Underused Housing Tax: Important Information for Non-Canadian Property Owners + April 30th Filing Deadline

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There is some new and important information about the “Underused Housing Tax” (UHT), as first reported in the Fall 2022 edition of the Temagami Times (see page 22). This tax applies only to non-Canadian property owners.

Non-Canadian property owners on Lake Temagami should be exempt from paying the UHT, as their cottage properties are either “not suitable to be lived in year-round” or “are seasonally inaccessible” (or both). The government website states that: “Even if your ownership of the property qualifies for an exemption, and you do not owe any tax, you still must file a tax return.” This form must be submitted annually to the Canada Revenue Agency by April 30th. There are significant financial penalties if you fail to file an “Underused Housing Tax” return when it is due.

Steps to Take:

  1. A detailed overview of the UHT can be found on the Canada Revenue Agency website at: www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html. Please read this before filing.
  2. If you don’t already have one, you must apply to the Canada Revenue Agency for an “Individual Tax Number”. A form can be found at: canada.ca/en/revenue-agency/services/forms-publications/forms/t1261.html.
  3. Once you have an “Individual Tax Number”, complete the “UHT Return and Election Form” at www.canada.ca/en/revenue-agency/services/forms-publications/forms/uht-2900.html, and submit this electronically or by standard mail. Lake Temagami property owners should fall under one (or both) exemptions described above – see item # 630 and # 635 on page 5 of the form. Please note that if you submit your return by mail, it should be sent to either the Winnipeg Tax Centre (US or UK residents) or the Sudbury Tax Centre (Germany and Australia residents).

If you have general inquiries about the UHT, please phone the Canada Revenue Agency, as follows:

  • If you are calling about a residential property that is owned by an individual and you are calling from:
    • within Canada or the United States, call 1‑800‑959‑8281
    • outside Canada and the United States, call 613‑940‑8495 (collect calls accepted)
  • if you are calling about a residential property that is owned by a corporation and you are calling from:
    • within Canada or the United States, call 1‑800‑959‑5525
    • outside Canada and the United States, call 613‑940‑8497 (collect calls accepted)