This posting applies to Rental Property owners that don’t have accountants to help with their taxes or their accountant hasn’t discussed with them the UHT.

Typically, the Underused Housing Tax (UHT) applies to non-resident, non-Canadian owners of vacant or seldom-used residential properties in Canada. It’s important to note that a substantial majority of Canadian residential property owners are classified as “excluded owners,” meaning they are not subjected to the liabilities and obligations outlined under the UHTA. However, there are many circumstances where some Canadian homeowners may be required to comply with the UHTA stipulations. The application must be filed before October 31, 2023 and taxes paid where applicable.

Commencing in the 2022 calendar year, and in each successive year, property owners in Canada must ascertain their specific responsibilities and liabilities under the UHTA. The stipulations dictate that certain “affected owners” are obligated to file an annual return and remit the underused housing tax. Conversely, there are affected owners who are required to submit an annual return but are exempt from the tax payment. It should be emphasized that excluded owners are neither required to file an annual return nor pay the underused housing tax. Further clarification can be found in the interactive page.

Please be advised that failure to comply with the annual return submission by the specified due date can result in substantial penalties. Individual affected owners face a minimum penalty of $5,000, while corporate entities are subject to a minimum fine of $10,000. Detailed information regarding penalties and compliance can be found in the Underused Housing Tax Notice UHTN3, titled “Filing a Return and Paying the Underused Housing Tax.”

You can also get more information at here.