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Old 09-02-2012, 16:51   #1
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Dreaming Canadian Future Owner

Hi Folks,

Being the dreamer that I am, I sure hope to retire on a 44i. Preferably a new one.

I do have a question on tax issues. Being from Canada, will I be subjected to pay tax if I ever enter Canada with an Antares? Not sure since it appears that they have offices here.

If not, what sales tax would I be subjected to?

Any Canadian owners out there who can answer this?

Any info would be appreciated,

Guy
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Old 09-02-2012, 17:01   #2
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Re: Dreaming Canadian Future Owner

Greetings and welcome aboard the CF, Guy.
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Old 09-02-2012, 17:06   #3
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Re: Dreaming Canadian Future Owner

Thanks Gord!!

I see you are from the beautiful northern Ontario. We are from Windsor area, the armpit of Ontario.

Guy
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Old 12-02-2012, 14:34   #4
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Re: Dreaming Canadian Future Owner

If your boat never enters Canada, you don't need to pay the taxes.
If youf boat enters Canada, the taxes (HST) become payable after 6 months of being here.

The above, of course, assumes that you register your boat in Canada. If you register your boat in another country, then you need only be concerned with paying that country's boat taxes.

Welcome to the forum!
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Old 12-02-2012, 14:44   #5
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Re: Dreaming Canadian Future Owner

Almost forgot: if the boat is not made in Canada, US, or Mexico [not in NAFTA country], you may need to pay 5-9.5% duty [once again, assuming that you register your boat in Canada].

A nice website (though I can navigate through it using only the search tool...] for information on Canada boats is Pat's BOATING IN CANADA.
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Old 12-02-2012, 14:48   #6
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Re: Dreaming Canadian Future Owner

Quote:
Originally Posted by Katiusha View Post
If your boat never enters Canada, you don't need to pay the taxes.
If youf boat enters Canada, the taxes (HST) become payable after 6 months of being here.

The above, of course, assumes that you register your boat in Canada. If you register your boat in another country, then you need only be concerned with paying that country's boat taxes.

Welcome to the forum!
Thanks for your reply. I live on Lake Erie and was hoping to spend 2 or 3 months every summer coming home and sailing the Great Lakes. I guess the Canadian HST pretty much takes that option off of the table.

Can you explain the option of registering the boat in a different country? Does this not cause issues when travelling with a Canadian passport? Would you still fly a Canadian flag? Sorry about all of the questions but I really have no idea on how this works.

Guy
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Old 12-02-2012, 14:52   #7
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Re: Dreaming Canadian Future Owner

Quote:
Originally Posted by Katiusha View Post
Almost forgot: if the boat is not made in Canada, US, or Mexico [not in NAFTA country], you may need to pay 5-9.5% duty [once again, assuming that you register your boat in Canada].

A nice website (though I can navigate through it using only the search tool...] for information on Canada boats is Pat's BOATING IN CANADA.
Not good news. Boat is made in South America.

I had a look at Pat's site earlier but didn't see anythin worthwile. Will try using the search feature.

Thanks again,

Guy
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Old 13-02-2012, 01:23   #8
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Re: Dreaming Canadian Future Owner

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Thanks for your reply. I live on Lake Erie and was hoping to spend 2 or 3 months every summer coming home and sailing the Great Lakes. I guess the Canadian HST pretty much takes that option off of the table.
We met a lot of sailors from Quebec who live in the province, but keep their boats on lake Champlain in New York. They just drive down and sail there.

Quote:
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Can you explain the option of registering the boat in a different country? Does this not cause issues when travelling with a Canadian passport? Would you still fly a Canadian flag? Sorry about all of the questions but I really have no idea on how this works.

Guy
It would be a "flag of convenience". The boat would be registered in a place that does not levy boat taxes or duty.

If a boat is not registered in Canada, the stay of the boat is limited to, if I remember correctly, 6 months [or longer if undergoing repairs in an approved facility]. You can always call Transport Canada to find out the maximum tax- and duty-free stay for a foreign pleasure boat.

As long as the boat's papers are in order, including insurance and a paper showing that you're the captain, there should be no problems at the border.

More detail on a country of convenience registration: for a British ensign (e.g. Caymans, BVI, Bermuda, Isle of Man, etc.) you would have to setup a company . The boat would be registered to this company. The boat would fly the flag of the country (and have the home port) of company registration. Then the co. authorises you to be the captain of your boat. (N.B. If you have a British (or Commonwealth) or European passport, you can skip the company formation and register personally).

Similar for Delaware, Seychelles, or Panama registration.

In other jurisdictions, such as Sierra Leone, or Marshall Island the requirements are diffirent and in all cases it would be best for you to refer to the registration body of the actual jurisdiction for info.

