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Canadian Tax on Boats

TJ
Tim Johnson
Sat, Nov 3, 2007 5:15 PM

I'm planning to leave my boat in a marina in Canada for the period October -
April of each year, for a period of 3-4 years.  In each April, I would
cruise north to Alaska, then return to Canada in October.  I spoke with a
fellow at 1-888-CANPASS about this and he was of the view that this conduct
would make the boat a Canadian boat and thus subject to Canadian tax of 14%.
Ouch!  Can any members of this forum shed any light on this subject?

Timothy A. Johnson, Jr.

Nordhavn 6406

I'm planning to leave my boat in a marina in Canada for the period October - April of each year, for a period of 3-4 years. In each April, I would cruise north to Alaska, then return to Canada in October. I spoke with a fellow at 1-888-CANPASS about this and he was of the view that this conduct would make the boat a Canadian boat and thus subject to Canadian tax of 14%. Ouch! Can any members of this forum shed any light on this subject? Timothy A. Johnson, Jr. Nordhavn 6406
JM
John Marshall
Sat, Nov 3, 2007 5:56 PM

Local scuttlebutt is that Canada is getting tougher on US boats that
winter there. I've talked to some people who were hassled by
authorities last winter.

In your case, it sounds like you have to work with a yard to get an
October to April open work order. You'll need a shipyard to work with
you. Obviously, any official who walks the docs could see through that
excuse, especially if lots of boats are doing it, but it depends on
how vigorously they want to enforce it.

If they get really strict, the Canadian marinas are going to suffer
(there are a lot of US boats there). The current exchange rate isn't
helping. Not sure if their local government tax officials are
sensitive to local business owners, but the Victoria/Sidney region is
famous (infamous?) in Canada for thumbing their noses at Ottawa and
doing their own thing.

As far as letter of the law goes, the most recent info I can find
says, that after October 31:
Americans may leave their boat in Canada during the winter without
paying duty and tax only if repair or maintenace work is to be done by
a bona-fide marina during that time.

Before you can leave your boat in Canada for winter repair, the local
Canadian customs office must be presented with a copy of the work
order. For more information, call their marina division at 519-257-6457.

John Marshall

N55-Serendipity

Sequim Bay, WA

On Nov 3, 2007, at 10:15 AM, Tim Johnson wrote:

I'm planning to leave my boat in a marina in Canada for the period
October -
April of each year, for a period of 3-4 years.  In each April, I would
cruise north to Alaska, then return to Canada in October.  I spoke
with a
fellow at 1-888-CANPASS about this and he was of the view that this
conduct
would make the boat a Canadian boat and thus subject to Canadian tax
of 14%.
Ouch!  Can any members of this forum shed any light on this subject?

Timothy A. Johnson, Jr.

Nordhavn 6406


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Productions, formerly known as Trawler World Productions.

Local scuttlebutt is that Canada is getting tougher on US boats that winter there. I've talked to some people who were hassled by authorities last winter. In your case, it sounds like you have to work with a yard to get an October to April open work order. You'll need a shipyard to work with you. Obviously, any official who walks the docs could see through that excuse, especially if lots of boats are doing it, but it depends on how vigorously they want to enforce it. If they get really strict, the Canadian marinas are going to suffer (there are a lot of US boats there). The current exchange rate isn't helping. Not sure if their local government tax officials are sensitive to local business owners, but the Victoria/Sidney region is famous (infamous?) in Canada for thumbing their noses at Ottawa and doing their own thing. As far as letter of the law goes, the most recent info I can find says, that after October 31: Americans may leave their boat in Canada during the winter without paying duty and tax only if repair or maintenace work is to be done by a bona-fide marina during that time. Before you can leave your boat in Canada for winter repair, the local Canadian customs office must be presented with a copy of the work order. For more information, call their marina division at 519-257-6457. John Marshall N55-Serendipity Sequim Bay, WA On Nov 3, 2007, at 10:15 AM, Tim Johnson wrote: > I'm planning to leave my boat in a marina in Canada for the period > October - > April of each year, for a period of 3-4 years. In each April, I would > cruise north to Alaska, then return to Canada in October. I spoke > with a > fellow at 1-888-CANPASS about this and he was of the view that this > conduct > would make the boat a Canadian boat and thus subject to Canadian tax > of 14%. > Ouch! Can any members of this forum shed any light on this subject? > > > > Timothy A. Johnson, Jr. > > Nordhavn 6406 > _______________________________________________ > http://lists.samurai.com/mailman/listinfo/passagemaking-under-power > > To unsubscribe send email to > passagemaking-under-power-request@lists.samurai.com with the word > UNSUBSCRIBE and nothing else in the subject or body of the message. > > Passagemaking Under Power and PUP are trademarks of Water World > Productions, formerly known as Trawler World Productions.
SD
Steven Dubnoff
Sat, Nov 3, 2007 6:09 PM

