OFA wrote the Honourable Chrystia Freeland (Deputy Prime Minister and Minister of Finance) regarding the proposed changes to the Underused Housing Tax (UHT) filing requirements outlined in the 2023 Fall Economic Statement. OFA fully supports the proposed changes. OFA is especially pleased to see the proposal to make “specified Canadian corporations”, partners of “specified Canadian partnerships” and trustees of “specified Canadian trusts”, “excluded owners.” OFA is also pleased to see a reduction in the non-filing fees from $5,000-$10,000 to $1,000-$2,000.
While these proposed changes would address Canadian farmers’ concerns moving forward, in the proposal it states that the proposed changes to filing requirements would be for the 2023 and subsequent calendar years. This means that farmers still need to face the compliance costs of filing a 2022 UHT return.
OFA urges the government to make all proposed changes apply in respect of 2022 and subsequent calendar years and pass legislation ratifying these changes without delay.