Poll Results: It’s Time for the UHT to Go!

It’s official:  pros have weighed in on this important tax trend in 2024: “The government’s Underused Housing Tax consultations ended January 3. Should the UHT stay or should it go?” The comments shed light on the consensus – it’s time for it to go, according to the tax and financial professionals who participated in our January poll.

Here’s what you said:

“The UHT is a poorly designed bureaucratic boondoggle which achieves nothing of its intended purpose, adds complexity to taxpayers filing requirements and its impacts are not well understood by the government group tasked with implementation and enforcement.”  -Terry H

“Unless changed to target only non-Canadian owners, it should go. Originally, it was supposed to keep prices lower and increase available housing units to Canadians by discouraging foreign buyers/investors from buying up homes and driving up prices to where Canadians couldn’t afford to buy a house to live in. So far any price drops are due to the economy and Canadians are being hit by the tax.” - Martin

“CRA project regarding UHT is un-necessary cost to government spending It should go as it cost extra to taxpayer to prepare this returns” - Natividad Waldman

“It should go.  Tax non-resident homeowners and non-Canadians a much higher tax.  Be even better if only Canadians could buy property in Canada.” - Pat Morton

“Any tax has undesirable consequences in one way or another.  It’s the lazy minded way of trying to solve a problem with the appearance of action.” - JAMES FREDERICKS

“No, it should go - The people being most affected by this are not non-resident owners. The majority of our clients with a filing requirement are small business’ with residential rental properties in their corporations. The cost of preparing a return for each property puts an un-necessary financial burden on them.  I don’t understand how this tax & filing program will improve the housing crisis.” - Brenda Anderson

“It should go - it is ineffective and confusing.” - Kathlene Bagayao

“UHT should go!” - Natividad T Waldman

“It should go.  It is a ridiculous bureaucratic program. It does not accomplish anything.” - Doris Woodman-McMillan

“Unless the government can adequately demonstrate that the imposition of the tax will meet its objectives it should go.  The average taxpayer should not have to bear the burden of a politically motivated objective.” - Dean Smith

“The tax should go. Makes little sense for Canadian taxpayers. If its required by non-Canadians, then I agree.” -  Joseph Truscott, CPA CA TEP

“It should go!” - Suzanne Beaudoin

“It may as well stay because it’s a tax and it’s going to stay anyway. I do agree with Arlene Dueck: it was a make-work project but look! It brings in money, let’s find another one.” - Mitzi-Lynne Morgan

“It should go.” - Irina Glazounova

“There is no (yes or no) answer here. It should go.” - Karen Kleisdorff

“As it stands now, the UHT is catching the wrong people such as kids on parents’ home title for administrative and inheritance purposes and parents on kid’s home title so kid can get mortgage, while apparently not catching a fair few offshore investors.  The penalties are harsh and will hit just those Canadians who are trying to do the best for their families but who have no idea they are in a “bare trust” situation. The government seriously needs to fix the many flaws before it mandates reporting.”          - Jo Ruelle

“Remove the policy until more work on it has been completed before it is reimplemented.  It is too confusing to the average taxpayer, and even the Ottawa municipal government was confused and harassed many Ottawa area residents with audits - many residents that did not require to submit it, did because they did not understand, or were unsure if the policy applied to their circumstance. The feds need to implement the “KISS” standard to the writing on this policy.” - Gaetan Ladouceur

“I believe in the Province of BC for all Vancouver homeowners, two UHT - any vacant homes. It is my opinion just have one tax, any vacant homes that are owned by non-residents. The Vancouver Empty Home Taxes and BC Speculation Tax needs to be combined with UHT so that one fine is applied to all empty homes, based on the cost of home in Lower mainland.” - Ina

“The UHT should go for now at least until the government has a more easily understood policy.  As it stands, most of my clients who have rental properties get confused by the regulations.  Are they exempt due to Canadian residency? Well, yes… maybe, or maybe not.  Depends - read the fine print.
This, like many tax regulations, do not seem to be well thought out and are implemented based on ideological thought rather than on needs or any sense of pragmatism.” - Robert A Litschel

“It was a make work project that came at the worst time possible.” - Arlene Dueck

Thanks so much for weighing in with your opinion.  Here’s the thought provoker for February, a common issue for clients from coast to coast: “From a wealth planning perspective, do you think middle aged Canadians should invest in a TFSA instead of an RRSP?”