I'm planning to leave my boat in a marina in Canada

That is a good, and very popular idea.  As I understand the rules,
you can keep the boat in B.C. without paying tax, as long as the boat
briefly leaves B.C. and returns to the U.S. within a prescribed
interval.  (The problem is that I do not remember the interval -- it
may be every ninety days.) The run from Sidney to San Juan Island is
short and I am sure you can hire a professional to do it for you if
you are elsewhere.

Sidney-area marinas are filled with very expensive boats with U.S.
hailing ports and I personally know of one Krogen owner who kept
their boat there for precisely that reason.  Sidney also has many
services designed to keep boats healthy for affluent absentee owners
and an international airport nearby.

Best,

Steve

Steve Dubnoff
1966 Willard Pilothouse
www.mvnereid.com
sdubnoff@circlesys.com

>I'm planning to leave my boat in a marina in Canada That is a good, and very popular idea. As I understand the rules, you can keep the boat in B.C. without paying tax, as long as the boat briefly leaves B.C. and returns to the U.S. within a prescribed interval. (The problem is that I do not remember the interval -- it may be every ninety days.) The run from Sidney to San Juan Island is short and I am sure you can hire a professional to do it for you if you are elsewhere. Sidney-area marinas are filled with very expensive boats with U.S. hailing ports and I personally know of one Krogen owner who kept their boat there for precisely that reason. Sidney also has many services designed to keep boats healthy for affluent absentee owners and an international airport nearby. Best, Steve Steve Dubnoff 1966 Willard Pilothouse www.mvnereid.com sdubnoff@circlesys.com
RZ
Rob Zanussi
Sun, Nov 4, 2007 2:40 PM

This is news to me. As far as I know there is no tax levied on boats in
Canada. Well, if I were to buy one new here I would pay 6% but there is
nothing levied on used boats nor is there an annual registration fee. I
have never heard of this CANPASS before. Is it part of the Canadian Govt?

Rob Z
Alberta Canada

At 10:15 AM 11/3/2007 -0700, you wrote:

I'm planning to leave my boat in a marina in Canada for the period October -
April of each year, for a period of 3-4 years.  In each April, I would
cruise north to Alaska, then return to Canada in October.  I spoke with a
fellow at 1-888-CANPASS about this and he was of the view that this conduct
would make the boat a Canadian boat and thus subject to Canadian tax of 14%.
Ouch!  Can any members of this forum shed any light on this subject?

Do you realize that in about 40 years we will have thousands of old ladies
running around with tattoos and pierced navels?

This is news to me. As far as I know there is no tax levied on boats in Canada. Well, if I were to buy one new here I would pay 6% but there is nothing levied on used boats nor is there an annual registration fee. I have never heard of this CANPASS before. Is it part of the Canadian Govt? Rob Z Alberta Canada At 10:15 AM 11/3/2007 -0700, you wrote: >I'm planning to leave my boat in a marina in Canada for the period October - >April of each year, for a period of 3-4 years. In each April, I would >cruise north to Alaska, then return to Canada in October. I spoke with a >fellow at 1-888-CANPASS about this and he was of the view that this conduct >would make the boat a Canadian boat and thus subject to Canadian tax of 14%. >Ouch! Can any members of this forum shed any light on this subject? Do you realize that in about 40 years we will have thousands of old ladies running around with tattoos and pierced navels?
RZ
Rob Zanussi
Sun, Nov 4, 2007 2:44 PM

Just an addendum to my first msg. It might be a provincial tax situation as
opposed to a federal one. As someone suggested try calling Canada Customs
or the BC Provincial tax people. I had forgotten about the provincial sales
tax as Alberta does not have any.

