tax on sailboat canada

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CANADA: NEW LUXURY TAX ON BOATS GOES INTO EFFECT SEPT. 1, 2022

The federal government  implement the new luxury tax on boats on September 1, 2022.

Therefore, all boats (2019 and newer) that will be sold on or after September 1, 2022 will be taxable, even if the purchase contract was signed well before this date.

However, it appears that contracts signed before December 31, 2021 are exempt.

According to the information available, this new tax will be applicable on both new and used boats (for 2019 and more) of more than $250,000 CAD, is applicable for boats sold by a Canadian dealer but excludes this new tax for boats that are already registered in Canada (before sept 1, 2022, taxes in order) and owned by an individual.

So an individual can sell his boat without this luxury tax which is not applicable for a sale between private individuals (via a broker).

The luxury tax is payable only once for the same boat.

A transaction involving a boat imported from the United States may also be exempt from the luxury tax if it can be shown that it was also originally registered elsewhere than in Canada but before Sept. 1, 2022. So a boat from 2019-2020-2021-2022 (until Sept 1, 2022) can be imported in Canada without the famous luxury tax (some conditions apply, must be validated beforehand).

There is a bit of confusion about whether the luxury tax will apply to used boats of 2019 to 2023 ($250,000 CAD and up) sold by dealers.  We will see in the coming weeks the notices from the Canada Revenue Agency CRA.

You can choose between 10% of the contract value or 20% of the excess of $250,000, whichever is less.

GST and QST apply to this new tax. So, it is a tax on top of existing taxes.

We are waiting for more details on how this will be applied, it is always the finer details that are important.

So acquiring a boat acquired in the United States that remains in the United States will not be subject to this new tax.  It is the same as for the two taxes GST AND QST.

At this time, there are many questions that remain unanswered.

The brokers at Ita Yachts Canada are on keeping on top of this news.

Here is a link to the Government of Canada website about this new tax.

Ita Yachts Canada offers the information regarding this new tax in good faith but is not able to guarantee the accuracy of the information regarding all details of this new tax. It is the buyer’s responsibility to instruct their agents or attorneys to verify and validate the information of their choice. 

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Luxury tax on vessels, september 1, 2022.

Beginning September 1, 2022 certain vessels imported into Canada will be subject to Canada's new Select Luxury Items Tax Act . This A ct is a revenue generating tool for the government that is directed at affluent Canadians who can afford to purchase these luxury vessels.

The tax will be payable on subject vessels , valued at $250,000.00 CAD or more, at the lesser rate of 20% of the value above $250,000.00 CAD OR 10% of the full value of the subject vessel (inclusive of any duties payable). The tax is also payable on improvements made to subject vessels as well as leased vessels.

Under subsection 2(1) of the Act, a subject vessel is a boat, ship or craft that is designed to be used solely or partially in the water, regardless of whether it has an engine and is manufactured after 2018 that is designed or adapted for leisure, recreation or sport activities.

Specific examples of vessels that could be subject to the regulations are: sailboats, motorboats, yachts, and other pleasure crafts.

A vessel that has already been registered with a government before September 2022, is excluded from this definition, provided that possession was also transferred to the user of the vehicle before this date.

In general, the following vessels are also considered exempt from the Luxury Tax:

• Floating homes (structures that are composed of a floating platform and a building designed to be occupied as a place of residence for individuals that is permanently affixed to the platform)
• Commercial fishing vessels
• Cruise ships

How Is The Tax Calculated?

The tax will be payable at the lesser of 20% of the value above $250,000.00 CAD OR 10% of the full value of the boat plus any applicable duties.

Vessel valued at $400,000.00 CAD Duty rate 9.5%: $38,000.00 Value subject to Luxury Tax: $438,000.00 Amount over 250K: $188,000.00

Pay whichever is lesser:

10% of full value 438,000 x 10% = 43,800

20% of value above 250K 188,000 x 20% = 37,600

Amount of Luxury Tax payable: $37,600 CAD

Duties, taxes and other fees also payable at the time of importation: Duty $38,000.00, GST $23,780.00 and any service fees from your service provider.

