July 13, 2022
Canada's new Underused Housing Tax Act receives Royal Assent
Bill C-8, Economic and Fiscal Update Implementation Act, 2021, received Royal Assent on June 9. Bill C-8 implements certain measures announced in the federal economic and fiscal update tabled on December 14, 2021, as well as Canada's new Underused Housing Tax (UHT). The new tax, which will be administered by the Minister of National Revenue, is modeled to some extent on the speculation and vacancy tax imposed by the province of British Columbia for 2018 and later calendar years. It should be noted that while the UHT Act is now in force, some details of the tax remain to be fleshed out by regulation, such as prescribed properties to be included or excluded from the tax and certain prescribed persons to be treated as owners for purposes of the rules.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert