Every strata and legal section within a strata, is required to file a tax and information return annually
Dear Tony: Our strata corporation is having a dispute over tax filing and financial reports. Are strata corporations required to file a tax return? What if you live in a small strata? We generated almost $18,000 in interest from our contingency fund last year and have a T5 from the bank. Two owners have requested copies of our tax returns for 2020 and 2021 and requested an audit of our books, but we have never filed returns or had an audit done.
Under the strata property act regulations, within eight weeks of the fiscal year end, a strata corporation must prepare an updated financial statement for their accounts, including the operating fund, the contingency reserve fund and any special levy funds. This statement will form the financial balances for reporting on the returns, and the closing balances of the accounts for reporting, will form the opening balances for the next fiscal year.
Even though strata corporations are basically deemed to be non-taxable corporations, it is important to understand that not all strata corporations are exempt from taxation. There are a number of strata corporations that are solely commercial operations, or residential strata corporations that operae commercial or recreational facilities, or residential corporations who generate substantial revenue from rental units, hotel operations, vacation/guest suites, sub lease agreements for signage and communications equipment, where substantial revenue is generated. That revenue may be taxable.
There is no requirement in the strata property act for strata corporations to conduct an audit. An audit must be approved as part of the annual budget along with a line item to approve the funding. Most residential strata corporations pay no taxes because the interest earned on reserve fund or special levies must be deposited to the reserve or levy funds and is not taxable. The best solution is to comply with the legislation and file your tax returns.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Noce: Can a condo board evict an owner's tenant?Alberta condo law, along with condo bylaws, can address disruptive tenants.
Read more »
Busy spring awaits for Blue Jays starter Kevin GausmanBusy spring awaits for Blue Jays starter Kevin Gausman Via longleysunsport
Read more »
Condo gets three bids but sells $37,000 under askingVancouver condo got three offers and the sale completed near the end of January
Read more »
St. Lawrence Market Condo Exudes Warmth And LuxuryUnparalleled warmth and luxury await at this opulent condo at the heart of Toronto's Market Square. realestate properties Toronto luxury housegoals
Read more »
Jewish homeowner offended after condo corporation asked him to remove religious symbol - Calgary | Globalnews.caA Calgary homeowner says his Jewish tradition is being unfairly challenged by the condo corporation. He said they didn't take into consideration his faith.
Read more »
This condo kitchen renovation is fit for a proFor food columnist Lucy Waverman, moving into a smaller kitchen that doubles as a recipe lab required a smart floor plan, clever storage and an induction stove
Read more »