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An overview by Borden Ladner Gervais LLP
Scott Gorski, Senior Associate at our Canadian firm, Borden Ladner Gervais, analyses a new annual underused housing tax implemented by the Canadian government. The tax targets owners of residential property throughout Canada, including non-Canadian citizens or permanent residents.
All “owners” of “residential property” throughout Canada on December 31 of a given calendar year must file a underused housing tax return unless they qualify as an “excluded owner”. The failure to file an underused housing tax return can result in significant penalties.
The deadline to file is April 30 of the following calendar year and each owner on title (other than an excluded owner) is required to file a return. For the 2022 calendar year, affected owners must file by May 1, 2023.
The underused housing tax imposes a tax at a rate of one per cent of the greater of: (a) the assessed value of the property; and (b) the latest sale price. There are also a number of exemptions available in the underused housing tax for various circumstances, with exemptions available for various circumstances.
Read the full article here.
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