As of January1, 2022, a new law has been introduced by the federal government for all owners of residential property in Canada. The Underutilized Dwelling Tax Act (“Act”) is designed to slow the escalation of the real estate market in certain regions of Canada.
Canadian private corporations, most trusts, partnerships and non-profit organizations are not excluded owners under the Act, and are generally required to file an annual return by April 30 of the following calendar year. We invite you to consult the terms and obligations in our article: You could be affected by the new Tax on Underutilized Dwellings!
Canada Revenue Agency offers additional lead time
Faced with the challenges of the first year of application of the Act, and in order to give affected homeowners more time to take the necessary steps to comply, the Minister of National Revenue is offering them transitional relief. This transitional relief means that while the deadline for filing Underutilized Dwelling Unit Tax (UDUH) returns and remitting UDUH payable is still April 30, 2023, no penalty or interest will be applied to UDUH returns and payments received by the Agency before November 1, 2023, that is, no later than October 31, 2023.
Our colleagues Sylvie Therrien and Jerry Médénou are available to help you meet your obligations under the new TLSU.
