Opinion
Escape Room 2 – The NEW Real Estate Owner Tax Game – High Stakes Edition
By Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr – CEO | Director of CGL Tax
Justin time for Tax Season, we have a new version of our most popular game, but this time you are now trying to convert your Real Estate to tax-Freeland.
No those are not typos.
In 2017, we released Escape Room – The NEW Small Business Tax Game – Family Edition after then Federal Liberal Finance Minister, Bill Morneau, finally released the new version of
the Tax on Split Income (“TOSI”) or the so-called “income sprinkling” rules.
This time, in this game, there are fewer unconditional exits, and the stakes are higher.
So just like I said in December 2017:
“These rules are written like a bad “escape room” game. The way these rules are written, everyone is caught… unless you can escape… and the exits are not clearly marked.”
The talking points in the media have been that the Underused Housing Tax (UHT) Act would only apply to non-resident and foreign owners.
However, what they failed to mention is that many Canadians will be caught by the filing requirement and will have to file or face penalties, even if they won’t owe any tax.
This ain’t your Daddy’s failure to file penalty.
Failing to file a UHT return faces a minimum penalty of $5,000 per individual, per property and $10,000 if you are a corporation.
This makes the failure to file a T1135 Foreign Property form look like pocket change.
So while you may not have to pay any UHT, you still might have to pay even more if you didn’t know you had to file it already this tax season because:
- the Underused Housing Tax Act is not part of the Income Tax Act;
- there are requirements to file even if you don’t owe;
- it is due on April 30 irrespective of your ordinary income tax filing deadline
- the filing is entirely separate from any other tax filing; and
- at the time of this article’s publication, it cannot be e-filed – it must be filled out and sent manually.
The prescribed Form UHT-2900 only came out on January 31, 2023, and applies to 2022.
As a result, you will need to figure out if you must file it by April 30 this year or face a minimum $5,000 penalty, per person, per property, for failure to file.
As this is new legislation with large penalty amounts, some practitioners are unaware if their errors and omissions insurance even includes coverage for these returns. This means you can expect to see extremely high fees for preparing these forms.
Can you think of a better way to navigate the messy rules than by playing a game for you to play this Tax Season?
Escape Room 2 – Rules of the Game
IMPORTANT RULES OF THE GAME: This is not an all-inclusive list. The below information is a high-level summary of the more common areas of concern. You should seek specialist advice on your specific circumstances and how the new rules will apply to you.
1) Were you the legal owner (a person/entity registered on title), jointly or otherwise, of a residential property in Canada as of December 31?
If yes, you are still trapped and get to keep playing.
If not, Congrats! You escaped! You can go back to paying rent or sleeping in your vehicle without having to worry about the UHT.
2) Are you a publicly-traded Trust or Corporation that is incorporated under the laws of Canada or a province and listed on a Canadian Stock Exchange?
If yes, Congrats! You escaped! You may continue working on your Securities filings for your upcoming AGM.
If not, you’re still trapped – keep playing.
3) Are you a Registered Charity, Cooperative Housing Corporation, Municipality, Indigenous Governing Body, Government of Canada, Provincial Government, University, Public College, School Authority or Hospital Authority?
If yes, Congrats! You escaped! You may continue dealing with your annual audit of financial statements.
If not, you’re still trapped – keep playing.
4) Are you an individually wealthy person that does not like to share with others?
For example, you own one or more multiple residential properties – but every single one of them is only in your personal name. No spouse, no corporation, no trust, no partnerships, no friends, no one!
If yes, Congrats! You escaped! You may go back to swimming alone in your pool of wealth.
If not, you’re still trapped – keep playing.
5) Is the only reason you are on the land title because you are currently the executor or administrator of someone’s estate?
If yes, Congrats! You escaped! You may continue to grieve and fill out the mountains of government paperwork while everyone else asks you “where’s my inheritance?”
If not, you’re still trapped – keep playing.
6) Are you an individual Canadian Citizen or Permanent Resident of Canada (under the Immigration and Refugee Protection Act) that does not have a business, farm, or rental property owned with another person that could possibly be viewed as a partnership?
If yes, Congrats! You escaped! You may continue to live in your home, paycheque to paycheque, while your cost of payroll deductions and mortgage interest continue to rise and eat away at it.
If not, you’re still trapped – keep playing.
7) Does your business, farm, or rental property co-owned with another person have a residential dwelling on it?
For example, is your home on the same land title as your farmland or business?
If yes, Congrats! … haha – fooled you! You’re still trapped, and now you get to play the UHT Escape Room Game – Advanced Edition
If not, Congrats! You just made it out – lucky number 7!
