{"id":4602,"date":"2023-11-26T13:52:19","date_gmt":"2023-11-26T18:52:19","guid":{"rendered":"https:\/\/amyotgelinas.com\/important-news-tax-on-underutilized-dwellings\/"},"modified":"2023-11-26T13:52:19","modified_gmt":"2023-11-26T18:52:19","slug":"important-news-tax-on-underutilized-dwellings","status":"publish","type":"post","link":"https:\/\/amyotgelinas.com\/en\/important-news-tax-on-underutilized-dwellings\/","title":{"rendered":"Important news &#8211; Tax on underutilized dwellings"},"content":{"rendered":"<p>As of January<sup>1,<\/sup> 2022, the federal government has introduced legislation covering all owners of residential property in Canada. <a href=\"https:\/\/laws-lois.justice.gc.ca\/fra\/lois\/U-0.5\/index.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>The Underutilized Dwelling Tax Act<\/em><\/a> (&#8220;Act&#8221;) is designed to slow the escalation of the real estate market in certain regions of Canada. We also invite you to consult the initial terms and obligations in our article: <a href=\"https:\/\/amyotgelinas.com\/taxe-logements-sous-utilises\/\">You could be affected by the new Underutilized Dwelling Tax!<\/a> <\/p>\n<h3>Proposed changes to the Underutilized Dwelling Tax<\/h3>\n<p>Canada&#8217;s Finance Minister Chrystia Freeland&#8217;s Fall Economic Statement for 2023 made significant proposals for changes to the Underutilized Dwelling Tax (&#8220;UDT&#8221;), and announced related legislative and regulatory proposals.<\/p>\n<p>The most significant changes, if adopted, should be very welcome by many Canadian individuals and entities who had little understanding of the need to file a return simply because they owned one or more residential properties, even if they ultimately had no tax to pay.<\/p>\n<h3>In particular, from calendar year 2023 onwards<\/h3>\n<p>The federal government is proposing to make &#8220;specified Canadian corporations&#8221;, partners of &#8220;specified Canadian partnerships&#8221; and trustees of &#8220;specified Canadian trusts&#8221; &#8220;excluded owners&#8221; for the purposes of the TLSU, so that these &#8220;persons&#8221; will no longer be required to file TLSU returns;<\/p>\n<p>Incidentally, broaden the definitions for these categories of persons to offer relief to a wider range of Canadian ownership structures.<\/p>\n<p>In addition, the government is proposing to modify retroactively (i.e. from calendar year 2022) the amounts of penalties for failure to file a return:<\/p>\n<ul>\n<li>From $5,000 to $1,000 for an individual;<\/li>\n<li>From $10,000 to $2,000 for a corporation.<\/li>\n<\/ul>\n<p>On another note, the government is proposing to introduce, starting in calendar 2023, a new exemption from the TLSU for residential buildings held as a place of residence or lodging for employees. However, the exemption would not apply to buildings located in a population center in a census metropolitan area or census agglomeration with 30,000 or more residents. <\/p>\n<p>The federal publication also includes the following proposed technical changes:<\/p>\n<ul>\n<li>As of calendar year 2022, unitized apartment buildings (&#8220;condominiums&#8221;) would no longer be &#8220;residential buildings&#8221; for TLSU purposes;<\/li>\n<li>Starting in calendar year 2024, an individual or spouse could only claim the TLSU exemption on &#8220;vacation properties&#8221; for a single residential building in a given calendar year.<\/li>\n<\/ul>\n<h3>Declaration filing deadline<\/h3>\n<p>As a reminder, for both calendar years 2022 and 2023, the deadline for filing a TLSU return, and for making the related payment, remains <strong>April 30, 2024<\/strong>, as announced by the federal government on October 31.<\/p>\n<p>Our colleagues <a href=\"https:\/\/amyotgelinas.com\/membres_equipe\/sylvie-therrien\/\">Sylvie Therrien<\/a> and <a href=\"https:\/\/amyotgelinas.com\/membres_equipe\/jerry-medenou\/\">Jerry M\u00e9d\u00e9nou<\/a> are available to help you comply with your TLSU obligations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As of January1, 2022, the federal government has introduced legislation covering all owners of residential property in Canada. The Underutilized Dwelling Tax Act (&#8220;Act&#8221;) is designed to slow the escalation of the real estate market in certain regions of Canada. We also invite you to consult the initial terms and obligations in our article: You [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132,137,136,131],"tags":[],"class_list":["post-4602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-management","category-consumption-taxes","category-personal-finances","category-taxation"],"acf":[],"_links":{"self":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/posts\/4602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/comments?post=4602"}],"version-history":[{"count":0,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/posts\/4602\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/media\/4603"}],"wp:attachment":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/media?parent=4602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/categories?post=4602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/tags?post=4602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}