Are you a Canadian non-resident individual, a Canadian private corporation, a partnership, a non-profit organization or a trustee of a trust; and own one or more residential properties? You must file a return and may be required to pay the new tax on underutilized dwellings (TLSU).
Many people think they don’t have to file a tax return because they don’t have to pay any tax. However, failure to file the declaration makes them liable to a fine of $5,000 as an individual, or $10,000 for any other person.
Grace period ends October 31, 2023
The declaration, and payment of the tax where applicable, was due by April 30, 2023, for residential properties owned as at December 31, 2022. However, given the complexity of applying the rules, the federal government has offered a grace period of October 31, 2023, to allow affected owners to comply. So don’t delay!
Note that we can analyze your situation, and then help you file any required returns.
A reminder about the Tax on Underutilized Dwellings
As of January1, 2022, a new law has been introduced by the federal government for all residential property owners in Canada. The Underutilized Dwelling Tax Act (“Act”) is designed to slow the escalation of the real estate market in certain regions of Canada. See our previous article for more details >>>
Our colleagues Sylvie Therrien, Attila Demeter and Jerry Médénou are available to help you meet your obligations under the new TLSU.
An article from the tax department