Welcome to UHT Escape Room Game – Advanced Edition
In this Edition, everyone must file or face a minimum $5,000 penalty per person on each property.
For example, husband/wife partnership with three residential properties = 2 x 3 x $5,000 = $30,000 penalty if you don’t file!
8) Are you a Specified Canadian Corporation where at least 90% of the ownership and control (direct and indirect) are held by other Specified Canadian Corporations, Canadian Citizens, or Permanent Residents of Canada?
If yes, you have to file but you won’t have to pay. Don’t forget to file by April 30 no matter what your fiscal year-end date is!
If not, you’re still trapped – keep playing.
9) Are you a Specified Canadian Partnership where every member of the partnership is either a Specified Canadian Corporation, or would not have to file if we ignored the whole “partner of a partnership” thing?
If yes, Congrats! You have to file but won’t have to pay.
If not, You’re still trapped – keep playing.
10) Are you a Specified Canadian Trust where every beneficiary of the trust is either a Specified Canadian Corporation, or would have escaped from filing if they were the owner themselves?
If yes, Congrats! You have to file but won’t have to pay.
If not, You’re still trapped – keep playing.
11) In this filing year or last year, were you an owner of a property when another co-owner that owned 25% or more died?
If yes, Congrats! It’s sure a good thing they died! You have to file but won’t have to pay
If not, you’re still trapped – keep playing.
12) Did you die this year or last year (or are you the executor for someone that did and you were not on the land title before they died)?
If yes, then UHT definitely puts the FUN in FUNeral! You have to file, but won’t have to pay – don’t forget to play again next year!
If not, you’re still trapped (but alive) – keep playing.
13) Did you buy the property this year and never owned or had your name on it before in the past decade?
If yes, Congrats on becoming a home-owner, on your first… or second… or third… or… well it doesn’t matter how many homes you have, just as long as you bought it this year. You have to file but don’t have to pay – play again next year!
If not, you’re still trapped – keep playing.
14) Was the property still under construction before April Fools’ Day of the filing year?
If yes, Congrats – this isn’t an April Fools’ prank. You have to file, but don’t have to pay!
If not, You’re still trapped – keep playing.
15) Was the property finished before April Fools’ Day of the filing year, offered up for sale to the public, but never sold or occupied by an individual as a place of residence or lodging during the year?
If yes, Congrats! Isn’t it fun making mortgage payments on a home no one wants? You have to file but don’t have to pay.
If not, you’re still trapped – keep playing.
16) Was the property unable to be lived in for at least 120 consecutive days because of renovations undertaken that occurred in a timely fashion?
If yes, Congrats! As long as you haven’t used this escape door in the last decade, you can now use it. You have to file but don’t have to pay – otherwise, it’s still locked and you keep playing.
If not, you’re still trapped – keep playing.
17) Was the property unable to be lived in for at least 60 consecutive days in the year because of disaster or hazardous conditions caused by circumstances outside the reasonable control of an owner?
If yes, Congrats! As long as you haven’t used this escape door more than once before for the same disaster or hazardous condition on the property you have to file, but not pay – otherwise, you’re still trapped.
If not, you’re still trapped – keep playing.
18) Is the property unable to be accessed year-round because there is no maintained public access during the off-season?
If yes, Congrats! You have to file but don’t have to pay.
If not, you’re still trapped – keep playing.
19) Is the property unsuitable for year-round use as a place of residence?
If yes, Congrats! Keep following that boiled water advisory and burning everything around you to stay warm. The government is providing you with more blessings: you have to file but don’t have to pay.
If not, you’re still trapped – keep playing.
20) Is the property being used for at least a month consecutively and more than 180 days in the year by you, your spouse or common-law partner, child, or parent who is a Canadian citizen or permanent resident?
If yes, Congrats! You have to file but don’t have to pay – wasn’t this fun? – Be sure to play again next year!
If not, you’re still trapped – keep playing.
21) Is the property the primary residence for you, your spouse or common-law partner, or for your child attending a designated learning institution?
If yes, Congrats! You might have to file an election and your spouse must agree. If you need to convince them, tell them that marriage counselling will be cheaper than the failure to file penalty. That should get them to agree to anything. You have to file but don’t have to pay.
If not, you’re still trapped – keep playing.
22) Is the property a vacation property that is used by you or your spouse or common-law partner for at least 28 days in the year and is located in an “eligible area of Canada” (basically rural enough area where they might get dirty trying to find you)
If yes, Congrats on being able to take 4-weeks of vacation every year – you have to file, but won’t have to pay.
If not, you’re still trapped – and likely still at work – keep playing.
