The Government of Canada recently released draft legislative proposals to implement the luxury tax on boats, vehicles and aircraft.
Announced in the Federal Budget 2021, the Government proposed to introduce a tax on the sales, for personal use, of luxury cars and personal aircraft with a retail sales price over $100,000, and boats, for personal use, over $250,000. The tax would be calculated at the lesser of 20 per cent of the value above the threshold ($100,000 for cars and personal aircraft, $250,000 for boats) or 10 per cent of the full value of the luxury vehicle, vessel/boat, or personal aircraft.
Your comments and review on the legislative proposal on the luxury tax and further response on the results during the consultation period should be provided by April 11th, 2022. The luxury tax is expected to be in place and in effect on September 1st, 2022.
Two notable new provisions contained in these draft legislative proposals are as follows:
- relief is proposed to be provided to after-sale improvements that are made to vehicles, aircraft or vessels purchased below the relevant price threshold; and
- relief for aircraft is proposed to be expanded to consider qualifying flights that are conducted during a business with a reasonable expectation of profit.
You may provide your comments on these draft legislative proposals by April 11th, 2022.
Email: [email protected].
Additional information: