Canadians who want to enjoy a cigar while driving their Ferrari to their yachts will be paying a boatload more in taxes after the budget..Finance Minister Chrystia Freeland increased taxes on tobacco by 16% in her Monday budget that also saw a 10% luxury tax put upon expensive cars and yachts..Freeland also put a 3% tax on Google with the new taxes expected to raise $200 billion this year alone..“If you have been lucky enough or smart enough or hardworking enough to afford to spend $100,000 on a car or $250,000 on a boat, congratulations!” Freeland wrote in the budget..“And thank you for contributing a little bit of that good fortune to help heal the wounds of COVID and invest in our future collective prosperity.”.The 10% luxury tax is forecast to raise an average $121 million a year. Motor homes and racing cars are exempt..A 16% tax on tobacco will raise $415 million this year. Vaping products will also be taxed at an undisclosed amount, said Freeland..Cabinet also repeated a 2019 campaign pledge to impose a 3% tax on Google and other digital service multinationals effective January 1, 2022. The tax is worth an average $680 million a year, wrote Freeland..Federal researchers have warned the digital tax is unworkable..“The Income Tax Act cannot be applied to these companies,” the Library of Parliament wrote in a March 5 report..Under the Tax Act sections 250 and 253, a foreign corporation is only taxable if it “produces, grows, mines, creates, manufactures, fabricates, improves, packs, preserves or constructs in whole or in part anything in Canada,” or “solicitors orders or offers anything for sale in Canada through an agent,” wrote researchers..“Foreign companies that use a transactional website to offer their products or services to potential customers in Canada do not need an agent..“Even if the federal government were to amend section 253 of the Income Tax Act to make foreign companies engaging in e-commerce subject to income tax, this amendment would not apply to foreign corporations resident in a country with which Canada has a bilateral tax treaty” such as the US..The finance department said it is counting on new tax revenue to lower record deficits from $354.2 billion in 2020 to $154.7 billion this year, and $59.7 billion in 2022..with files from Blacklock’s Reporter.Dave Naylor is the News Editor of the Western Standard.,dnaylor@westernstandardonline.com,.Twitter.com/nobby7694
Canadians who want to enjoy a cigar while driving their Ferrari to their yachts will be paying a boatload more in taxes after the budget..Finance Minister Chrystia Freeland increased taxes on tobacco by 16% in her Monday budget that also saw a 10% luxury tax put upon expensive cars and yachts..Freeland also put a 3% tax on Google with the new taxes expected to raise $200 billion this year alone..“If you have been lucky enough or smart enough or hardworking enough to afford to spend $100,000 on a car or $250,000 on a boat, congratulations!” Freeland wrote in the budget..“And thank you for contributing a little bit of that good fortune to help heal the wounds of COVID and invest in our future collective prosperity.”.The 10% luxury tax is forecast to raise an average $121 million a year. Motor homes and racing cars are exempt..A 16% tax on tobacco will raise $415 million this year. Vaping products will also be taxed at an undisclosed amount, said Freeland..Cabinet also repeated a 2019 campaign pledge to impose a 3% tax on Google and other digital service multinationals effective January 1, 2022. The tax is worth an average $680 million a year, wrote Freeland..Federal researchers have warned the digital tax is unworkable..“The Income Tax Act cannot be applied to these companies,” the Library of Parliament wrote in a March 5 report..Under the Tax Act sections 250 and 253, a foreign corporation is only taxable if it “produces, grows, mines, creates, manufactures, fabricates, improves, packs, preserves or constructs in whole or in part anything in Canada,” or “solicitors orders or offers anything for sale in Canada through an agent,” wrote researchers..“Foreign companies that use a transactional website to offer their products or services to potential customers in Canada do not need an agent..“Even if the federal government were to amend section 253 of the Income Tax Act to make foreign companies engaging in e-commerce subject to income tax, this amendment would not apply to foreign corporations resident in a country with which Canada has a bilateral tax treaty” such as the US..The finance department said it is counting on new tax revenue to lower record deficits from $354.2 billion in 2020 to $154.7 billion this year, and $59.7 billion in 2022..with files from Blacklock’s Reporter.Dave Naylor is the News Editor of the Western Standard.,dnaylor@westernstandardonline.com,.Twitter.com/nobby7694
