Canada has enacted the Select Luxury Items Tax Act (the Act), which imposes a “luxury tax” on the sale and import of subject vehicles, subject aircraft and subject vessels (collectively, subject items) that exceed specified price thresholds. Vendors of vehicles, aircraft and vessels should carefully consider the provisions of the Act to determine their registration and reporting obligations. This Alert provides an overview of the application of the luxury tax, as well as registration and reporting requirements. A brief summary of the draft regulations is also provided.
Source: EY