Important Tax Filing Information for 2022 and Beyond

Bare Trust Update

Great news for bare Trusts! The Canada Revenue Agency (CRA) has recently announced that they are exempt from trust reporting requirements for the 2023 tax year.

Underused Housing Tax (UHT) Returns for 2022

UHT is still required for the 2022 tax year, even for bare trusts holding residential properties, which are properties that have residential units built on them.

Don’t Be Penalized!

Many Canadians are unaware they may be considered “affected owners” and need to file a UHT return for the 2022 tax year. Failing to file the UHT can result in a minimum penalty of $1,000 for individuals or $2,000 for non-individuals.

Even if you don’t owe any tax, filing is crucial to claim an exemption.

While proposed legislation aims to remove this filing requirement for certain entities in the future, it doesn’t apply to the 2022 tax year.

Penalty Relief

Penalties for late filing and non-payment of the UHT for the 2022 calendar year are now waived if you file your return and pay any tax owing by April 30, 2024.

Who Needs to File?

Find out who needs to file UHT

This tax applies to more than just non-residents. Canadian individuals, private corporations, partnerships, and even some bare trusts may be considered “affected owners” and must file a UHT return.

Who Might Be an Affected Owner?

  • Bare Trustees

Added to a property title for financing or estate planning purposes, but not a beneficial owner? You’re likely a bare trustee and need to file.

  • Joint Property Owners

Sharing a rental property with reported income jointly? You might need to file.

  • Home Business Owners

Operating a business from your jointly-owned home? This could make you an affected owner.

  • Farmers

Most Canadian farmers likely need to file due to housing units on their farms.

  • Private Corporation Shareholders

Owning shares in a corporation with a “housing unit” (not necessarily zoned residential) can trigger the UHT filing requirement.

Canadians Take Note!

While this tax was initially aimed at non-residents, many Canadians are affected owners and need to file to claim their exemption.

Need More Information?

Tax Tips

  • Unsure about filing? Get professional advice or file anyway to avoid penalties.
  • If your advisor advises against filing, ensure they’ll cover any resulting penalties.
By |2024-05-24T14:29:33+00:00May 23rd, 2024|Uncategorized|0 Comments