Contributor - Accidents and Regulations

Contributor - Accidents and Regulations

Gordon Gilbert

The Canadian Business Aviation Association said it will “continue its ongoing efforts to seek revisions” to the luxury tax on aircraft despite a recent decision that upholds its legality. In a September 26 response to the CBAA’s challenge to the tax, Canada’s Standing Joint Committee on the Scrutiny of Regulations “determined the Order [establishing the tax] does not violate any of its criteria and has closed the matter without further comment.”
This joint committee decision is the latest government action that failed to exempt aircraft from the 10% tax. The tax on certain aircraft remained unchanged in the current federal budget released earlier this year, although a second recommendation from Canada’s House of Commons Standing Committee on Finance stated that the country’s new budget proposal “exclude aircraft from the luxury items tax act and place a moratorium on the luxury tax on aircraft pending further industry consultation.”
However, there has been at least one positive modification. Shortly after the tax took effect in September 2022, the government incorporated a concession to business aviation by adding the use of aircraft for business to the list of “qualifying flights” that are exempt from the tax. Specifically, an aircraft is qualified if it is conducted at least 90% of the time “in the course of a business of an owner or lessee with a reasonable expectation of profit.”
Nonetheless, the CBAA is adamant. “We remain committed to educating and advocating on behalf of our industry regarding the true cost of the luxury tax on aircraft,” CBAA president and CEO Anthony Norejko told&nbsp;AIN. “In the end, it hurts Canadian jobs and our economic productivity.”

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

CBAA Not Deterred by Recent Ruling on Aircraft Luxury Tax

The group continues its opposition to the classification on aircraft

The Canadian Business Aviation Association will continue its ongoing efforts to seek revisions to the luxury tax on aircraft.

CBAA Not Deterred by Recent Ruling on Luxury Tax

2024 Corporate Aviation Leadership Summit

Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News and issues about aviation maintenance, repair and overhaul (MRO), covering all segments of the aviation industry; and modifications for aircraft and engines. Subjects include product support of aircraft, engines and avionics, MRO company mergers, acquisitions, announcements and personnel, Airworthiness Directives, Supplemental Type Certificate approvals and other topics.

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

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News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

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News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

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