Canadian buying a boat in US to travel the world. (tax question)

[Vasco]

Originally Posted by Restlessone

Don't forget that if you leave Canada for 183 days you will no longer have access to health coverage.

I was the picture of health until 60 and since than I have had three cancer and one heart operation. Something to think about.

This varies from province to province. In Ontario it's 212 days.
Longer Absences from Ontario - When can OHIP cover you? - Ontario Health Insurance (OHIP) - Publications - Public Information - MOHLTC

[Red Herring]

Don't forget, it will be HST and duty depending on the origin of the vessel. Find some place cheap in the States to keep it while you prepare, then leave from there. I would not bother trying to bring it into Canada if you are looking to avoid paying tax on it.

[Stu Jackson]

It is truly tiresome to read "tax avoidance" questions like this, because the OP didn't do a finger-lickin' ounce of research and homework on his own.

I am contemplating moving my boat from SF Bay to British Columbia. My wife is a Canadian citizen, I'm not, and we've moved here to support her 95 year old father. Think that could get tricky?

But I haven't asked the question: "Whadda I do?!?" because it is my own personal responsibility to find the F out myself.

[Boatlegs]

You say your are giving up your "residence" but you are still a Canadian citizen? You will be considered a resident of Canada for tax purposes if you don't established residence in another country. A boat that is in travel status isn't an established residence in another country; rather it is equivalent to those who spend winters in another country but they don't have permanent residency or citizenship another country.

[robert sailor]

You can buy the boat outside of Canada, say the usa. The boat can be registered as a Canadian boat but you pay nothing until you import the boat into canada. You can apply for a work bond and after receiving it you are allowed to bring the boat into canada for 3 months. I have done this on a couple of boats in the past.

[boatpoker]

I deal with these questions as a routine part of my business and know the answers as I have been involved in many cases.

I have tried to provide answers on this forum before but have been roundly dumped on by people who read a few pages on a government website without realizing that those few pages mean absolutely nothing if you don't read the other 500 pages that go along with it.

Vasco has it mostly but not completely right, some of the other postings are wildly misinformed. See a lawyer, this is way more complicated than this forum can handle.

[astokel]

As I often say on these threads; any free advice is worth what you pay for it. If you want Canadian tax advice talk to a Canadian tax lawyer. Many posters profess to be one, but why would they give free advice when they should be charging $160 an hour?

Also I hate to poo-poo your dream but think ahead when your older. Giving up residence, Canada Pension Plan, Old Age Security and great free Canadian health care (with drug benefits) may not be a wise move in the long term. That's why we pay our taxes in Canada.

[boatpoker]

Originally Posted by astokel

As I often say on these threads; any free advice is worth what you pay for it. If you want Canadian tax advice talk to a Canadian tax lawyer. Many posters profess to be one, but why would they give free advice when they should be charging $160 an hour?

Also I hate to poo-poo your dream but think ahead when your older. Giving up residence, Canada Pension Plan, Old Age Security and great free Canadian health care (with drug benefits) may not be a wise move in the long term. That's why we pay our taxes in Canada.

Having recently spent $250k over four years to keep my wife alive (she didn't make it) I can tell you there is not much free about our health care system for many. There is an entire network of people in Ontario going broke trying to keep family members alive. You will meet them in the support groups if you are ever unfortunate enough to fall into that position.

[Scaramanga F25]

Are you a Canadian?

Do you only have only a Canadian passport or a second one from???

[catman]

i recall that for income tax purposes and to be considered non-resident I had to leave Canada for two years, not have a residence to return to.
you can buy a boat anywhere and register it in Canada and keep, it out of Canada but when you return on a Canpas permit and you are still considered a resident you have to pay duty,
if applicable, gst and hst.
in the US i believe they only have to be out of the country for 11 mos to be considered non- resident, fot tax purposes.
on the other hand a friend of mine who is a brit brought his catamaran into Canada on a Canpas as part of his boat building company asset. He was supposed to renew the Canpas after 6 months, he never renewed it, he has come and gone over the years and his boat is still here and no import duty or sales taxes have ever been paid, now eleven years later.
the government does not have the manpower to follow up on things like that
iwould really make sure of your non-resident status before bringing your boat back to Canada.
There is no duty owed if the boat is built in the US.
catman

[Seymore]

Originally Posted by DavidLGCrawford

Nowhere does it say you must be a resident of another country to be a non-resident in Canada.

So I am a non-resident in that in the settled routine of my life, I make my home, reside, and am ordinarily present in the Caribbean Sea, and countries therein. I do not maintain an address in Canada. I have any mail sent to one of my kids who forwards it via email.

Well, yes. If you're a resident in your Canadian registered boat, which is a sovereign part of Canada, albeit ordinarily present in the Caribbean, aren't you residing in Canada?

[helise]

Originally Posted by epiic

I am planning to give-up my permanent residency in Canada.

I am buying a boat in the USA and I would like to register the boat in a country that does not charge tax.

What would be the best country to register the boat in?

