In Fall 2022, the federal government passed legislation relating to the “Underused Housing Tax,” designed to tax foreign ownership of vacant housing and
these rules are now in effect. As a consequence of the new rules, most Canadian private corporations, partnerships and trusts – including those with no foreign ownership or foreign beneficiaries – that owned residential property on December 31st, 2022, are required to file an annual return for each property even where no tax is payable. A filing is required to indicate eligibility for an exemption to the tax.  

The returns for 2022 are due to be filed by May 1st, 2023 and a failure to do so could result in a late filing penalty of $10,000 for a corporation. 

If you have not already been contacted by our office, please reach out if you feel that this filing may apply to your situation.