If you owned some types of residential property in Canada on December 31, 2022 and are neither a Canadian citizen nor a permanent resident: “even if your ownership of the property qualifies for an exemption and you do not owe any tax, you still must file a return” according to the Canadian Revenue Association (CRA). Additionally, Canadian partnerships and corporations that are title-holders of residential property may need to file as well.
 
Affected property owners should consult the CRA information about their specific situation, but generally:
    •    This week, FOCA learned that penalties for late filing and interest will be waived in this transitional year, provided the return is filed and any UHT is paid by October 31, 2023.
    •    Non-Canadians who need to file the UHT form should apply to CRA for an Individual Tax Number (ITN) as soon as possible. These requests can take up to eight weeks to process, so the sooner you can start that process the better. This number will be needed for any future dealings with the CRA, such as UHT filings, so please remember to store your ITN safely.
    •    To get an ITN you need to complete the application form and mail it along with the applicable government ID (certified or notarized copies).
    •    Complete form T1261 for the Underused Housing Tax.
    •    Should you object to any late filing or other penalty levied, you can file an objection through taxpayer relief provisions available.
 
Consult this government UHT webpage outlining who is “excluded” and who is “affected” by this tax, which is assessed annually as 1% of the property value. Note: you won’t be able to use the CRA’s UHT Designation Tool if you are water-access only or your property does not otherwise have a postal code. Below are 2 additional links provided by the Office of the Minister of National Revenue:
    •    Questions and Answers on the Underused Housing Tax – Canada.ca
    •    Underused Housing Tax penalties and interest waived – Canada.ca
 
FOCA will continue to post news about the UHT on our webpage: https://foca.on.ca/property-taxation-assessment/. LMAA members can sign up for the free FOCA Elert (monthly e-news) for updates on this and other cottage country topics.
 
Sincerely,
 
Michelle Lewin
Manager of Communications & Development
communications@foca.on.ca   705-749-3622 
Federation of Ontario Cottagers’ Associations
#201 – 159 King Street, Peterborough ON K9J 2R8  foca.on.ca