The Canada Revenue Agency (CRA) is giving affected homeowners a second extension to file an Underused Housing Tax return, making the announcement on the last day before the first extension was set to expire.<\/p>\n
On Tuesday, the CRA said it would waive the application of penalties and interest for any late-filed UHT returns and for late-paid UHT payable for the 2022 calendar year, provided the return is filed and the UHT paid by April 30, 2024.<\/p>\n
The CRA said the extension would allow more affected owners to meet their obligations.<\/p>\n
\u201cWe understand that many homeowners may not be aware that they are subject to this new law,” said National Revenue Minister Marie-Claude Bibeau in a release<\/span>. “This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations.\u201d<\/p>\n
In March, the CRA gave affected homeowners a six-month extension<\/a> beyond the official deadline of April 30 to file a UHT return and pay any UHT tax for the 2022 calendar year without incurring penalties and interest.<\/p>\n
The CRA is currently charging 9% interest<\/a> on overdue tax, but that rate will increase to 10%<\/a> in the first quarter of 2024.<\/p>\n
Tax practitioners have been sounding the alarm for months<\/a> that many Canadians may have a UHT filing requirement without knowing it.<\/p>\n
For example, if a child is put on title for a residential property by their parent who continues to live in the house as the beneficial owner, a bare trust arrangement is created<\/a>. Such transactions are often done for estate-planning purposes.<\/p>\n
The UHT return could also represent a filing nightmare.<\/p>\n