DFK Tax Digest – 2022 Issue One
- Luxury Tax Update – The 2021 Federal Budget introduced a new “Luxury Tax” on select luxury goods. The budget documents state that, “Budget 2021 proposes to introduce a tax on the sales, for personal use, of luxury cars and personal aircraft with a retail sales price over $100,000, and boats, for personal use, over $250,000. The tax would be calculated at the lesser of 20 per cent of the value above the threshold ($100,000 for cars and personal aircraft, $250,000 for boats) or 10 per cent of the full value of the luxury car, boat, or personal aircraft. This measure would come into force on January 1, 2022.”
- COVID-19 Recovery Subsidies for Businesses – The general Federal COVID-19 support programs available to Canadian businesses are greatly reduced as of October 23, 2021 upon the conclusion of period 21 of the Canada Emergency Wage Subsidy (“CEWS”) and Canada Emergency Rent Subsidy (“CERS”). Although subsidy programs continue to exist, they are more targeted programs that are designed to assist businesses that have seen the largest loss of revenue or have been subject to a qualifying public health restriction. These programs are to be in effect for periods 22 to 28, which end on May 7, 2022. In addition, the Canada Recovery Hiring Program (“CRHP”) that has been in existence since period 17 continues to be available though period 28.