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Underused Housing Tax Act (S.C. 2022, c. 5, s. 10)

Act current to 2023-01-25 and last amended on 2022-12-15. Previous Versions

Underused Housing Tax Act

S.C. 2022, c. 5, s. 10

Assented to 2022-06-09

An Act respecting the taxation of underused housing

[Enacted by section 10 of chapter 5 of the Statutes of Canada, 2022, in force or is deemed to have come into force on January 1, 2022.]

Short Title

Marginal note:Short title

 This Act may be cited as the Underused Housing Tax Act.

PART 1Interpretation and General Rules of Application

Marginal note:Definitions

 The following definitions apply in this Act.

assessment

assessment means an assessment under this Act and includes a reassessment. (cotisation)

bank

bank means a bank as defined in section 2 of the Bank Act or an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act. (banque)

business number

business number means any number (other than a Social Insurance Number) used by the Minister to identify a person for the purposes of this Act. (numéro d’entreprise)

citizen

citizen has the same meaning as in subsection 2(1) of the Citizenship Act. (citoyen)

Commissioner

Commissioner means, except in sections 21, 22 and 83, the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)

common-law partner

common-law partner of an individual at any time means another individual who is the common-law partner of the individual at that time for the purposes of the Income Tax Act. (conjoint de fait)

confirmed delivery service

confirmed delivery service means certified or registered mail or any other delivery service that provides a record that a notice or document has been sent or delivered. (service de messagerie)

credit union

credit union means a credit union as defined in subsection 137(6) of the Income Tax Act or a corporation described in paragraph (a) of the definition deposit insurance corporation in subsection 137.1(5) of that Act. (caisse de crédit)

disaster

disaster means an earthquake, fire, flood, landslide, spill or leakage of oil, gas or another poisonous or dangerous substance or any other natural disaster or dangerous event. (sinistre)

dwelling unit

dwelling unit means a residential unit that contains private kitchen facilities, a private bath and a private living area. (local d’habitation)

excluded owner

excluded owner of a residential property for a calendar year means a person (other than a prescribed person) that is on December 31 of the calendar year

  • (a) Her Majesty in right of Canada or a province or an agent of Her Majesty in right of Canada or a province;

  • (b) an individual who is a citizen or permanent resident, except to the extent that the individual is an owner of the residential property in their capacity as a trustee of a trust (other than a personal representative in respect of a deceased individual) or as a partner of a partnership;

  • (c) a corporation incorporated under the laws of Canada or a province whose shares are listed on a stock exchange in Canada for which a designation under section 262 of the Income Tax Act is in effect;

  • (d) a person that is an owner of the residential property in their capacity as a trustee of

    • (i) a mutual fund trust as defined in subsection 248(1) of the Income Tax Act,

    • (ii) a real estate investment trust as defined in subsection 122.1(1) of that Act, or

    • (iii) a SIFT trust as defined in subsection 122.1(1) of that Act;

  • (e) a registered charity as defined in subsection 248(1) of the Income Tax Act;

  • (f) a cooperative housing corporation, a hospital authority, a municipality, a public college, a school authority, or a university as those terms are defined in subsection 123(1) of the Excise Tax Act or a para-municipal organization as defined in section 1 of Part VI of Schedule V to that Act;

  • (g) an Indigenous governing body as defined in section 2 of the Department of Indigenous Services Act or a corporation wholly owned by such a body; or

  • (h) a prescribed person. (propriétaire exclu)

fair rent

fair rent, in respect of a residential property for a calendar year, means

  • (a) the amount determined in prescribed manner in respect of the residential property for the calendar year; and

  • (b) in the absence of a manner prescribed under paragraph (a) in respect of the residential property for the calendar year, the amount that is 5% of the taxable value in respect of the residential property for the calendar year. (loyer raisonnable)

hazardous condition

hazardous condition, in respect of a residential property, means any of the following circumstances (other than prescribed circumstances):

  • (a) a structural component of the residential property, including a roof, foundation, external walls, interior supporting walls, floors and staircases, is defective or damaged;

  • (b) oil, gas or another poisonous or dangerous substance is present in the residential property;

  • (c) any other condition relating to the residential property that is hazardous to the health or safety of its occupants; or

  • (d) prescribed circumstances. (condition dangereuse)

judge

judge, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. (juge)

long-term lease

long-term lease, in respect of land, means a lease, licence or similar arrangement under which continuous possession of the land is provided for a period of at least 20 years or a lease, licence or similar arrangement that contains an option to purchase the land. (bail de longue durée)

Minister

Minister means the Minister of National Revenue. (ministre)

month

month means a period beginning on a particular day in a calendar month and ending on

  • (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or

  • (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month. (mois)

officer

officer means, except in the definition specified Canadian corporation in this section and in section 59, a person who is appointed or employed in the administration or enforcement of this Act. (préposé)

owner

owner of a residential property means a person that is identified as an owner in respect of the residential property under the land registration system or other similar system applicable where the residential property is located, or that could reasonably be considered to be an owner in respect of the residential property based on such a system, and includes a person that

