Mr. Chair, this regime is a self-assessment regime. Individuals and entities that own residential property that are not excluded under the statute are required to make that annual declaration every year.
If the annual declaration is not made, there is a penalty regime that applies under the legislation. Later on down the line, if a time comes when a non-resident who hasn't complied with the filing requirements attempts to dispose of the residential property, they would be subject to rules under the Income Tax Act that currently apply on the disposition by a non-resident.
A compliance mechanism that applies to things like capital gains would also be utilized here for ensuring compliance under the underused housing tax.