In looking at the link from CRA (https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax/file-return.html) as to how to file the UHT, the instructions say that you can use the submit forms through the Rep/Individual account.
Has anyone tried this as I cannot seem to find where/how this would be submitted. There is no UHT option in the other special elections and Returns drop down of forms or any other section that I can see.
If they can’t be submitted this way, then do we have to use the online forms/DAC method of submitting these.
One would have thought they would have had this figured out by this time, but alas not.
Granted, I’ve only had one, for a holding company that owns a rental property, but I found the process easy. I printed off the forms and completed them manually. The corp was not an “excluded person”, so therefore, was required to file. It had 2 exemptions from paying the tax. First, the property was leased for over 6 months to an arms-length individual evidenced by a signed lease. Second, the corp was exempt from tax because its shareholders are all Canadian. I then went online under RAC to complete the forms. Once you qualify for the occupancy exemption, the remainder of the form, containing the ownership exemption doesn’t show up. Click “submit and you’re done. Mind you, I was on the phone on a Friday night from 4:00-6:00 pm to get the “U” account activated.
If you are going to file the UHT return online you or the client needs to register for a UHT account, then receive the digital access code in order to be able to submit the return online… at least this is how it was last April.
We had pretty good luck faxing the UHT returns to Winnipeg outside of business hours. If you do it that way the CRA registers the client for a UHT account, and then mails out the access codes for next year.
No idea why you’d need an access code, unless you don’t already have authorization. I have a valid authorization on file for my client. Level 2. I called and activated the U account. I completed the form online and submitted it. Printed the confirmation to a pdf and added my manually completed form to it. My client had nothing to do with it.
I remember generating an access code once for a client when I was using Sage to do T4’s and I went through the Sage utility to submit them. So, this was independent of the RAC system. I saved the access code to avoid repeating myself in subsequent years. Other than that, I try to submit forms/documents through RAC.
Maybe things have changed since April. I thought a digital access code was required when I submitted last winter. At that time there was no way of submitting the UHT return from within RAC, you had to go to a separate website.
Ironically though… most of our UHT returns have been assessed now and in each instance the client has received a sheet of paper containing a digital access code for last year and next year… weird.
I remember @Nezzer saying the online filing process is considerably easier than it was when I was filing the returns.
If you have set up a RU account (for a corporation), you can access the online filing via RAC:
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That will get you to the “Ready to file” page - same as when filing outside of RAC:
https://apps.cra-arc.gc.ca/ebci/sres/ext/pub/ntrUhtFlng?request_locale=en_CA
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When you use the UHT filing page age referenced in your initial post @cewashkocma (https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax/file-return.html), click the “Online form…” link:
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For individuals, after logging in to their account via RAC, click on Tax Returns:
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Then there is a link on the right-hand side of the page for UHT:
This is an even simpler version of the form than the one for corporations.
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Correct - you don’t need a digital access code unless you are not a registered EFILER (for example, people who want to file their own UHT returns, similar to people who file their own GST returns still need an access code). On the “Ready to file” page, you click Next, and get to this page:
If you get there through RAC, you will not see the fields for Digital Access Code or EFILE information, and the RU number will already be filled in (and greyed out). If you are filing for an individual, you don’t even get the “Ready to File” page - it’s an even simpler version of the form (easier language, more instructions, etc).
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Thank you for the in depth detail @Nezzer. I’m sure this will help.
When we filed all of our UHT returns back in April there was no option from within Represent a Client to complete the filing. I know this has been an ongoing work in progress for the CRA.
Thank you for the info. Found the link on the right hand side. For some reason thought it was under the submit documents section (cause that is what is referenced on the how to file UHT site). Silly me.
Again, thank you for the instructions and clarification.
So I as said earlier, found the link started filing the return and after I add an authorized contact person and hit next nothing happens. Don’t use a contact person and hit next and nothing happens. This is so frustrating, between the determination of if one needs to file and then filing.
Must admit I am at the point of getting out of this tax gig. These issues in addition to the new overreaching GAAR, the general inability to get reliable information from the department has me wondering if this is worth my time and stress.
Thanks for allowing me to vent. Maybe will just file using the DAC method.
If I use that method do I use my info for the DAC or the client’s?