Commercial Importations 

Importers, including manufacturers, wholesalers and retailers, who are in the business of selling subject vessels in Canada are required to register with the Canada Revenue Agency (CRA) either online or by submitting an L500 application. This allows for the luxury tax payment to be deferred until the sale of the vessels to the consumer or registration of the vessels for your own use. Registrants are also required to file quarterly reports informing CRA their luxury tax payable using Form B500, Luxury Tax and Information Return for Registrants .

Personal And Own Use Importations 

Registration with the CRA is not required. Payment of Luxury Tax is required, unless the written contract for the sale of the vessel was completed prior to 2022.

Penalties for failing to register when required, claiming to register when not, or non-payment of the luxury tax, depend on the infraction and range from $1,000 to 150% of the luxury tax payable.

Do you need help determining if your imports are subject to this Luxury Tax, or how much you could expect to pay to import a vessel? Contact our Trade Advisor Services for assistance.

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How will Canada’s new luxury tax on boats affect you?

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If you’ve been eyeing a new boat for the cottage and are worried that the new luxury tax is going to scuttle the deal, take heart. Depending on what’s on your wish list, your new boat may not even be affected.  On April 19, the federal government put forth their 2021 budget and announced a luxury tax on the retail sale of new boats priced over $250,000. The new tax affects recreational powerboats, sailboats, and yachts (personal watercraft and floating homes are exempt). It also applies to new imported boats. 

Though pricing varies greatly by make and model, cottage-type boats likely to retail for more than $250,000 include high end wake and tow boats (e.g., 25-foot Super Air Nautique ) and center console offshore fishing boats (e.g., 28-foot Boston Whaler ) . It’s worth noting that there are many high-quality boats in both of these categories that cost less than $250,000. Cabin cruisers, power cruisers, and motor yachts, many of which cost over $250,000, will also be affected by the tax. These boats are popular in places like Georgian Bay, Ontario and have sleeping, cooking, and bathroom accommodations for overnighting or going on extended cruises. The prices reflect the added amenities, starting at $100,000 and running into the millions . 

In practice, the tax would be calculated as the lesser of 10 per cent of the full value of the boat or 20 per cent of the value above $250,000. So, for instance, a $350,000 power cruiser would be charged $20,00 in luxury tax . GST/HST is applied to the final sales price (including the luxury tax) . In Ontario, for example, the buyer would pay additional HST of $2,600 ($20,000 X 13 per cent).

From the government’s perspective, if you can afford a yacht–or any boat over $250,000–then you can afford to pay a little more tax on it. “If you’ve been lucky enough, or smart enough, or hard-working enough, to afford to spend $100,000 on a car, or $250,000 on a boat – congratulations!” wrote Finance Minister, Chrystia Freeland, in the budget’s forward , “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.”  

Industry advocates, like National Marine Manufacturers Association (NMMA) Canada, are concerned about the negative impact the luxury tax will have on boaters, dealers, and small communities with boating economies. “ We are ready to work with the government to find new ways to generate revenue,” said Sara Anghel, NMMA Canada CEO, “But we simply can’t support a new tax that would severely damage the boating industry, put thousands of good jobs at risk, and potentially put government finances further into the red.” According to NMMA Canada analysis the impact would include an 18-22 per cent drop in sales volume and losses of $543 million to $670 million for businesses in the recreational boating sector . The part of the budget containing the luxury tax won’t be tabled until the fall and, in the meantime, Anghel plans to fight for amendments and removal. She encourages concerned cottagers to reach out to their local MPs on this issue.

For those eagerly anticipating the delivery of their new boats this summer, there’s no need to worry. The luxury tax comes into effect January 1, 2022.

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IMPLEMENTATION OF THE NEW LUXURY TAX ON BOATS

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Buying a pleasure craft

From: Transport Canada

If you are buying a pleasure craft (recreational boat) in Canada, you need to make sure it meets legislative requirements (such as those in the Small Vessel Regulations ). Before you operate your pleasure craft, you may need to get a Pleasure Craft Licence and/or a Pleasure Craft Operator Card.

Before you buy a pleasure craft

Before you buy a pleasure craft in Canada, you should make sure it complies with the following requirements:

Hull Serial Numbers only became mandatory on 1 August 1981. Vessels constructed prior to this date will not have a Hull Serial Number.

