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ARTICLE · 21 NOVEMBER 2022

Luxury Can Be Taxing

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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In the spring of 2021, the Canadian federal government announced a proposed luxury tax on certain aircraft, vehicles and boats.

CanadaTransport
Zvi Halpern-Shavim
Zvi Halpern-Shavim
Auriol Marasco
Auriol Marasco
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In the spring of 2021, the Canadian federal government announced a proposed luxury tax on certain aircraft, vehicles and boats (the Luxury Tax). Much to the critics' dismay, the Luxury Tax came into force on September 1, 2022, under the Select Luxury Items Tax Act (Canada) as part of the Budget Implementation Act, 2022, No.1 (Canada). The following is an overview of the Luxury Tax as it pertains to aviation.

Specified Aircraft

The Luxury Tax applies to sales or leases of aircraft (airplanes, helicopters and gliders) priced or valued over C$100,000 and manufactured after 2018 that meet any of the following conditions (Specified Aircraft):

  • is equipped only with one or more pilot seats and cannot have any other seating configuration;

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