Apparently, CRA is having technical issues filing through RAC so that is why the next button is not working. If can’t file there, then need to do the DAC method and apparently DAC is based on the client info.
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I’m on RAC right now…filling out a UHT for an individual, and it’s gotten to the “Authorized Individual” (yes/no)…and won’t go any further. Stopped. Stuck. Quit. But stuck on that page. NEXT doesn’t do…anything. Lovely. Was fine up to here.
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It’s an understatement to say that CRA has its problems. I was at the CPA Nova Scotia Practitioners Forum last week and two senior CPA’s reported being recently called by CRA recruiters to fill senior positions. They both said some of their colleagues also received calls. There’s not a snowball’s chance in hell that they’d ever consider it, but I found it interesting.
One of the sessions was given by John Oakey, formerly a tax partner with Baker Tilly, now VP Taxation with CPA Canada. As such, he gets to interact with senior levels of CRA. Those senior managers are themselves frustrated with the state of things. When the government decides on new tax measures, like the UHT, parliament passes the legislation, it goes to finance to do whatever finance does, and then to the CRA for implementation and administration. It’s up to them to figure out how it’s going to work. I can imagine that’s a frustrating task. Meanwhile, we, the practitioners, are tasked with deciding what the rules are, which of our clients it might affect, and answering client queries the day after CBC announces the new measure. It doesn’t help to know CRA are in the dark as well. And short-staffed. When I started out 50 years ago, every accountant in the office had a phone list taped to their desk beside their phone (a ROTARY phone). It listed actual names and direct line numbers for whatever problem you needed solved. And, that person had the knowledge and authority to fix your problem or give you instructions on how to fix it. That no longer exists. I’m not necessarily saying things were better in the ‘70’s, but my wife and I made a combined income of around $7,000, we could go out for the evening, and we could pay a new car off in 3 years. Car loans were around 10%. I’m just saying.
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You don’t need a DAC if you have an EFILE number. If you try to enter both, you get an error. Read the instructions on that page carefully.
In field 001, you enter the client’s SIN or BN. In the bottom section, enter YOUR EFILE number (probably obvious - clients don’t usually have an EFILE number). If you’re using DAC (instead of an EFILE number), my guess is that should be the client’s DAC, but perhaps you can use any DAC (similar to T4/T5 filing)?
/rant
Well, CRA could start by getting rid of their Senior Management and Commissioners who are, as far as I can tell, simply useless and a drain on the taxpayer.
They are TERRIFIED of opening up systems (can’t change addresses, move money from one year to another eg.) and insist on even more lockdowns (try to get a Trust registered by a “regular person” Trustee!). Or even a pro-only phone line…
They refuse to recognize accountants and tax pros as their PARTNERS…because we face exactly the same problems they do…even if from the opposite side. But at the end of the day we have the same client base. We just care more. And we could save everyone time and money.
/rant off because I gotta do work!!
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Back on topic…Thanks @Nezzer - that was a useful post!!
Note that, while you file and there is NO option to print/see/verify what you are submitting when “certifying” (seems to me there is a loophole big enough to drive a truck through, there)… you CAN log into RAC right away and see the return as filed.
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I agree. With every other filing, you get the option to print/save. I was surprised by that. I saved my working copy that I had prepared to use when filing. So, I have that plus the confirmation it was filed. Not ideal, but better than nothing.
I haven’t had that happen to me…yet. But, I have had a few returns for corporations that own rental houses in rural areas, and the CRA system doesn’t accept the postal code as valid. Trying to look up those rural addresses on Canada Post website (find a postal code) exhibits the same problem. I assume CRA is using Canada Post’s database to verify addresses. The one I filed today, I fudged the postal code, so the return could be filed on time. Previously had to fill out the PDF copy and send it in. I tried phoning CRA when I encountered the error today, but there was an estimated wait time of over 2 hours. No thanks. I’ll complain to them another time.
@nezzer I’ve had that same problem just Efiling clients or such…they DO use the CanPost database…and it’s often surprisingly incorrect (yes…it DOES make you wonder!).
They (CRA) often don’t know if it’s a road, an area, or one of two or three locations close by. I have a client at Cowichan Bay and they couldn’t decide if he was at Cobble Hill, Cowichan, or some place I’d never heard of.