CRA indicates that there is no UHTA filing obligation for a building or condo unit that was not substantially completed on December 31

In a technical interpretation issued on March 10, 2023, the GST/HST Rulings Directorate indicated that a property does not become a “residential property” for underused housing tax purposes until its construction is substantially completed (generally, 90% or more) so that an individual is able to reasonably inhabit the premises. Accordingly, if a rental building or a condominium unit was not substantially completed on December 31 of the year, there would be no obligation to include it in a return filed for that year.

The Directorate is also described as indicating that “a property’s assessed value and most recent sale price do not have to be reported on a UHT return (“$0” can be entered on lines 280 and 285) if: (i) no tax is payable in respect of the property, due to an available exemption; and (ii) the UHT return is filed by December 31 of the following calendar year.”

Neal Armstrong. Summary of PwC, "Tax Insights: The underused housing tax – A new compliance requirement for many owners of Canadian residential property," Issue 2023-06R, 5 April 2023 under Underused Housing Tax Act, s. 2 – residential property.