Canadian government revises proposed luxury tax
Canada’s government has revised its luxury tax legislation in what the Canadian Business Aviation Association (CBAA) has called a “huge win” for the domestic sector. The CBAA pointed to “intense lobbying” from itself and the business aviation community as to why the government has taken the decision to “step back”.
New draft legislation published late last week proposes that relief is to be expanded “to take into account qualifying flights that are conducted in the course of a business with a reasonable expectation of profit”.
Previously the government proposed legislation that would potentially have seen all private aircraft purchased in Canada taxed as luxury “personal” aircraft.
Comments on the new legislation are due 11 April, 2022.