Is Your Condominium Corporation Facing a $10,000 Penalty Under the Underused Housing Tax Act?

The article focuses on the impact of the Underused Housing Tax (UHT) Act on residential dwelling units owned by Condominium Corporations. The UHT rules were enacted on June 9, 2022, and apply to residential properties owned on December 31, 2022. Condominium Corporations that are not excluded owners must file a UHT return by April 30, 2023, to avoid a minimum penalty of $10,000. The article lists exemptions that may exempt Condominium Corporations from paying the 1% UHT on their residential dwelling units, such as the Specified Canadian Corporation exemption, Qualifying Occupancy Test, Newly Constructed Property/Under renovation exemption, Property not Suitable for year-round occupation, and Uninhabitable Condition exemption. Condominium Corporations are advised to gather information about their units and consult with their accountants to determine if they need to register and file a UHT return by the deadline. The article was distributed to relevant parties via email and social media.