Underused Housing Tax (Federal) and Vacant Unit Tax Declarations (City of Ottawa)

Underused Housing Tax (Federal) and Vacant Unit Tax Declarations (City of Ottawa)

If you own a residential property in Canada, you may be subject to one or both of two different taxes designed to encourage property owners to make better use of their homes. These are the Vacant Unit Tax, administered by the City of Ottawa, and the Underused Housing Tax, administered by the Canada Revenue Agency (CRA).

Vacant Unit Tax Ottawa

The Vacant Unit Tax applies specifically to residential properties located in Ottawa. The deadline to submit your declaration is March 16th, 2023. If you have not already done so, we encourage you to submit your declaration online as soon as possible. If a declaration is not submitted, the City of Ottawa will assume it is vacant and add the tax to your property tax bill. The tax is 1% of the assessed value of the property.

We cannot assist with filing the declaration with the City of Ottawa but wish to remind you of the upcoming deadline of March 16th, 2023.

Underused Housing Tax

The Underused Housing Tax is a federal tax that applies to residential properties owned in all of Canada and is designed to encourage property owners to make better use of their residential properties. All corporations, trusts, and partnerships that own residential property in Canada are required to file an Underused Housing Tax Return with the Canada Revenue Agency. For trusts and partnerships, the trustees or partners on legal title for the entity would have the filing requirement.

The tax for failing to file a return is a minimum of $5,000 for individuals and $10,000 for corporations. The Underused Housing Tax Return is due April 30th, 2023.

We have reached out to clients potentially affected by the Underused Housing Tax rules. If you are a member of a partnership, trustee of a trust, or a corporation and you have not been contacted by our office and think you may be affected by these rules please contact your service provider at our firm. We would be able to assist with the filing of the return with the CRA.

Testimonial from Rob Waterman - President at Waterman Sales Ltd.

We have been in Business since 1992 and had an accountant who was a family friend. When he retired, we needed to find a new accountant. Jacob at Hendry Warren was recommended to us through our Lawyer. We met with him and were impressed immediately; over the years we have gotten to know more of the staff and are equally impressed. They have done our company taxes, company valuations, share purchases, tax planning, covid relief, personal taxes, etc. All of which have gone very smoothly. Hendry Warren is aware of new legislation and has helped us grow as a company.

Rob Waterman (President at Waterman Sales Ltd.)
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Hendry Warren is a very professional organization who are very sensitive to client needs and timelines. Marie Fraser and all of the staff that I have met and worked with exhibit the same degree of courtesy and professionalism. It is always a pleasure working with them.

Lynn LaHam ( CPA, CGA, Crossroads Children’s Centre)
Testimonial from Chris Jerome, Treasurer - Habitat for Humanity – National Capital Region

Hendry Warren LLP has been easy to work with, dependable, personable and professional and are always available when we need them. The annual audit process is efficient and timely and their staff is always knowledgeable and well prepared.

Chris Jerome, Treasurer (Habitat for Humanity – National Capital Region)
Testimonial from Don Silverman - CFO Sciemetric

From the partners to the new graduates, the quality of service and advice were second to none…we rely heavily on the advice we are given from both an audit and tax perspective…I know that our firm can count on Hendry Warren LLP to be accurate, timely and professional at all times.

Don Silverman (CFO Sciemetric)
Testimonial from Gordon Miller - President, UNIGLOBE Premiere Travel

In every instance where advice or assistance has been needed it has been provided with clarity and timeliness. And with a very satisfactory outcome. Our accounting staff have always appreciated the efficiency of Hendry-Warren team assigned to our audits and review engagements. We appreciate that Hendry-Warren LLP is able to support our needs as a paperless group of companies.

Gordon Miller (President, UNIGLOBE Premiere Travel)
Testimonial from Les Bell, - CPA, CA, President, Lincoln Heights Ford Sales Ltd.

Ian Hendry is a truly responsive and responsible partner in our business and has been for over 20 years. I would (and have) recommend his services to everyone.

Les Bell, (CPA, CA, President, Lincoln Heights Ford Sales Ltd.)
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I have used Marie Fraser and her team at Hendry Warren for business, personal and special projects. Deep enough bench strength to cover anything, and small enough to pay attention.

Colin Goodfellow ()
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Jacob has been invaluable over the past 18 months in assisting with the incorporation and start-up of my new business venture. I trust Jacob's advice on complicated income tax and HST matters to allow me to focus on what is most important - my business!

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