Expenses:
One time: company setup (including some lawer fees) - varies A LOT from country to country. In the BVIs expect about $2500.
Yearly:
Company maintenance fees around $500-$1000.

Most popular countries of registration for pleasure yachts that we've seen (not statistical and in no particular order):
* Bermuda
* Cayman Islands
* BVI
* Sheyshelles
* Panama
* Marshall Island
* Gibraltar
* Delaware, US
* Luxemburg - must be over 63'
* Guernsey or Jersey (for bigger yachts)
* Malta - beware, they have a weird ownership scheme to avoid the taxes

If you do decide to register in one of british territories, your boat would be entitled to British protection, including help of British navy, embassies, etc.

There is really to much info to convey but if you decide to go this route a Google search 'yacht registration XXX' is a good place to continue.

P.S. Just a note of experience: we're flying a Canadian flag. We found that in a new place people behave friendlier towards us and boats with British ensign than other flags. But maybe it was our ego Canadian flag is fairly rare... in the middle of cruising season: "did you hear? there was another Canadian boat here two weeks ago!"
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Old 13-02-2012, 03:22   #9
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Re: Dreaming Canadian Future Owner

Katiusha,

Thank you very much!! That is exactly the kind of info I was looking for.

Guy
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Old 14-02-2012, 14:06   #10
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Re: Dreaming Canadian Future Owner

Well I bought my boat a year and a half ago. Should have left the registration in PO name. I got a bill from Revenue Canada for the sales taxes. Haven't paid it yet. The strange thing is they want me to provide a bill of sale and the tax. Well the bill of sale sure won't be what I paid.
In about 10 years I plan on moving to a 45 footer and start the travelling retirement lifesyle. I have the same concerns about the tax. I think I may take a page from Paul Martin with Canada Steamship and register it in the caymans. After all he was the finance minister and who else to know how to screw the taxman. This country is great at squashing dreams with the redicules taxes.
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Old 14-02-2012, 14:28   #11
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Re: Dreaming Canadian Future Owner

Quote:
Originally Posted by guyver View Post
Thanks Gord!!
I see you are from the beautiful northern Ontario.
We are from Windsor area, the armpit of Ontario.
Guy
Otherwise known as the anus of Canada.
Of course, we do have (for a few weeks a year) one of the world's finest cruising grounds; the North Shore of Lake Superior.
Do you sail Lake St Claire, Erie, or Huron?
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Old 14-02-2012, 15:18   #12
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Re: Dreaming Canadian Future Owner

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Otherwise known as the anus of Canada.
Of course, we do have (for a few weeks a year) one of the world's finest cruising grounds; the North Shore of Lake Superior.
Do you sail Lake St Claire, Erie, or Huron?

I live on the shore of Lake Erie in a small town (Kingsville). Lots of powerboating and fishing experience in both Lake Erie & St. Claire. Only been on Huron a couple times many moons ago.

I have never been on a sailboat but have really fallen for them and the lifestyle. My wife and I have been going on cruises yearly to the Caribbean and see them everywhere we go. Total envy for all you guys.

Being about 2 years from retirement, I now have a renewed purpose. I would love to have an Antares but barring a lottery win, I doubt I can come up with the million to buy one. Used ones are not a whole lot cheaper.


More likely looking at a good used cat in the 36 - 40' range.

Guy
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Old 05-11-2012, 07:44   #13
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The way I understand if your boat is registered in another country, as soon as you take it across the boarder into Canada, you have to pay duties on it. The way we do it in Quebec is to leave the boat on Lake Champlain for the summer, then, when time come to take it out of the water we get a work order for repairs on the boat by an aprooved marina, then you present this to the boarder and your boat becomes "inbound", it has to be out on Canadian water by June first or the taxes become due....

Best solution is to find a Canadian registered boat with a private owner, that way you are not taxed when transfering a "used" boat.

I'm also on the market for a 40' cat and got all this info yesterday in the navigation class I'm taking so I have not verified this info but it all makes sence...
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Old 21-11-2012, 13:56   #14
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Re: Dreaming Canadian Future Owner

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Originally Posted by Lajos View Post
The way I understand if your boat is registered in another country, as soon as you take it across the boarder into Canada, you have to pay duties on it. The way we do it in Quebec is to leave the boat on Lake Champlain for the summer, then, when time come to take it out of the water we get a work order for repairs on the boat by an aprooved marina, then you present this to the boarder and your boat becomes "inbound", it has to be out on Canadian water by June first or the taxes become due....

Best solution is to find a Canadian registered boat with a private owner, that way you are not taxed when transfering a "used" boat.

I'm also on the market for a 40' cat and got all this info yesterday in the navigation class I'm taking so I have not verified this info but it all makes sence...

Thanks for the info Lajos!!
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