Notice of Ways and Means Motion to amend the Select Luxury Items Tax Act

That it is expedient to amend the Select Luxury Items Tax Act as follows:

Luxury Tax on Aircraft and Vessels

• 1 (1) The Select Luxury Items Tax Act is amended by adding the following after section 1:

  Non-application

  Marginal note:Tax not payable – aircraft and vessels

  1.1 Despite anything in this Act, tax under Division 2 of Part 1 in respect of a subject aircraft or subject vessel is not payable if, in the absence of this section, the tax would become payable under that Division after Budget Day.

• (2) Subsection (1) is deemed to have come into force on the day after Budget Day.

• 2 (1) Subsection 50(6) of the Act is replaced by the following:

  • Marginal note:Registration not required

    (6) Despite subsection (3), a person is not required to be registered for the purposes of this Act as a vendor in respect of

    • (a) subject aircraft or subject vessels after Budget Day; or

    • (b) a type of subject item if the person is a prescribed person.

• (2) Subsection (1) is deemed to have come into force on the day after Budget Day.

• 3 (1) The Act is amended by adding the following after section 52:

  Marginal note:Registrations cancelled – aircraft and vessels

  52.1 Every registration under this Division in respect of subject aircraft or subject vessels is cancelled on February 1, 2028.

• (2) Subsection (1) is deemed to have come into force on the day after Budget Day.

• 4 (1) Section 55 of the Act is amended by adding the following after subsection (3):

  • Marginal note:No requirement to file – aircraft and vessels

    (3.1) Despite subsection (1), a return for a reporting period of a person that begins after December 2025 is not required to be filed if

    • (a) the person is registered under this Division as a vendor in respect of subject aircraft or subject vessels;

    • (b) the person is neither registered nor required to be registered under this Division in respect of subject vehicles; and

    • (c) no tax becomes payable by the person during the reporting period.

• (2) Subsection 55(3.1) of the Act, as enacted by subsection (1), is repealed.

• (3) Subsection (1) is deemed to have come into force on the day after Budget Day.

• (4) Subsection (2) comes into force on February 1, 2028.