• Changes to the boat over time may mean that the compliance notice is no longer valid. If you are thinking about buying a used boat, make sure that it still meets the construction standards. You can hire a marine surveyor to examine the boat and let you know what changes (if any) need to be made to bring it up to the standard. You must make sure that a boat you own meets the relevant standard before you operate it.

A Canadian Compliance Notice is not required for a vessel imported for personal use, a vessel used exclusively for racing, or a vessel of open construction built using traditional methods.

• The Canada Border Services Agency (CBSA) will ask you for specific documents as well as information on the boat and the seller to confirm the sale and assess the duties and taxes on the boat. Before buying the boat, contact the CBSA to find out what you will need from the seller to bring the boat to Canada.
• If you will be towing the boat on a trailer, you should know that a trailer is considered a motor vehicle (with requirements that are different from those that apply to your boat). Contact the CBSA to learn more. If you are buying a trailer, contact your provincial or territorial transportation office to learn about any requirements that may apply.
• Since there may be export requirements in the country where you plan to buy the boat (and the trailer if you are buying one), contact the authorities in that country to find out what they are.

After you buy a pleasure craft

Depending on the characteristics of your boat, you may need to obtain a Pleasure Craft Licence from Transport Canada.

Also, before you operate your recreational boat you may need to get a Pleasure Craft Operator Card or otherwise ensure that you meet the requirement for proof of pleasure craft operator competency .

For information on safe boating, contact the Office of Boating Safety or refer to the Transport Canada Safe Boating Guide.

Safe Boating Guide (PDF, 5.5 MB)

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Purchasing a boat from Canada and importing to the US

• Thread starter PDReynolds
• Start date Jan 22, 2013
• Forums for All Owners
• Ask All Sailors

Hi Everyone, I am looking at purchasing a boat that is located in Annapolis, but the flag of registry is Canada. I believe the boat is manufactured in the US by Beneteau. Can some one help me plan for this? I will be registering my boat in Rhode Island. What steps would I need to do associated with US Customs. thanks  

Check and see what are the tax implications and consider maintaining the Canadian ownership registry if it would pose a significant advantage. The state of Rhode Island is only likely to care that you register the boat and pay the decal yearly fees.  

Canada needs their 13% - 15% provincial tax for any boat purchased and registered in a Canadian province. If I am not mistaken registration would be tied to country of residence also. I am not so concerned about RI, but more about the US border, or what the local port of entry will require.  

PDReynolds said: Canada needs their 13% - 15% provincial tax for any boat purchased and registered in a Canadian province. If I am not mistaken registration would be tied to country of residence also. I am not so concerned about RI, but more about the US border, or what the local port of entry will require. Click to expand

waternwaves

I have seen this done to take advantage of the exchange rate. there are a few pitfalls, especially if the hull already has a convoluted title through the NVDC However, If you take posessions in international waters, and take the boat back to the US, you absolutely must have with you fully signed and detailed transaction documents and bills of sale that exactly match the names and IDs of the boat at each point in its past. Any slight difference in the history of the boat can make getting current US Coast guard registration a tedious process. customs/Homeland security can provide you with the necessary forms required on bringing the vessel in, but I have seen that is much easier than getting corrected docs through the NVDC. One of the things that will be difficult to document is the previous history. The us NVDC will have record if the boat started as a US vessel, however if it was exported to a dealer in Canada..........who knows. I saw an american built boat, originally documented, expired, sold to canada, expired, registered in province, Canadian national registration reapplied for, and through all this and errors in the Hull ID and first two vessel owners name. Then came the difficulty of deregistering a boat when you are not a canadian, it seems only the previous owner can do that in canada. (another stumbling block) and of course we cannot have registration current in 2 countries now could we???? When it came time to re-import that boat back from canada..... well it can be fun. IT can be a trying process. IF it was not for the professionalism and can do attiide of the NVDC, that boat would probably be still sitting in Western Canada.. Talk with the current owners, Get copies of all current documents, if not current at this time, make the registration current before the sale. Dont skip steps. Dont let anyone die during the process. have fun.  

