Under new Federal legislation which came into force on January 1, 2023, the “Underused Housing Tax”, if you are a company that owns “residential” property as defined in the Act, you are required to file a UHT return, (Underutilized Home Tax) by April 30 of each year regardless as to whether the property is taxable under the legislation, or face a potential penalty of a minimum of $10,000. The wording of the legislation seems not to exempt companies which own condominium units, each of which is a legally separate property, from having to file the return. Imagine being reassessed 3 years later with $10,000 fines applicable to each unit for each year passed in a portfolio of strata property holdings when the actual property itself was NOT underutilized or not subject to the tax based on simply a failure to file?! Make a note of this and make sure your accountant and your clients are aware.
For more information, consult: https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html