Posted on September 7th, 2021 in Domestic Tax

Proposed Luxury Tax – New Details Released

Red Mercedes

The Finance Department has released new information as it relates to the Luxury Tax proposed in the 2021 Federal Budget.

The proposed Luxury Tax (LT) would be applicable to the sale or importation of new vehicles and aircraft with a value in excess of $100,000 and new boats with a value in excess of $250,000 at the time of their sale or importation into Canada (with some sales possibly excluded from the LT if it can be shown that they are designed for commercial use).

In this article, as written by RSM Canada, you can read the summary of what details were released, including how LT will be calculated and how vendors will be required to collect and remit.

Article written by RSM Canada and referenced with permission as a member of RSM Canada Alliance.