Not necessary to Doccument your boat with the NVDC. Nice for the bank if you can, but difficult to dredge up all that history.  

I bought my used Hunter 33.5 from a broker in Toronto, Canada. I live in Rochester, NY and also border Lake Ontario. I paid the broker an agreed upon price. They did not charge tax because the boat was leaving Canada. When I sailed it to Rochester, New York, I had to call the US Customs folks and explain that I bought a US made boat and sailed it back to the US from Canada. There was no problem doing this. I then had to register the boat with the NY Department of Motor Vehicles. They collected sales tax on the amount I paid. I then documented the boat myself with the US Coast Guard. I filled out their forms and mailed it in. The documentation certificate was sent to me a couple of months later as I recall.  

Very interesting. Another twist here is I cannot document the boat with the US coastguard. I am a Canadian citizen and therefore must register the boat in a state. I am living and working in New England So the boat is sitting on the hard in Annapolis. I am planning to launch and sail her to Rhode Island and keep her near my home. Appreciate everyone's thoughts here. I have not placed the offer on the boat yet  

Bob 04 H260

PDReynolds said: Very interesting. Another twist here is I cannot document the boat with the US coastguard. I am a Canadian citizen and therefore must register the boat in a state. I am living and working in New England So the boat is sitting on the hard in Annapolis. I am planning to launch and sail her to Rhode Island and keep her near my home. Appreciate everyone's thoughts here. I have not placed the offer on the boat yet Click to expand

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How Canada's luxury tax on cars and boats works

In simple terms, the tax applies to cars and private aircraft that cost more than $100,000 and to boats or yachts of over $250,000

Article content

A boat has sometimes been described as a hole in the water into which you pour money, and that witticism has become more apt since Canada’s new Select Luxury Items Tax Act came into effect on Sept. 1, 2022.

By imposing a substantial new tax on luxury automobiles, airplanes and boats, the federal government has stated that it expects to increase federal revenue by $604 million over the first five years. The move is in line with the current government’s promise to ensure “that all Canadians and businesses contribute their fair share to a stronger economic recovery.”

The new luxury tax is one of several proposed measures intended to achieve this goal, along with higher corporate taxes, the establishment of a minimum 15-per-cent tax rule for “top-bracket earners” and a crackdown on “aggressive tax planning and avoidance.”

How much tax is payable?

In simple terms, the luxury tax applies to cars and private aircraft that cost more than $100,000 and to boats or yachts of over $250,000. The tax payable is 10 per cent of the total retail cost, or 20 per cent of the amount by which the cost exceeds the price threshold, whichever is lower. For example, the tax on a car priced at $120,000 would be 20 per cent of $20,000 ($4,000), in preference to 10 per cent of $120,000 ($12,000).

Products manufactured in 2018 or earlier are exempt, as are cars, planes and boats used for utilitarian purposes only, such as floating or mobile homes, ambulances and rescue aircraft, or, to use one example offered by the Finance Department, speedboats used by a school to teach waterskiing.

“An important detail is that this tax is applicable to the vendor, which is quite different from an HST or GST that the consumer pays,” says Dino Infanti, Vancouver-based partner and national leader for enterprise tax with KPMG in Canada.

News and insights of interest to Canada's high-net-worth individuals and families.

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Vendor responsibilities

Infanti says that vendors “need to be registered, and they’ll have to file a luxury tax return.”

Those in the business of selling these luxury items – manufacturers, wholesalers, retailers or importers – must complete an application process to register themselves. Tax officials have estimated that it may take about 30 days to complete the process.

A car-leasing company that does not normally sell cars as part of its core business is not required to register or to pay any luxury tax. However, if a company usually both sells and leases cars, it is required to register.

Vendors need be registered. As with many taxes, failing to comply may result in penalties, and those penalties could be significant, Infanti says.

When is the tax applied?

The luxury tax was first introduced as part of Bill C-19 in April of 2022. Subsequently, amendments to the legislation were introduced, including one that could have set a different coming-into-force date for certain aircraft than for cars or boats. However, in July 2022, the government made it clear that the Sept. 1 date would apply to all “subject items,” including aircraft.