Rob Z

At 10:15 AM 11/3/2007 -0700, you wrote:

I'm planning to leave my boat in a marina in Canada for the period October -
April of each year, for a period of 3-4 years.  In each April, I would

Do you realize that in about 40 years we will have thousands of old ladies
running around with tattoos and pierced navels?

Just an addendum to my first msg. It might be a provincial tax situation as opposed to a federal one. As someone suggested try calling Canada Customs or the BC Provincial tax people. I had forgotten about the provincial sales tax as Alberta does not have any. Rob Z At 10:15 AM 11/3/2007 -0700, you wrote: >I'm planning to leave my boat in a marina in Canada for the period October - >April of each year, for a period of 3-4 years. In each April, I would Do you realize that in about 40 years we will have thousands of old ladies running around with tattoos and pierced navels?
JM
John Marshall
Sun, Nov 4, 2007 3:21 PM

The info below pertains to BC... you make a good point, I'm not sure
if its a federal or provincial issue.

CANPASS allows pre-screened people to go enter Canada easily. Even
better is is NEXUS (given its supported by both US and Canada) as it
facilitates clearance both ways.

I've heard these passes don't work between BC and Alaska, so they're
apparently BC and Washington state deals.

NEXUS has to be applied for in person right on the border (at Blaine)
where both Canadian and US guys collaborate with interviews, etc.

John

On Nov 4, 2007, at 6:40 AM, Rob Zanussi wrote:

This is news to me. As far as I know there is no tax levied on boats
in
Canada. Well, if I were to buy one new here I would pay 6% but there
is
nothing levied on used boats nor is there an annual registration
fee. I
have never heard of this CANPASS before. Is it part of the Canadian
Govt?

Rob Z
Alberta Canada

At 10:15 AM 11/3/2007 -0700, you wrote:

I'm planning to leave my boat in a marina in Canada for the period
October -
April of each year, for a period of 3-4 years.  In each April, I
would
cruise north to Alaska, then return to Canada in October.  I spoke
with a
fellow at 1-888-CANPASS about this and he was of the view that this
conduct
would make the boat a Canadian boat and thus subject to Canadian
tax of 14%.
Ouch!  Can any members of this forum shed any light on this subject?

Do you realize that in about 40 years we will have thousands of old
ladies
running around with tattoos and pierced navels?


http://lists.samurai.com/mailman/listinfo/passagemaking-under-power

To unsubscribe send email to
passagemaking-under-power-request@lists.samurai.com with the word
UNSUBSCRIBE and nothing else in the subject or body of the message.

Passagemaking Under Power and PUP are trademarks of Water World
Productions, formerly known as Trawler World Productions.

The info below pertains to BC... you make a good point, I'm not sure if its a federal or provincial issue. CANPASS allows pre-screened people to go enter Canada easily. Even better is is NEXUS (given its supported by both US and Canada) as it facilitates clearance both ways. I've heard these passes don't work between BC and Alaska, so they're apparently BC and Washington state deals. NEXUS has to be applied for in person right on the border (at Blaine) where both Canadian and US guys collaborate with interviews, etc. John On Nov 4, 2007, at 6:40 AM, Rob Zanussi wrote: > This is news to me. As far as I know there is no tax levied on boats > in > Canada. Well, if I were to buy one new here I would pay 6% but there > is > nothing levied on used boats nor is there an annual registration > fee. I > have never heard of this CANPASS before. Is it part of the Canadian > Govt? > > Rob Z > Alberta Canada > > > At 10:15 AM 11/3/2007 -0700, you wrote: >> I'm planning to leave my boat in a marina in Canada for the period >> October - >> April of each year, for a period of 3-4 years. In each April, I >> would >> cruise north to Alaska, then return to Canada in October. I spoke >> with a >> fellow at 1-888-CANPASS about this and he was of the view that this >> conduct >> would make the boat a Canadian boat and thus subject to Canadian >> tax of 14%. >> Ouch! Can any members of this forum shed any light on this subject? > > > Do you realize that in about 40 years we will have thousands of old > ladies > running around with tattoos and pierced navels? > _______________________________________________ > http://lists.samurai.com/mailman/listinfo/passagemaking-under-power > > To unsubscribe send email to > passagemaking-under-power-request@lists.samurai.com with the word > UNSUBSCRIBE and nothing else in the subject or body of the message. > > Passagemaking Under Power and PUP are trademarks of Water World > Productions, formerly known as Trawler World Productions.
DB
David B. Pabst
Sun, Nov 4, 2007 3:58 PM

John wrote:

"NEXUS has to be applied for in person right on the border (at Blaine)
where both Canadian and US guys collaborate with interviews, etc."

