, if you own a property inside a private corporation, in a partnership or via a trust (which includes bare trust ownership) then you are required to file a UHT-2900 tax return by April 30, 2023. The return can be found here:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/uht-2900.html
- A UHT-2900 Return is required for each property held
- It covers any property owned in Canada
- It is the title owner that files the return (i.e. if two entities are on title each must file)
- The deadline to file is April 30
- Penalties are $5,000 for late filing for individuals and $10,000 for corporations!
- For the complete details on the new tax including who will have to pay see the following:
https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html
If you would like our assistance in filing these elections please contact us as soon as possible.
