Update regarding the Underused Housing Tax

As a follow up to the Notice to Licenced Insolvency Trustees (LIT) published by the Office of the Superintendent of Bankruptcy (OSB) on October 25, 2023, the Canada Revenue Agency (CRA) has further extended the period to file a return and pay the Underused Housing Tax (UHT) for the 2022 calendar year without penalties or interest to . As per CRA’s notice issued on October 31, a separate return will have to be filed by for each residential property owned on December 31 of the 2022 and 2023 calendar years to avoid penalties and interest.

The CRA provides general guidance on their website on the UHT, including an online self-assessment tool to help determine who must file a return and pay the UHT.

As previously reported, the OSB and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) have requested clarification from CRA on the application of the Underused Housing Tax Act and UHT requirements specifically for LITs. Again, the OSB will notify LITs as soon as clarification is received.

Questions may be directed to CRA by telephone at 1-800-959-5525 or by fax at 1-418-566-0319.