Upgrades are taxable, too

For registered vendors, it gets even more complicated. Extra features, accessories or upgrades installed within a year of the initial acquisition are subject to the tax. This might have the effect of pushing the selling price over the tax-exempt threshold, thus causing a vehicle to become taxable when it would not have been in its pre-modification state.

For a car, taxable upgrades include custom rims or seats, an audio system or a performance exhaust system. Upgrades that would be included in the cost of a vessel could include “custom cabinetry; onboard lighting; a navigational chart plotter; and a satellite voice and data system.” Modifications that are specifically intended to adapt the item for use by someone with a disability are not included in the calculation.

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It’s important to note that the luxury tax is considered as part of the total price, so GST or HST are levied on top of the tax amount.

Dino Infanti points out that “a question one might have is whether the price threshold might increase; it remains an open question as to whether these thresholds would be indexed to inflation.”

The good news for consumers is that they will not have to calculate the tax themselves. However, Infanti says, “for those who are in this asset class, at the end of the day, the vendor is going to be subjected to this tax, so the consumer is going to pay more.”

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Travellers Temporary Importation and Retention of Foreign Vessels in Canada by Non-residents

In this section.

• Information for Marine Service Providers

Requirement to report

Recreational boaters must present themselves to the Canada Border Services Agency (CBSA) each time that they arrive in Canada.

How to Report

When entering Canada by water, you must contact the CBSA by calling the Telephone Reporting Centre at 1-888-226-7277 after arriving at a designated marine site. If towing your vessel into Canada by trailer, you will report to the CBSA at a land Port of Entry. All vessel entries into Canada are recorded and assigned a report number.

If the boat design allows, it is recommended that the CBSA report number be clearly displayed in the vessel’s dock-side window as proof of report. Otherwise, please ensure that your CBSA documentation is available upon request.

Temporarily importing a vessel for leisure use

You are permitted to leave your vessel in Canada if you plan to make a series of visits to Canada throughout the boating season. You must advise the border services officer of your plans at the time of your initial arrival in Canada and provide the officer the anticipated date that the vessel will leave Canada.

Vessels must be removed/leave Canada at the end of the originally declared date, or within 12 months from the date of importation, whichever is earlier.

There are specific conditions attached to the temporary importation of vessels by non-residents:

• The CBSA must grant permission to leave your vessel in Canada between visits.
• It may not be used by Canadian residents.
• It may not be used for commercial purposes.
• It must be exported by the exportation date.

Extension requests

If the vessel cannot be exported by the stated date, you must request an extension at the nearest CBSA office.

Temporarily leaving a vessel in Canada for repair or storage

If you wish to leave your vessel in Canada for repair or storage at the end of the boating season, or if you wish to import your vessel strictly for those services, you or your agent, must provide the CBSA with the following information:

• The work order with details of vessel repairs to be carried out, or the agreement for the vessel storage, or both, if applicable;
• Both the work order and/or storage agreement must show the expected completion date; and
• The documents must also indicate where the vessel will be located.

The vessel will be documented on form E29B and a refundable security deposit may be required.

The maximum vessel retention period in Canada without the payment of duty or taxes is normally 12 months for storage and 18 months for repair. Extensions may be possible. While in Canada for repair or storage, the vessel may not be used for leisure or any commercial enterprise; it may not be sold or leased/rented, and it must be exported upon completion.

At the end of the storage period or once your vessel is repaired, it may not be returned back to leisure use or remain in Canada at the end of the CBSA authorization period. Once your vessel is removed from the storage or repair facility, it must be exported.

If the vessel cannot be exported by the date on the E29B, you must request an extension at the nearest CBSA office.

If the new expiry date will be more than 18 months from the date the vessel was first imported, you will have to submit a written request and explain why the vessel cannot be exported.

Partial goods and services tax (GST) is payable if the vessel remains in storage longer than 12 months and up to 24 months. If the vessel remains in storage for over 24 months full GST is payable.

Authorization to act as agent

In some circumstances, you may ask your service provider to act as your agent. In those cases, the documents presented to the CBSA must include the following information:

• A written and signed authorization allowing the marine service provider to act as your agent
• your full name, home address, and contact telephone number;
• a description of the services to be performed;
• the business name, address, telephone number, and contact person who is authorized to act as your agent; and
• the time frame for which the authorization is given.

