Underused Housing Tax Notice UHTN4 Exemptions for Specified Canadian Partnerships, Trusts and Corporations January 2023

Citizen holding title to partnership property of Canadian-citizen partnership must file return for each property

Example 1

• Since 2018, there has been a partnership of two Canadian citizens (A and B) with only A on registered title as the owner of the property.
• A is an affected owner through A’s ownership as a partner.
• A must file a return for the 2022 year but does not have to pay housing tax for A’s 100% ownership percentage because the partnership is a specified Canadian partnership.
• B is an excluded owner because B is a citizen not owning the property as a partner or trustee.

Citizen holding title to house held in trust for Canadian-citizen beneficiaries must file return

Example 2

• In 2018, two citizen spouses transferred their jointly owned property (a house) to a family trust of which Individual C is the trustee, holding registered title, and their citizen children are the beneficiaries.
• Since C owns as trustee, C must file a return for the 2022 year – but does not have to pay tax for C’s 100% ownership interest because C owns the property solely as the trustee of a specified Canadian trust.
• Corporation owned by citizens and holding title to condo must file return for the property

Corporation owned by citizens and holding title to condo must file return for the property

Example 3

• Individuals D and E own all the shares of a corporation that acquired title to a residential condo unit in 2018. The corporation must file a return for 2022, but has no tax payable because shares representing more than 90% of its equity and carrying more than 90% of the voting rights are held by Canadian citizens.