What is the Underused Hosing Tax (“UHT”)?

UHT is an annual federal 1% tax on the ownership of vacant or underused housing in Canada. While the government’s aim was to target non-Canadians, the filing requirements are broad and capture many Canadian persons, not just non-citizens and non-permanent residents. Many Canadian persons will be exempt from tax; however, you must file to claim the exemption, unless you are an excluded owner. There are significant implications for failure to file:

  • Minimum penalties of $5,000 for individuals and $10,000 for corporations. This penalty applies even if you do not have a tax owing.
  • No limitation periods for future CRA assessments.
  • CRA may deny section 116 certificate to a non-resident vendor.
Is the UHT filed with my annual filing obligations at year end?

UHT is not filed as part of your annual filing requirements, such as a personal, corporate, trust or partnership return, therefore your tax prepare or accountant will not automatically file the UHT return.

When is the UHT return due?

Form UHT-2900 must be filed with the Canada Revenue Agency by April 30th, if this falls on a weekend or public holiday that CRA recognizes, the return is due the next business day. For the 2022 taxation year, the CRA recognizes that there are challenges for affected owners in the first year of UHT administration, and has provided a filing extension and penalty and interest relief if the return and taxes are paid by October 31, 2023.

When is the UHT payment due?

Payment must be made to the Canada Revenue Agency by April 30th, if this falls on a weekend or public holiday that CRA recognizes, the payment is due the next business day. CRA’s payment options can be found here. For the 2022 taxation year, the CRA recognizes that there are challenges for affected owners in the first year of UHT administration, and has provided a filing extension and penalty and interest relief if the return and taxes are paid by October 31, 2023.

Who does not need to file a UHT return?

An owner of a residential property that is an excluded owner is not required to file a UHT return. An excluded owner includes (but is not limited to):

  • Canadian citizens and permanent residents, except where property is held by a Canadian individual as a trustee of a trust or a partner of a partnership
  • Publicly-traded Canadian corporations
  • Trustee of a mutual fund trust
  • Real estate investment trust or SIFT trust
  • Registered charities, universities, hospitals, and Indigenous governing bodies
An individual and their spouse jointly own a rental property and report the net rental income on their personal tax returns, are they required to file a UHT return?

Maybe, depending on how the arrangement is structured, co-ownerships, then they are likely exempt from the UHT filing requirements and tax. If the arrangement is structured as a partnership, then they likely fall under the UHT filing requirements, however, they may qualify from an exemption from the tax. Determination of the arrangement should be reviewed by:

  • Both the partner and spouse on title in the land registry system?
  • If only one individual is on title with the land registry system, is that individual holding interest on behalf of the spouse (i.e., trustee of the trust)?
  • How do your tax filings present your arrangement? (e.g., partnership box ticked on 776, structuring of assets reported on both the individual and partners return)
  • Is there a partnership agreement in place?
Can you represent me if I get audited by the CRA?

Yes, we can provide you all the necessary assistance in case of the CRA audit.

We encourage all our clients to participate in Audit Shield Fee Waiver Service which is insurance that covers all the professional fees incurred as a result of audit activity. Based on our experience so far, Audit Shield is a cost-effective protection and assistance against the costs that might occur should the CRA or other revenue authority conduct an audit, enquiry, investigation or review.

To learn more about the Audit Shield Fee Waiver Service and fees, please contact us.

What are the tax instalments and how do I pay those?

Installments are periodic income tax payments that you may have to pay on certain dates throughout the year rather than paying a lump sum on the filing date. The CRA may notify individuals or businesses as to what their installment obligations are for the upcoming fiscal year. Contact your practitioner if you have any questions about your installment payments.

How do I pay monies owed to the CRA?

CRA offers several options of making a payment. Please visit this website to determine which option is most suitable for you and find detailed payment instructions. We cannot process payments on behalf of the CRA.

How can I access my CRA tax information?

In order to view and manage your personal tax affairs online (such as tracking your refunds, viewing or changing your returns, checking your benefit payments or RRSP limit), you can directly access your CRA account.

Step-by-step instructions on how to register for CRA’s My Account can be found here and more information about My Account as well as list of services provided can be found here.

How do I pay my invoice?

We offer a variety of options for you to pay your bill:

    1. 1. Through our website, using a Credit Card:

      For your convenience, we have a Payment Portal on our website:

      It is a simple, secure, and trusted solution to process your payment. You will be asked to provide your 4-digit invoice number (located on the top right corner of your invoice).

      The amount owing will be filled up automatically, as per your invoice.

      Should you choose to proceed with your payment, you will be asked for your credit card number, expiry date and CVC number (Card Verification Code). Once you agree to the website’s terms and conditions, you will be able to finalize your payment.

      Printing the page, after completing payment, will serve as your payment receipt.

    1. 2. Through wire transfer or electronic funds transfer:

      Another way to pay your invoice is through a wire transfer. If you are planning to pay your invoice via bank wire, it is important to provide the appropriate information to your bank in order to avoid delays in the transmittal of funds. Please contact us to receive wire transfer instructions.
      Please be aware that there may be transfer fees required by your financial institution, in addition to the amounts owing.

      After you complete a wire transfer, you will receive a receipt from your financial institution. Please send a copy of this receipt by e-mail to us. If you are unable to send a receipt, please send an e- mail including your invoice number, date of the transfer and amount of the transfer.

      We accept payments in U.S. dollars.

    1. 3. Through Interac e-Transfer:

      Should you choose to pay your bill through Interac e-Transfer, please use our general e-mail inbox, and provide the invoice number as well as the password.

  1. 4. By cheque:

    You can pay your bill by mailing a cheque payable to “KPCPA” to our address:

    287 Macpherson Ave.
    Suite #202
    Toronto, ON
    M4V 1A4
What are your fees?

We pride ourselves on providing clients a value-for-fixed fee approach, rather than hourly billing. Thanks to that, you will know exactly how much you will be spending. We work with the latest software solutions which will allow you to benefit from best practices, saving time, and the best pricing.

Please feel free to contact us to discuss how we can assist you and your business in growing.

Are my documents safe?

Our Client Portal utilizes a top-notch security system and robust encryption algorithms. No third parties will be able to access your documents without your consent.

Can I DocuSign my documents via the portal?

Yes, you can DocuSign your documents using our portal as well as request signatures from others. According to the Personal Information Protection and Electronic Documents Act (PIPEDA), your e-signatures will enjoy the same legal status as wet-ink signatures on any document.

Please have a look at this video to see how you can add your digital signature in iFirm.

Electronic receipt via our client portal

We have a dedicated portal, which is a secure platform to share, store, exchange and sign documents online. This is our preferred method of receiving and sending sensitive documents. Clients are encouraged to reach out to us if they require access to a portal specific to their engagement.

Benefits of the portal include:

  • Share documents without worrying about the e-mail size limits and security.
  • Access and manage your documents at any time, stored in one, secure location.
  • DocuSign your documents, saving your most valuable resource – time.
  • Manage your budget by cutting courier fees as well as document management costs.
  • Reduce the paper costs and waste, by opting for the eco-friendly choice.

Please have a look at this video guide to CCH iFirm Portal.

You can also read detailed instructions on how to register for and access your Portal.

Means of communication

We are available by e-mail, phone, and fax during our business hours. If you leave a message, we will endeavor to respond to you at our earliest opportunity.

We can receive paper documents and electronic media at our office address, however, as a result of the COVID-19 pandemic, and in order to support physical distancing and prevent the spread of the virus, we have put emphasis on receiving data electronically.