  • (a) is a life tenant under a life estate in respect of the residential property,

  • (b) is a life lease holder in respect of the residential property,

  • (c) has, under a long-term lease, continuous possession of the land on which the residential property is situated, or

  • (d) is a prescribed person,

but does not include

  • (e) a person that gives continuous possession of all the land on which the residential property is situated to persons referred to in paragraph (b) or (c), or

  • (f) a prescribed person. (propriétaire)

ownership percentage

ownership percentage, in respect of a particular owner of a residential property for a calendar year, means

  • (a) a prescribed percentage; or

  • (b) if no percentage is prescribed under paragraph (a),

    • (i) if there are two or more owners of the residential property on December 31 of the calendar year

      • (A) if the land registration system or other similar system applicable where the residential property is located indicates that the particular owner holds a percentage of the ownership in respect of the residential property, that percentage, and

      • (B) in any other case, the percentage that is equal to 100% divided by the number of owners of the residential property, and

    • (ii) in any other case, 100%. (pourcentage de propriété)

permanent resident

permanent resident has the same meaning as in subsection 2(1) of the Immigration and Refugee Protection Act. (résident permanent)

personal representative

personal representative, in respect of a deceased individual, means the executor of the individual’s will, the liquidator of the individual’s succession, the administrator of the estate of the individual or any person that is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the estate or succession of the individual. (représentant personnel)

prescribed

prescribed means

  • (a) in the case of a form or the manner of filing a form, authorized by the Minister;

  • (b) in the case of the information to be given on or with a form, specified by the Minister;

  • (c) in the case of the manner of making or filing an election, authorized by the Minister; and

  • (d) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. (Version anglaise seulement)

property tax

property tax means a tax levied by a province, provincial agency or municipality to finance services ordinarily provided by municipalities in Canada and computed by applying one or more rates to all or part of the assessed value of real or immovable property. (impôt foncier)

record

record means any material on which representations, in any form, of information or concepts are recorded or marked and that is capable of being read or understood by a person or a computer system or other device. (registre)

residential property

residential property means property (other than prescribed property) that is situated in Canada and that is

  • (a) a detached house or similar building, containing not more than three dwelling units, together with that proportion of the appurtenances to the building and the land subjacent or immediately contiguous to the building that is reasonably necessary for its use and enjoyment as a place of residence for individuals;

  • (b) a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real or immovable property owned, or intended to be owned, apart from any other unit in the building together with that proportion of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the house, unit or premises and that is reasonably necessary for its use and enjoyment as a place of residence for individuals; or

  • (c) a prescribed property. (immeuble résidentiel)

specified Canadian corporation

specified Canadian corporation, in respect of a calendar year, means a corporation that is incorporated or continued under the laws of Canada or a province other than a corporation that is, on December 31 of the calendar year

  • (a) a corporation in respect of which the following persons have ownership or control, directly or indirectly, of shares of the corporation representing 10% or more of the value of the equity in the corporation or carrying 10% or more of the voting rights under all or under some circumstances:

    • (i) an individual who is neither a citizen nor a permanent resident,

    • (ii) a corporation that is incorporated or continued otherwise than under the laws of Canada or a province, or

    • (iii) any combination of individuals or corporations referred to in subparagraphs (i) and (ii);

  • (b) a corporation without share capital having

    • (i) a chairperson or other presiding officer who is neither a citizen nor a permanent resident, or

    • (ii) 10% or more of its directors who are neither citizens nor permanent residents; or

  • (c) a prescribed corporation. (personne morale canadienne déterminée)

specified Canadian partnership

specified Canadian partnership, in respect of a calendar year, means

  • (a) a partnership, each member of which

    • (i) is, on December 31 of the calendar year, an excluded owner or a specified Canadian corporation, or

    • (ii) would be, on December 31 of the calendar year, an excluded owner if paragraph (b) of the definition excluded owner were read without reference to “or as a partner of a partnership”; or

  • (b) a prescribed partnership. (société de personnes canadienne déterminée)

specified Canadian trust

specified Canadian trust, in respect of a calendar year and a residential property, means

  • (a) a trust under which each beneficiary having a beneficial interest in the residential property is, on December 31 of the calendar year, an excluded owner or a specified Canadian corporation; or

  • (b) a prescribed trust. (fiducie canadienne déterminée)

tax

tax means tax payable under this Act. (taxe)

taxable value

taxable value, in respect of a residential property for a calendar year, means an amount that is

  • (a) a prescribed amount; or

  • (b) if no amount is prescribed under paragraph (a), the greater of

    • (i) the value established in respect of the residential property by an authority that has the power by or under an Act of Parliament or the legislature of a province to establish the assessed value of real or immovable property for the purpose of computing a property tax, and

    • (ii) the residential property’s most recent sale price on or before December 31 of the calendar year. (valeur imposable)

 
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