23) Speaking of work – is the property being used by you or your spouse or common-law partner for at least a month consecutively and more than 180 days in the year just while you are working in Canada, and the property relates to that purpose?
If yes, Congrats! You have to file but won’t have to pay.
If not, you’re still trapped – have you considered renting it out?
24) Is the property being rented under a written agreement for at least a month consecutively and more than 180 days in the year to someone paying at least 5% of the property value per year as rent?
If yes, Congrats! You have to file but won’t have to pay.
If not, you’re still trapped – keep playing – and raise that rent! We wouldn’t want anyone to have affordable housing.
25) Is the property being rented under a written agreement for at least a month consecutively and more than 180 days in the year to an unrelated person?
If yes, Congrats! But why are you charging them less than fair-value rent? What kind of slum lord are you? Stop making things affordable! You have to file but won’t have to pay.
If not, you are still trapped and now move on to the UHT Escape Room Game – High Stakes Edition
Welcome to UHT Escape Room Game – High Stakes Edition
In this edition of the UHT Escape Room Game, everyone must ante up and Pay to Play!
26) Is the Fair Market Value of the property lower than both the Property Tax Assessed Value and the most recent purchase price of the property?
If yes, you must have a formal appraisal done effective as of a date in the filing year or before the filing deadline. Then you only have to pay 1% of this value multiplied by your percentage of ownership as your UHT.
If not, either get that appraisal done or be happy that your property has increased in value. In the meantime keep playing.
27) Is the Property Tax Assessed Value more than the most recent purchase price?
If yes, Congrats! Not only has your property tax gone up, but so has your UHT – you owe 1% of this value multiplied by your percentage of ownership.
If no, Congrats on your property being worth less than you paid for it – keep playing.
28) Congrats on making it to the end. If you’ve come this far, it means:
- You own property in Canada;
- You are not a Canadian Citizen or Permanent Resident;
- You are alive, or you’ve been dead for more than two years;
- You don’t rent out the property under a written agreement …or if you do, it is to a relative, and it is way too affordable;
- If it is a vacation property, you don’t use it for 4-weeks of vacation likely because you don’t get 4-weeks of vacation;
- You don’t use the property for more than 30 days consecutively, nor more than 180 days in the year for a work-related purpose;
- You didn’t bother getting a formal appraisal done;
- You paid more than the current Property Tax Assessed value for the property; and
- You wonder why they didn’t just say all this in the first place
Congrats – you get to pay 1% of the purchase price when you last acquired the property multiplied by your percentage of ownership.
Do you feel like you won?
Now… as for next year…
… I want to play a game…
Immigration
Mass immigration can cause enormous shifts in local culture, national identity, and community cohesion
By Geoff Russ for Inside Policy
It matters where immigrants come from, why they choose Canada, and how many are arriving from any single country. When it comes to countries of origin, immigration streams into Canada have become wildly unbalanced over the last decade.
Few topics have animated Canadians more than immigration in the past year.
There is broad consensus among the public that the annual intake of newcomers must fall, and polling shows both native-born and immigrant citizens agree on this. In Ottawa, the Conservative opposition has called for lower numbers, and the Liberal government ostensibly concurs.
While much of the discussion surrounding immigration has focused on economic factors like affordability and the shrinking housing supply, less attention has been paid to the cultural and political changes of welcoming more than 5 million people into the country since 2014.
Specifically, attention must be paid to the possible outcomes of importing hundreds of thousands of people from regions embroiled by war or prone to conflict. This is a necessity as digital technology proliferates and guarantees the world will be interconnected, but not united.
Mass immigration brings in far more than just people. It can cause enormous shifts in local culture, national identity, political allegiances, and community cohesion.
It matters where immigrants come from, why they choose Canada, and how many are arriving from any single country. When it comes to countries of origin, immigration streams into Canada have become wildly unbalanced over the last decade.
In 2023, almost 140,000 people immigrated to Canada from India, while the second-largest intake came from China, with 31,770 people.
This new trend is at odds with Canada’s historical immigration policies, which were more evenly weighted by country. In 2010, the top three national pools of immigration were the Philippines at 38,300 newcomers, India with 33,500, and China with 31,800.
Other countries that Canada has received increasing numbers of migrants from includes Syria, Pakistan, and Nigeria.
Past federal governments took consideration for details like economic needs and capacity for integration. Canadian immigration policy in 2025 should take into account modern communications and conflicts within certain regions as well.
21st century technology continues to advance and innovate at dizzying speeds, giving rise to immersive social platforms and instant messaging platforms like WhatsApp or Signal. This has brought the world closer together, but rather than promoting peace and understanding, it has amplified foreign conflicts and brought them to our own backyards.