Agents must be aware that if a security deposit is required, they will be expected to post it on your behalf.

Export procedures

If the vessel was imported for leisure use during the boating season, and the vessel is being exported before the indicated exportation date, you do not need to report to the CBSA unless specifically instructed to do so.

If you were issued a form E29B, the vessel, along with your copies of the E29B, must be presented to a border services officer for examination and certification of exportation.

If you are exporting the boat by trailer through a land border crossing, you must stop at the CBSA office to present the form E29B to a border services officer for acquittal. If you are exporting the boat by water, you need to visit a CBSA office to report the intended export date and present the E29B for acquittal.

Alternative to Temporary Importation

For unlimited use of your vessel in Canada and access to Canadian repair and storage facilities without any restrictions or authorization from the CBSA, you may choose to import the vessel on a permanent basis and pay the applicable duty and taxes.

The following rates apply for import purposes:

• duty rate ranging from 0% to 9.5% depending on the country of manufacture of the vessel;
• up to 6% duty on motors used by pleasure craft, if applicable; and
• 5% Goods and Services Tax (GST) on the value for duty.

Vessels manufactured in the United States, Canada and Mexico are duty-free but are still subject to the GST.

Upon permanent importation, you may also consider licensing the vessel with Transport Canada. For more information please consult the Transport Canada website .

Compliance Verification

The CBSA conducts random checks at marinas and other service locations to ensure compliance with the temporary importation provisions. If your vessel is not declared, is falsely declared, or is diverted to a use other than that which was approved by the CBSA, you will be subject to enforcement action as provided for in the Customs Act .

Additional information

More information about the temporary importation of pleasure craft by visitors to Canada for leisure use may be found in the Departmental Memorandum D2-1-1, Temporary Importation of Conveyances and Baggage by Non-residents and D2-2-3 Importation of Goods by Seasonal Residents .

Information on temporary importations for storage and/or repair may be found in Memorandum D8-1-1, Temporary Importation (Tariff Item No. 9993.00.00) Regulations .

Details About Importing a Vessel into Canada that You Need to Know

Buying a vessel for recreational or commercial purposes can be exciting. It takes time and effort to finally get the right boat that fits your purpose. It is a huge financial commitment. There are several details about  importing a vessel into Canada   that you need to know. They depend on the different types of vessels that are being sold. The authorities require information about the transactions for security reasons. Here are some of the factors you need to know about what it takes to import a vessel into Canada.

1. Bringing the Boat

It is important to decide whether the boat you are taking into Canada is brought by water or land. It will be your obligation to inform the Canada Customs authorities when the vessel has come into the country. A customs officer is always present to inspect the boat at the border crossing. They will provide you with the right paperwork for processing. It is significant to have with you proof of ownership. The bill of sale is used as a proof in that situation. The tax on the sale price will have to be paid before taking the vessel.

2. Registration

Getting the vessel into Canada is very simple. Registration is an important process that you have to do. The Transport Canada handles all the registration processes. You will need to do the application process. The application and submission of documents can be done online. The border crossing can also be handled by the firm you are using to transport your vessel. The licensed brokers will deal with most of the processes. Expect to come in only when paying the Custom Brokerage fees and Harmonized Sales Tax.

Canada Customs

The Canada Customs are responsible for checking your vessel. You will be required to report that the vessel is in Canada when you arrive at the border crossing. The Canada Customs will require knowing if the boat is being imported. The officer will come to the vessel to scrutinize the boat. He will do all the paperwork right where the boat is secured.

Bill of Sale

The Canada Customs need to see the bill of sale and Deletion From Documentation from the previous owner. In some situations, you will have to provide extra documentation to prove the purchasing price. Things such as web listings and emails can be used to prove the buying price. When they see all these and approve them, you will pay the Harmonized Sales Tax on the sales price.    

It is good to know exactly how much you are going to pay to Canada Customs. The North America Free Trade Agreement has special terms for any vessels built in Canada, United States, and Mexico. This applies when you are importing a vessel into Canada . The vessels built in these countries during a few years are subject to the Harmonized Sales Tax and free from duties. The tax amount is assessed on the day it crosses the border.