True, Nexus has to be applied for in person, but there are other locations
where one can go.  We went to King County Airport (Boeing Field) in Seattle.
Nexus is broader than just West Coast.  I believe it is border-wide.

For info on Nexus applications and use:
http://www.cbsa-asfc.gc.ca/prog/nexus/menu-eng.html
Click on the links under "Join Nexus".

Kind regards,
Dave Pabst
DUESIE Selene 53

John wrote: "NEXUS has to be applied for in person right on the border (at Blaine) where both Canadian and US guys collaborate with interviews, etc." True, Nexus has to be applied for in person, but there are other locations where one can go. We went to King County Airport (Boeing Field) in Seattle. Nexus is broader than just West Coast. I believe it is border-wide. For info on Nexus applications and use: http://www.cbsa-asfc.gc.ca/prog/nexus/menu-eng.html Click on the links under "Join Nexus". Kind regards, Dave Pabst DUESIE Selene 53
JM
John Marshall
Sun, Nov 4, 2007 10:44 PM

This site is the best I've found for info on US boats in Canada...

http://boating.ncf.ca/canadaborder.html

John
On Nov 3, 2007, at 11:09 AM, Steven Dubnoff wrote:

I'm planning to leave my boat in a marina in Canada

That is a good, and very popular idea.  As I understand the rules,
you can keep the boat in B.C. without paying tax, as long as the boat
briefly leaves B.C. and returns to the U.S. within a prescribed
interval.  (The problem is that I do not remember the interval -- it
may be every ninety days.) The run from Sidney to San Juan Island is
short and I am sure you can hire a professional to do it for you if
you are elsewhere.

Sidney-area marinas are filled with very expensive boats with U.S.
hailing ports and I personally know of one Krogen owner who kept
their boat there for precisely that reason.  Sidney also has many
services designed to keep boats healthy for affluent absentee owners
and an international airport nearby.

Best,

Steve

Steve Dubnoff
1966 Willard Pilothouse
www.mvnereid.com
sdubnoff@circlesys.com


http://lists.samurai.com/mailman/listinfo/passagemaking-under-power

To unsubscribe send email to
passagemaking-under-power-request@lists.samurai.com with the word
UNSUBSCRIBE and nothing else in the subject or body of the message.

Passagemaking Under Power and PUP are trademarks of Water World
Productions, formerly known as Trawler World Productions.

This site is the best I've found for info on US boats in Canada... http://boating.ncf.ca/canadaborder.html John On Nov 3, 2007, at 11:09 AM, Steven Dubnoff wrote: >> I'm planning to leave my boat in a marina in Canada > > > That is a good, and very popular idea. As I understand the rules, > you can keep the boat in B.C. without paying tax, as long as the boat > briefly leaves B.C. and returns to the U.S. within a prescribed > interval. (The problem is that I do not remember the interval -- it > may be every ninety days.) The run from Sidney to San Juan Island is > short and I am sure you can hire a professional to do it for you if > you are elsewhere. > > Sidney-area marinas are filled with very expensive boats with U.S. > hailing ports and I personally know of one Krogen owner who kept > their boat there for precisely that reason. Sidney also has many > services designed to keep boats healthy for affluent absentee owners > and an international airport nearby. > > Best, > > Steve > > > > Steve Dubnoff > 1966 Willard Pilothouse > www.mvnereid.com > sdubnoff@circlesys.com > _______________________________________________ > http://lists.samurai.com/mailman/listinfo/passagemaking-under-power > > To unsubscribe send email to > passagemaking-under-power-request@lists.samurai.com with the word > UNSUBSCRIBE and nothing else in the subject or body of the message. > > Passagemaking Under Power and PUP are trademarks of Water World > Productions, formerly known as Trawler World Productions.