Tens of thousands of migrants from the Levant have arrived since 2015, a region where anti-Zionism is deeply ingrained in the cultures, as well as full-blown antisemitism.
Since the outbreak of the Israel-Hamas War in 2023, the entire West has borne witness to antisemitic violence in Europe and North America, often perpetrated by ideologically motivated migrants.
Earlier this year, a Syrian migrant in Germany went on a stabbing spree with the intent of murdering Jews, while last September, Canadian police foiled the plot of a Pakistani man in Ontario who had planned to commit a mass killing of Jews in New York City.
Canada’s political culture has been profoundly affected by these same waves, with demographic changes forcing the federal government to alter its longstanding foreign policy positions. For example, the newly-minted Minister of Industry Mélanie Joly allegedly remarked last year that her shifting stance on the Israel-Hamas war was due to the “demographics” of her Montreal riding.
Montreal itself has become a hotbed of anti-Israeli and anti-semitic violence. Riots, property damage, and the storming of the McGill University campus have been carried out by radicals inspired by Hamas and their allies.
In 1968, the great Canadian thinker Marshall McLuhan co-authored War and Peace in the Global Village, which warned of the consequences of modern technologies erasing the boundaries of the world. McLuhan explicitly cautioned that technology would make the world smaller, and lead to conflict in his theorized global village.
Today, that village is one where Jewish students are routinely harassed on college campuses in Vancouver and Toronto, while synagogues are burnt to the ground in Melbourne. It does not matter whether the victims are Israeli or not. They are seen by their assailants as legitimate targets as part of an enemy tribe.
On May 21, two staffers at the Israeli embassy in Washington DC were shot dead by a man shouting pro-Palestinian slogans.
These sorts of imported feuds go beyond the Middle East. Global tensions in regions like the Indian subcontinent present another threat of foreign-inspired and funded violence, as well as undue political shifts.
India and Pakistan are locked in a long running standoff over the disputed territory of Kashmir.
Last month, several tourists were murdered in Kashmir by militants that India accused Pakistan of backing, leading to several low-level exchanges between the Indian and Pakistani militaries before a ceasefire was brokered. Tensions are far from dissipated, and the possibility of a full-scale confrontation between India and Pakistan remains high.
Considering those two rivals have massive diasporas in the West, a potential war on the subcontinent could radically change domestic politics in countries in Canada, Australia, and Britain.
In 2022, violent clashes broke out between Hindu and Muslim youths in the British city of Leicester following a cricket match between India and Pakistan. The street battles lasted for weeks, and threatened to restart later that year following an escalation in India and Pakistan’s clash over Kashmir. In London, demonstrators from the Pakistani and Indian communities came close to violence.
If a sporting rivalry can inspire hooliganism, a war will spark something far worse, and the globalization of the Israel-Gaza conflict is a glimpse into what that might look like.
There is historical precedent in Canada for how overseas conflicts affect domestic politics.
During the 19th century, hundreds of thousands of Irish—both Catholic and Protestant—emigrated to Canada before and after Confederation in 1867. They brought their religious feuds with them.
The militantly anti-Catholic Orange Order, run by Protestants, became one of the most powerful political forces in Ontario. They held a virtual monopoly on municipal politics in Toronto, excluded Catholics from jobs in the public service, and took part in brawls with the city’s Irish Catholic community for more than 100 years.
Thomas D’Arcy McGee, one of the Fathers of Confederation and an Irish Catholic migrant, was murdered for speaking out against the republican Fenian Brotherhood, which had infiltrated politics both in Canada and the United States.
Integration throughout successive generations mitigates and even practically eliminates the impact of imported conflicts. This was the case with the Irish sectarian divide, though it took over a century to fade away.
Worth noting is that roughly 300,000 Ukrainian refugees currently reside in Canada, having been admitted under a special visa program following the Russian invasion in 2022. It is intended to be temporary, with the expectation of repatriation once a stable peace returns to Ukraine.
Similarly to Irish-Canadians, the vast majority of the established Ukrainian-Canadian community has its roots in pre-modern Canada, and is largely well-integrated into the country’s social fabric. To date, there has been no major violence or anti-social harms inflicted upon their Russian-Canadian counterparts despite the war, or vice-versa.
Furthermore, the Canadian government has a longstanding close relationship with Kyiv, and there is far more trust and transparency regarding intent and collaboration. This is not the case with governments like China and India, the former of whom actively interferes in our elections, and the latter of which has been accused of assassinating dissidents on Canadian soil.
