2025 Federal Budget has proposed to eliminate the luxury tax on aircraft – a measure that has been widely criticized by the Canadian aviation industry since its introduction in 2022 under the Select Luxury Items Tax Act (the “SLITA”). Proposed Legislative Changes The Notice of Ways and Means Motion, tabled alongside Budget 2025, formally sets […]
Category Archives: Blog
04
Nov
Nov
When an aircraft is sold in Canada, one often overlooked tax exposure is the recapture of previously claimed capital cost allowance (CCA) deductions. This hindsight can result in a significant and unexpected tax bill from the Canada Revenue Agency (CRA). Fortunately, there are strategic ways to minimize or even avoid this outcome – with proper […]
Blog
Navigating Flight Disruptions During Strikes: Your Rights Under Canada’s Air Passenger Protection Regulations.
18
Aug
Aug
Air Canada is set to cancel flights pre-emptively ahead of a potential strike this Saturday, which will affect travel plans, connecting flights, and summer getaways for hundreds of thousands of Canadians in the coming days. What does this mean for passengers? Below, we address some of the most frequently asked questions to help you understand […]
16
Jul
Jul
Each summer, wildfires sweep across Canada, putting countless communities at risk. Fighting these fires requires a swift and coordinated aerial response. Thankfully, many U.S. operators answer the call, dispatching aircraft and crew for aerial firefighting, medevac, and other critical services on short notice. If you’re a U.S.-based airplane or helicopter operator planning to fly into […]
16
Jul
Jul
In any aircraft transaction, whether you’re buying or selling a business jet, turboprop, or commercial airliner, a pre-purchase inspection (PPI) is a crucial step in the aircraft transaction management process. These inspections help uncover hidden issues that could impact the aircraft’s airworthiness, operability, or market value. More importantly, a structured inspection process—clearly defined in your […]
03
Apr
Apr
WHAT HAPPENED? February 1, 2025: US announced 25% tariff on all Canadian goods imported to US, excluding energy products which are subject to only 10% – effective February 4, 2025. Canada responded with a list of retaliatory tariffs equal to only $30bn and consultations for additional tariff measures on the remaining $125bn in US Imports […]
Uncategorized, Blog
Transport Canada Launches TC AIR App: New Aviation Document Booklets Application Process
05
Mar
Mar
Transport Canada has launched TC AIR, its first-ever mobile app, designed to simplify the application process for Aviation Document Booklets (ADBs). This new digital service will enable student pilots, pilots, flight engineers, and air traffic controllers to apply for a new ADB or renew an existing one quickly and conveniently, all through their mobile devices. […]
18
Feb
Feb
Background On the afternoon of Saturday, February 1, 2025, the Trump Administration announced sweeping tariffs on virtually all Canadian goods imported into the US (pursuant to the “Executive Order”), triggering Canada’s announcement of corresponding tariffs on American goods being imported to Canada (“Order in Council”). On February 3, 2025, following Canada’s commitments on border measures, […]
Tax Advice, Blog
Resolving the Ambiguities surrounding the Canadian Luxury Tax: Insights on Application and Exemptions
04
Feb
Feb
Canada’s federal legislation on luxury items, the Luxury Items Tax Act (the “Act”), was introduced in the 2021 Federal Budget and came into effect on September 1, 2022. The Act imposes a tax on aircraft, calculated as the lesser of: The tax applies at the time of sale, importation, or lease of eligible aircraft, with […]
01
Jan
Jan
Effective December 28, 2024, the International Civil Aviation Organization (ICAO) has implemented increased liability limits for international air carriage under the Montreal Convention, 1999. The Convention deals with the liability of carriers in cases of passenger death and injury, flight delays, and lost, damaged, or delayed baggage and cargo shipments. This article provides an overview […]
