The Canada Revenue Agency has waived nearly $2.5-billion in interest and penalties related to Ottawa’s tax on vacant and underused homes held by foreign owners, a figure that dwarfs the projected annual revenue of the new levy.
The underused housing tax (UHT), which took effect in 2022, imposes an annual tax of 1 per cent per year on residential properties owned by foreign nationals that are left underused or vacant, with the aim of boosting housing availability. But the levy’s complex reporting requirements initially also embroiled many Canadians, leading the CRA to repeatedly provide relief for late filers. The government eventually largely scrapped filing obligations for Canadian homeowners and corporations starting with the 2023 tax year.
h/t Mauser