Also, I am not planning to live in Canada anymore but it would be nice to visit Canada without having to pay taxes on the boat when I arrive.

Any help is greatly appreciated.

Hello Epiic,

I am a Canadian and my husband is an American. We have various type of yachts registered with Langkawi International Yacht Registry (LIYR), Malaysia.

Two (2) of the yachts are for private (individual) used and others are for charter. Some based in BVI, Bahamas, Istanbul, Phuket and Langkawi.

We have no problem at all visiting Canada with our Langkawi registered yacht and we have done it many times before.

Langkawi is a duty free Island and LIYR is a duty free registry. No import tax, no GST and/or VAT. The only you have to pay are the Registration Fee, Annual Tonnage Dues, Ship Station Radio License (MMSI NO), and Agent fees approximately USD1,800.00 in total.

Please contact Mr.Keith Kowal at keith.kowal@gmail.com. He's a Canadian too and have a yacht registered with Langkawi International Yacht Registry (LIYR), Malaysia for your reference.

If you needs further details about LIYR, please contact Ms.Layla Avila Shariff at Info.marine@rocketmail.com, www.facebook.com/MalaysianMarine and/or Yachingpages.com.

Good luck and cheers....

Elise Harper.

[catman]

in BC you can leave for two years as a one time thing and still be covered by BC medical.
you must let them know if you do intend to leave for an extended period of time.
catman

[Hobie_ind]

Originally Posted by helise

Hello Epiic,

I am a Canadian and my husband is an American. We have various type of yachts registered with Langkawi International Yacht Registry (LIYR), Malaysia.

We have no problem at all visiting Canada with our Langkawi registered yacht and we have done it many times before.

.

I suspect there's been no issues because your husband is American. That's very different than my research into the issue when we were looking at doing the same and both of us are Canadians. A Canadian even bringing in a US rental car temporarily can have issues.

As previous posters have advised, go see a tax lawyer or accountant who specializes in non-residency issues. It's a very specialized area and lots of the 'clarifications' in the tax regs are ultimately based on case law. From memory of talking to my accountant on this, that is where you'll find they've clarified that if you don't have a fixed residency elsewhere is where they can claim you didn't meet the requirements to declare 'non-residency'. Someone fought them in the issue and lost. We were non-residents during the 90's and there were lots of things to consider before doing it and even more ways to 'screw it up', particularly if there was a chance you might re-establish residency at a later date for some reason (ie. health considerations).

There are mechanisms to bring a boat in and not pay GST as a resident, (Ontario HST might be a separate matter, I didn't research it) by 'bonding' the boat, but there are hoops to jump through prior (work lists, Canadian yard quotes, justification why you 'need' to bring it in vs having it done else's where....yes really, etc), and even then it's ultimately up to the Customs person who reviews it if they'll approve it.

Well behind the scope of getting good reliable advice on a forum from strangers IMHO.

[helise]

Originally Posted by Hobie_ind

I suspect there's been no issues because your husband is American. That's very different than my research into the issue when we were looking at doing the same and both of us are Canadians. A Canadian even bringing in a US rental car temporarily can have issues.

As previous posters have advised, go see a tax lawyer or accountant who specializes in non-residency issues. It's a very specialized area and lots of the 'clarifications' in the tax regs are ultimately based on case law. From memory of talking to my accountant on this, that is where you'll find they've clarified that if you don't have a fixed residency elsewhere is where they can claim you didn't meet the requirements to declare 'non-residency'. Someone fought them in the issue and lost. We were non-residents during the 90's and there were lots of things to consider before doing it and even more ways to 'screw it up', particularly if there was a chance you might re-establish residency at a later date for some reason (ie. health considerations).

There are mechanisms to bring a boat in and not pay GST as a resident, (Ontario HST might be a separate matter, I didn't research it) by 'bonding' the boat, but there are hoops to jump through prior (work lists, Canadian yard quotes, justification why you 'need' to bring it in vs having it done else's where....yes really, etc), and even then it's ultimately up to the Customs person who reviews it if they'll approve it.

Well behind the scope of getting good reliable advice on a forum from strangers IMHO.

Dear hobie_ind,

Please understand carefully the title of the subject "Canadian buying a boat in US to travel the world. (tax question)".

He is buying a boat in US to travel the world and he is looking for a country to flag his boat without paying any taxes. That was his priority and subject above.

Your researched was outdated and I am very sure that you do not intent to live in the car unless you are inhuman. Bringing a rental car and bringing a foreign registered boat into Canada are two different issues.

If you can not understand the subject to be discuss and the laws pertaining car and boat, please keep quite and DO NOT confusing others.

My boat registered under my name, a Canadian and we have been traveled to Nanaimo, BC and Quebec City, New Brunswick for weeks without problem.

For further details, you can also contact Mr.Keith Kowal. He is a Canadian and own a Langkawi registered yacht for years without paying any taxes and problem. This is practical and NOT theory as your outdated research lol.....

Best Regards,

Elise.