Legislation to grow the economy and make life more affordable in Canada has received Royal Ascent
An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures received a Royal Ascent and is now part of Canadian legislation. This act adopts certain restrictions in Canada to slow down the housing price surge and make Canada more affordable for its citizens.
According to the official website of the Government of Canada, among the adopted measures there are:
- A two-year ban on foreign investment in Canadian housing, effective January 1, 2023.
- The introduction of a luxury tax on the sale of new luxury cars and aircraft with a retail sale price over $100,000, and on new boats or yachts over $250,000.
- Tackling the speculative trading that contributes to higher housing prices by making all assignment sales in respect of newly constructed or substantially renovated residential housing taxable for GST/HST purposes.
- Taking the first steps towards the implementation of a publicly accessible beneficial ownership registry of federally incorporated corporations to help counter illegal activities, including money laundering, corruption, and tax evasion.
- Allowing the government to seize and cause the forfeiture and disposal of assets held by sanctioned people and entities, to support Canada’s participation in the Russian Elites, Proxies, and Oligarchs Taskforce in light of Russia’s illegal invasion of Ukraine.
The main changes, however, are a ban for foreign investments in the housing market and the steps to create a publicly accessible register of beneficial owners.
Contact Astra Trust to find out more about the new legislation in Canada.