For additional information about  vessel registration in Canada , please call us at  +1 (800) 419-9569 (Canada) .

By: National Vessel Registry | July 19, 2023

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Sask. premier says change in federal government the only way to solve carbon tax dispute

'i think canadians ultimately are going to have a say at the polls,' said premier scott moe on thursday.

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Saskatchewan Premier Scott Moe said Thursday that the dispute between several provinces and the federal government over Ottawa's carbon pricing plan likely won't end without a change in the federal government.

Moe and six other premiers have called for a halt to the planned increase to Ottawa's carbon pricing plan — to $80 per tonne from $65 — scheduled for April 1.

After question period in the Saskatchewan Legislature on Thursday, Moe was asked how the relationship between the federal government and the provinces can be mended.

He said that Saskatchewan and Ottawa have been able to find common ground on certain topics, such as the Canada Health Transfer or $10-a-day child care. That's not the case on carbon pricing.

"On this particular topic, it's going to take a change of government and I think Canadians ultimately are going to have a say at the polls," Moe said.

• Premiers Higgs, Smith call on MPs to abandon carbon pricing program
• Trudeau says conservative premiers are lying about carbon pricing

Premiers call for end to carbon pricing

It's another bold statement from Moe, who appeared in front of the federal government operations and estimates committee Wednesday and  called for the entire carbon pricing program to be scrapped .

WATCH | Sask. Premier Moe speaks on carbon tax during federal committee meeting: 

Sask. Premier Moe speaks on carbon tax during federal committee meeting

On Thursday,  Alberta Premier Danielle Smith and New Brunswick Premier Blaine Higgs  appeared in front of the same committee and echoed that call.

Prime Minister Justin Trudeau has challenged the premiers unhappy with the carbon increase to come up with a solution of their own.

Moe, Smith and Higgs have offered the same solution: an alternative greenhouse gas emissions reduction policy that is based on  Article 6 of the Paris climate change agreement .

That article would allow countries to voluntarily work together to transfer carbon credits earned in one country to another country to help them meet their climate change targets, providing none of the emissions are double-counted.

Moe said the effects of inflation being felt across the country make the impending increase of carbon pricing unacceptable.

"Our stance is to remove the consumer carbon tax on everything for everyone," Moe said.

"Whether we implement that cost or whether the federal government implements that cost doesn't change anything, and doesn't achieve what our goal and what our target is."

Carbon pricing

The federal carbon price on fuel, or carbon backstop, applies to Alberta, New Brunswick, Saskatchewan, Manitoba, Ontario, Prince Edward Island, Nova Scotia, New Brunswick, Nunavut and Yukon.

The price on carbon is applied to emitting fuels through  fuel charge rates  that vary based on the amount of CO2-equivalent emissions a fuel generates when burned.

WATCH | Trudeau accuses conservative premiers of misleading Canadians about the carbon tax: 

Trudeau accuses conservative premiers of misleading Canadians about the carbon tax

Federal carbon pricing does not apply in Quebec, British Columbia and the Northwest Territories because they have their own carbon pricing systems that meet the federal standard.

Approximately 90 per cent of the federal government revenues from carbon pricing are returned to households through a rebate program. The other 10 per cent is directed to programs to help businesses, schools, municipalities and other grant recipients reduce their fossil fuel consumption.

Energy minister pushes back

Federal Minister of Energy and Natural Resources Jonathan Wilkinson was in Regina on Thursday.

He brought up the federal carbon pricing scheme, pushing back against Moe and other premiers calling for the end to the program.

Wilkinson said Moe and Conservative Leader Pierre Poilievre would do away with the carbon rebate.

"The only folks who actually end up paying more than they receive in the benefit are people who live in a 6,000-square-foot home, who have a Hummer in their driveway and a boat in their backyard," Wilkinson said.

"And you know what? They should pay more. They are polluting far more."

It's a statement largely backed up by assessments from the Parliamentary Budget Office, which has consistently found that nearly all households receive more from the carbon tax rebate than they pay in direct and indirect costs.

