Generally, certain Canadian private companies and individuals, as well as non-resident, non-Canadian owners, will now have to file an annual return for specific types of residential property they own, and also determine whether they are liable for a 1% annual UHT on that property. To meet their new obligations for the 2022 calendar year, affected owners must file a separate UHT return and pay any related UHT by April 30, 2023 for each qualifying residential property they owned on December 31, 2022.

Some Canadian residential property owners, including nominee corporations, corporations wholly owned by Canadian citizens and subsidiaries of public corporations, may be surprised to find they have to meet these filing obligations, even if no tax is ultimately payable. With the filing deadline drawing near, these and other affected owners should act quickly to comply with these rules or else they may face significant penalties.

Note that affected property owners must meet this new federal tax obligation in addition to other vacant and unused home taxes recently introduced at the provincial and municipal levels.

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