Canada: Aircraft Luxury Tax

Revised draft legislation published by Canada’s Federal Government proposes that the 20 percent luxury tax on purchases of new private aircraft selling for more than $100,000 is to be relaxed to take into account “qualifying flights that are conducted in the course of a business with a reasonable expectation of profit.” Comments on the revised proposal are due by April 11, 2022. Without this qualification, the previous version of the tax proposal would have applied to virtually all private aircraft sales.