In response to questions put forward by OFA and others, the CRA recently issued additional guidance about which properties are exempt from the filing a UHT return.
There is a section of this guidance which is specific to agriculture and addresses under what scenarios housing for temporary foreign workers will require a UHT return to be filed. Most units designed specifically for housing temporary foreign workers such as bunkhouses, modular housing and mobile homes are not considered to be a residential property for the purpose of the UHT and therefore will not require a UHT return to be filed.
However, single-family homes that are used to house temporary foreign workers are considered a residential property and if that house is owned by a farm corporation or partnership then a UHT return must be filed and farmers can claim an exemption from the tax if they qualify.
We encourage farmers to read the new guidance here and consult with a tax professional about their specific situation. OFA will continue to lobby the government for a filing exemption for farm businesses in the 2024 tax year.