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Lycoming Thunderbolt YIO-390 - 215 - EXP 119 Engine for RV 14A

Nair

Member
Friend
Hi friends,
Does anyone know, whether the new Luxury tax 10% on the full aircraft cost or 20% above 100K that Canadian government has proposed on air crafts is applicable to Home builds / Experimental / parts ?
After hearing that , I am exploring the possibility of buying a Lycoming Thunderbolt engine this year itself for my RV 14A kit ?
I wanted it to be ordered now so that I get it before the end of this year. Though I ordered through Van's I am not sure I will get it this year.
Please help me here with any info. anyone has on this aspect.
Thanks
Sreekumar V Nair
 
It appears to only affect new airplanes with a purchase price over $100,000. I believe it is a one-time tax applied only to the original purchaser of the aircraft. I suspect that it would not apply to the sum of individual parts once those parts are assembled. That is, a $50k engine + $50k airframe + $50k avionics does not equal a new $150k airplane. But that is my interpretation and I am not a tax lawyer.
 

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My concern is that often after registering an airplane in Canada after importation the CRA asks for proof that taxes were paid. If they were to do this and add up receipts they may interpret it the value differently. Perhaps make sure you register the aircraft prior to this tax going into effect.
 
I haven't kept very many of my receipts. Certainty the big receipts, but the receipt from my last ACS order for various nuts and bolts went in the garbage.

COPA has a template email to send to MPs. Not wanting to turn this political, but RV's aren't exactly a luxury private jet. Nobody in Canada is jetting off to a luxury Mediterranean vacation in their RV.
 
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