On October 31, 2023, the Government of Canada announced that it will waive penalties and interest for any late-filed 2022 Underused Housing Tax ("UHT") returns and late paid UHT until April 30, 2024. The Canada Revenue Agency ("CRA") had previously announced that penalties and interest relating to the UHT would be waived until October 31, 20231, so this most recent announcement provides affected owners once again with an additional 6 months to determine their obligations under the Underused Housing Tax Act ("UHTA").
The Government of Canada said in their news release that the relief from interest and penalties will allow more affected owners to meet their obligations under the UHTA. The Honourable Marie-Claude Bibeau, Minister of National Revenue, said "We understand that many homeowners may not be aware that they are subject to this new law. This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations."2
Owners of residential property in Canada should verify whether they have filing and payment obligations under the UHTA. Affected owners may have filing obligations even if they do not need to pay the tax. For a more detailed explanation of the UHTA, see our previous blog posts here and here.
Affected owners will now need to file the 2022 and 2023 returns both by April 30, 2024. CRA has not yet announced any relief for returns and tax owing for the 2023 calendar year.
Footnotes
1. From initial filing and payment deadline scheduled on April 30, 2023.
2. Government of Canada, Government of Canada extends deadline for homeowners to file their Underused Housing Tax return;https://www.canada.ca/en/revenue-agency/news/2023/10/underused-housing-tax-transitional-relief-period-extended-until-april-30-2024.html?utm_source=mediaroom&utm_medium=eml
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