Major Canadian Tax Changes Coming In 2022

The Federal Government announced new changes impacting employees with stocks and eligible families who receive the Canada Child Benefit. These changes come in effect in the 2022 calendar year.

Luxury goods tax

The 2021 Federal Budget proposed a tax on certain new luxury cars, aircrafts, and boats that is expected to come into force as of January 1, 2022. The new tax will apply on the following purchases:

• The lessor of 20% of the price above $100,000 or 10% of the full price for luxury cars and aircrafts.

• The lessor of 20% of the price above $250,000 or 10% of the full price for boats.

GST/HST will still apply to applicable purchases and is applied to the final sale price, inclusive of the luxury tax. Therefore, GST/HST is being levied on the tax that is levied on the purchase cost.