• Analysis How Sask.'s new budget does and doesn't address climate change
• Industrial carbon pricing has three times the impact on emissions as consumer carbon tax: report

Wilkinson also took aim at Moe and the Saskatchewan government for  no longer remitting the federal carbon levy on natural gas .

"Premier Moe has taken this discussion to another level by deciding that he essentially is above the law, that he can determine which laws he will abide by and which he will not," said Wilkinson.

"I'm not sure how, going forward, he will have the moral authority to tell and expect folks who live in this province to obey the laws that he passes through the provincial legislature."

ABOUT THE AUTHOR

Alexander Quon is a reporter with CBC Saskatchewan based in Regina. After working in Atlantic Canada for four years he's happy to be back in his home province. He has previously worked with the CBC News investigative unit in Nova Scotia and Global News in Halifax. Alexander specializes in data-reporting, COVID-19 and municipal political coverage. He can be reached at: [email protected].

With files from CBC's Peter Zimonjic

Related Stories

• Trudeau challenges premiers opposed to carbon tax hike to suggest alternatives to federal levy
• What happens when a provincial government defies a federal law? We're about to find out
• King and other premiers want a say in federal infrastructure plan
• Poilievre wants to topple the Liberal government with a non-confidence motion on the carbon tax

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New – Bare trusts are exempt from trust reporting requirements for 2023

March 28, 2024

Ottawa, Ontario

Canada Revenue Agency

To support ongoing efforts to ensure the effectiveness and integrity of Canada’s tax system, the Government of Canada introduced new reporting requirements for trusts.

In recognition that the new reporting requirements for bare trusts have had an unintended impact on Canadians, the Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 ( Beneficial Ownership Information of a Trust ), for the 2023 tax year , unless the CRA makes a direct request for these filings.

Over the coming months, the CRA will work with the Department of Finance to further clarify its guidance on this filing requirement. The CRA will communicate with Canadians as further information becomes available.

Is your trust a bare trust?

Whether or not an arrangement is a trust or a bare trust is dependent on the specific facts of each situation, as well as the applicable law. Taxpayers may wish to seek legal counsel if they are unsure whether their arrangement is a trust, and what type of trust they have.

More information on bare trusts can be found in our frequently asked questions on the new reporting requirements for trusts .

What are the new trust reporting requirements?

The new trust reporting requirements are applicable to trusts with taxation years ending after December 30, 2023 . Affected trusts are required to file a T3 return, including Schedule 15 , some for the first time.

The T3 Return and Schedule 15 filing deadline for most trusts is March 30, 2024 . Since March 30, 2024 falls on a Saturday, a T3 return will be considered filed on time if the CRA receives it, or it is postmarked, on or before April 2, 2024 (the next business day).

Bare trusts are exempt from this filing requirement for the 2023 tax year, unless directly requested by the CRA.

Still have questions?

Find out more with our answers to frequently asked questions on the new reporting requirements for trusts .

Media Relations Canada Revenue Agency 613-948-8366 [email protected]

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• Canada: Relief for bare trusts from new information reporting requirements

Bare trusts will no longer have to meet new trust information reporting obligations for their 2023 tax year

Relief for bare trusts from new information reporting requirements

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The Canada Revenue Agency (CRA) on 28 March 2024 announced that bare trusts will no longer have to meet new trust information reporting obligations for their 2023 tax year unless they are specifically requested to provide these details.

Specifically, the CRA announced that it will not require bare trusts to file a “T3 Trust Income Tax and Information Return” or Schedule 15, “Beneficial Ownership Information of a Trust” for 2023, unless the CRA directly requests a filing. Before this administrative relief, many bare trusts were preparing to file a T3 return for the first time, and report additional beneficial ownership information on each trustee, beneficiary, settlor, and controlling person (e.g., a protector) under new trust reporting requirements that apply for tax years ending after 30 December 2023, subject to limited exceptions. Read  TaxNewsFlash

Note that affected non-bare trusts, including those that were wound-up in 2023, do not qualify for this relief and will still have to report required trust information in their T3 return for their 2023 tax year by 2 April 2024. 

Read a  March 2024 report prepared by the KPMG member firm in Canada

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.

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