The passing of the federal budget in July has stirred up plenty of conversation around Canada’s upcoming (and retroactive) luxury tax on spendy vehicles. In a nutshell, Ottawa is introducing a levy on the sale or import of certain vehicles and aircraft priced above $100,000; and certain vessels priced above $250,000. The luxury tax will apply to the sale of subject vehicles priced above the $100,000 price threshold, payable at the time the sale is completed. This amount will be equal to the lesser of 10 per cent of its purchase price; or 20 per cent of the difference between its purchase price and the $100k threshold. Set to take effect September 2022, the measure also applies retroactively to sales agreements written after January 1, 2022. Read original article here.
