This month, our Partner and Co-Founder, Amanda Smyth contributed to the Toronto Law Journal, with the help of our summer law student Lily Meng, looking deeper into the Federal Underused Housing Tax Act and how it applies to Canadians.
"On June 9, 2022, the Underused Housing Tax Act (Canada) (the “UHTA”) received royal assent and was deemed to come into force on January 1, 2022, and applies to most Canadian residential real estate. The UHTA levies a 1% tax annually on the fair market or taxable value of properties that are categorized as underused or vacant homes. While many taxes applicable to real estate are levied in respect of the property by the municipal taxing authority, the structure of the UHTA levies the applicable tax on the owners, targeting primarily those persons who are not Canadian citizens or permanent residents. However, Canadian owners may also be subject to the tax in certain situations."
Read the full article here.
This update is not intended to provide legal advice, but to high-light matters of interest in this area of law. If you have questions or need assistance in navigating the UHTA in the acquisition of a property, please contact Amanda at amanda@ritchiesmyth.com.