New Trust Reporting Menu
We want to bring to your attention changes that may affect you in the coming tax season and throughout 2024:
- Reporting by Trusts
- Underused Housing Tax – YOU ARE HERE
- Toronto Vacant Housing Tax
- Sales of residential Real Estate
- Canada Pension Plan
- Home Office Expenses
- Prescribed Interest Rates
- Tax-Free Savings Account Contribution Limits
- Changes to Ontario Business Registry
- Not-for-Profit and Charitable Organizations
Underused Housing Tax
The issues related to the new Trust reporting requirements were also relevant in determining whether a Underused Housing Tax (UHT) return had to be filed by residential property owners for qualifying residential property owned on December 31, 2022.
The 2022 UHT return was to have been filed by April 30, 2023, but the deadline was extended to October 31, 2023. On the afternoon of October 31, 2023, the deadline was further extended to April 30, 2024.
If you have not filed a 2022 UHT return, which applies to many of the trust arrangements described above, please let us know so the return can be filed by the new deadline.
The Federal government realized that the UHT requirements, which were designed to identify and tax foreign owners of Canadian residential property, was unduly affecting many taxpayers and announced that “specified Canadian corporations”, partners of “specified Canadian partnerships” and trustees of “specified Canadian trusts” will not have a reporting obligation for 2023 and subsequent calendar years.
The CRA also reduced the non-compliance penalties to $1,000 for individuals (from $5,000) and to $2,000 for corporations (from $10,000) for 2022 and subsequent years.