Underused Housing Tax (UHT) – Avoid the Significant Penalties

Awareness of the Underused Housing Tax (UHT) rules this upcoming tax season is low. Failure to comply has a minimum penalty of $5,000 for individuals and $10,000 for corporations. These are significant penalties.

The UHT is an annual 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022. The tax generally applies to non-resident, non-Canadian owners. Most Canadians won’t be impacted by this tax but because of the complex rules Canadian corporations and trusts may be surprised to find they have to meet the filing obligations by April 30th.  

Please contact your adviser to help you assess the effect of the UHT on your tax obligations.