UHT Filing Deadline Extension: A Good Move?

The Underused Housing Tax has been making headlines, most recently with the last-minute decision on October 31 to extend the filing deadline to April 30, 2024. It’s a move that 85% of tax and financial advisors said they agreed with in responding to our November poll question. However, it’s a nuanced issue that was addressed in many insightful comments. Check them out!

“If they were going to do it, 2:45pm on the day of the deadline is not the correct way to do it. That’s a slap in the face to tax practitioners who were working overtime trying to get it all complete by October 31. What new information could they have possibly had on October 31 that they didn’t have in the days or weeks leading up to the deadline. Also have to remember that this was the second time the deadline was extended by 6 months, that’s quite telling.” - Aaron

“It only makes sense to extend the deadline if the Government is intending to reach out and expand on the explanation of exactly what the UTH is and its specific criteria for inclusion in a more reader friendly way, exactly who and the benchmarks required to be deemed a qualifier and then include a stronger message on the consequences should those who fit the criteria do not file.” - Bruce LaPorte

“There is still a lot of misinformation out there and many people are having issues understanding the UHT.  The government should make a better effort to get the correct info out.  Delaying the deadline (and, coincidentally) making it the same date as usual filing requirements is a better way of presenting it.  They should spend the next few months in a strategic way to educate all those affected.” - Robert A Litschel

“There was enough ambiguity around which Canadian residents are affected by the legislation that was only meant to impact non-residents, that more time was needed.  As it was, the powers that be have changes in the works (thankfully) to correct that ambiguity, so that fewer Canadian residents will be affected by the legislation.  While I appreciate the lately-announced intentions to exempt a greater number of Canadian residents from the filing requirements, I feel badly for those who attempted to be prompt by filing early on a just-in-case-I-have-to basis, and are out the $$$ that they paid to their accountants, for something that they may not have needed to do.  This really rewards the procrastinators and penalizes the conscientious.” - Daniel

“My team bent over backwards to make sure we had all of the UHT returns completed and filed, as required. It was a good move to extend the deadline, but the decision to extend should have happened sooner.” - Kathleen L Mullally

“There seems to be some confusion as to who are required to file. Clearer directives from CRA going forward would be appreciated.” - Randolph Edmead

“Clarification of the rules and process should be provided well in advance of any due date, say at least 30 days, for submittal of documentation. Transparency is important. Those signing deserve the time to review and understand what is involved, and to ask questions if necessary.” - Martin

“It’s nice to have the deadline extended, as long as this extension comes along with further clarification from CRA regarding who is required to file.  If they aren’t going to release more information, then there was no point in extending any further.” - Jodi

“I don’t see what good it will do. Those who are habitual procrastinators don’t care about deadlines. We see that all the time with T1 returns. It just means more chaos around April 30.” - Mitzi-Lynne Morgan

“There will be UHT returns for 2022 and 2023 due on the same date.  This deadline deferral reminds me of the new T3 disclosure filing requirement being deferred multiple times, which is a sign that the new rules were not well thought out. Compliance in filing UHT returns will increase gradually just like filing T1135 forms. Deferring the deadline will not likely increase compliance.” - Terry McBride

Poll question: In your opinion, will the CPP2 premium increase starting January 1, 2024 cause financial hardship to employers and employees?