The existence of the iPhone, the internet, and opportunistic foreign governments makes it incredibly dangerous to not change course. That is not to imply that the average migrant is an active foreign agent. But the sheer quantity makes vetting them all a challenge.
Mitigating these threats requires strategic planning when crafting immigration policy.
Other parts of the world like Southeast Asia, Southern Europe, and Latin America are relatively stable and peaceful and are potential sources of newcomers with far lower risk of foreign interference and diasporic violence.
At-play is the stability, unity, and integrity of our political system. Canadian politics must remain fully Canadian in its focus and priorities. That cannot happen if we sleepwalk into becoming a battleground for the rest of the world.
Geoff Russ is a writer and policy analyst, and a contributor for the Macdonald-Laurier Institute.
Censorship Industrial Complex
Alberta senator wants to revive lapsed Trudeau internet censorship bill
From LifeSiteNews
Senator Kristopher Wells and other senators are ‘interested’ in reviving the controversial Online Harms Act legislation that was abandoned after the election call.
A recent Trudeau-appointed Canadian senator said that he and other “interested senators” want the current Liberal government of Prime Minister Mark Carney to revive a controversial Trudeau-era internet censorship bill that lapsed.
Kristopher Wells, appointed by former Prime Minister Justin Trudeau last year as a senator from Alberta, made the comments about reviving an internet censorship bill recently in the Senate.
“In the last Parliament, the government proposed important changes to the Criminal Code of Canada designed to strengthen penalties for hate crime offences,” he said of Bill C-63 that lapsed earlier this year after the federal election was called.
Bill C-63, or the Online Harms Act, was put forth under the guise of protecting children from exploitation online.
While protecting children is indeed a duty of the state, the bill included several measures that targeted vaguely defined “hate speech” infractions involving race, gender, and religion, among other categories. The proposal was thus blasted by many legal experts.
The Online Harms Act would have in essence censored legal internet content that the government thought “likely to foment detestation or vilification of an individual or group.” It would be up to the Canadian Human Rights Commission to investigate complaints.
Wells said that “Bill C-63 did not come to a vote in the other place and in the dying days of the last Parliament the government signaled it would be prioritizing other aspects of the bill.”
“I believe Canada must get tougher on hate and send a clear and unequivocal message that hate and extremism will never be tolerated in this country no matter who it targets,” he said.
Carney, as reported by LifeSiteNews, vowed to continue in Trudeau’s footsteps, promising even more legislation to crack down on lawful internet content.
Before the April 28 election call, the Liberals were pushing Bill C-63.
Wells asked if the current Carney government remains “committed to tabling legislation that will amend the Criminal Code as proposed in the previous Bill C-63 and will it commit to working with interested senators and community stakeholders to make the changes needed to ensure this important legislation is passed?”
Seasoned Senator Marc Gold replied that he is not in “a position to speculate” on whether a new bill would be brought forward.
Before Bill C-63, a similar law, Bill C-36, lapsed in 2021 due to that year’s general election.
As noted by LifeSiteNews, Wells has in the past advocated for closing Christian schools that refuse to violate their religious principles by accepting so-called Gay-Straight Alliance Clubs and spearheaded so-called “conversion therapy bans.”
Other internet censorship bills that have become law have yet to be fully implemented.
Last month, LifeSiteNews reported that former Minister of Environment Steven Guilbeault, known for his radical climate views, will be the person in charge of implementing Bill C-11, a controversial bill passed in 2023 that aims to censor legal internet content in Canada.
The Best US Hopes for Wimbledon 2025: Who Could Break the Curse at SW19?
How Chinese State-Linked Networks Replaced the Medellín Model with Global Logistics and Political Protection
New RCMP program steering opioid addicted towards treatment and recovery
We need an immigration policy that will serve all Canadians
-
Crime11 hours ago
How Chinese State-Linked Networks Replaced the Medellín Model with Global Logistics and Political Protection
-
Addictions12 hours ago
New RCMP program steering opioid addicted towards treatment and recovery
-
Aristotle Foundation13 hours ago
We need an immigration policy that will serve all Canadians
-
Business10 hours agoNatural gas pipeline ownership spreads across 36 First Nations in B.C.
-
Courageous Discourse8 hours agoHealthcare Blockbuster – RFK Jr removes all 17 members of CDC Vaccine Advisory Panel!
-
Health4 hours agoRFK Jr. purges CDC vaccine panel, citing decades of ‘skewed science’
-
Censorship Industrial Complex7 hours ago
Alberta senator wants to revive lapsed Trudeau internet censorship bill
-
Crime14 hours agoLetter Shows Biden Administration Privately Warned B.C. on Fentanyl Threat Years Before Patel’s Public Bombshells