French Tax Shelter Program (called "Defiscalisation")

[YesIsail]

Pay for the boat, get the ownership title later. I have come across some good deals in the caribbean that due to this tax thingy have good prices.

"Normally, the yacht must stay in the program for 66 months and then it can "phase out" and the title can be passed. That's because the French investor/owners are getting accelerated depreciation deductions and to sell it before the 66 month-end negates the deductions. "

How can i make sure that the boat i pay for will not be resold again and again and again.... I dont want to meet the deadline and find out it was sold to other people while in the process of full defiscalisation.

Any experience on this?

[Palarran]

I started a thread exactly like this two years ago. I can't remember the name of the charter company that is selling them with this provision. In the end, it wasn't worth the gamble. Basically you are paying for the boat now, not getting the title, and relying that it will happen in the future.

[YesIsail]

Do you have the link for the thread?

[Palarran]

I tried to search for it. What is the name of the broker/charter company. I remember they where French and selling Bahia's at the time.

[YesIsail]

Found the thread under your user profile. Thnx

[Snore]

Perhaps it is my inner-city upbringing, but this sounds like a Ponzi scheme. If it isn't, it could easily be corrupted into one.

[YesIsail]

the boats are there in the water, the company is there for you to visit, the guy who sold you the boat will be there. any problem you just show up there and dont leave without the money, i mean its a bit risky for them not to comply with the contract, isnt it? anybody here has bought their boat in this way? any experience similar?

[Palarran]

Originally Posted by YesIsail

the boats are there in the water, the company is there for you to visit, the guy who sold you the boat will be there. any problem you just show up there and dont leave without the money, i mean its a bit risky for them not to comply with the contract, isnt it? anybody here has bought their boat in this way? any experience similar?

I'm sorry, but this is one of the naive posts I can imagine. Boats and people easily move. Companies go out of business. Contracts? You have got to be kidding me. They are broken all the time. They have no risk and all the money.

Possession is the name of the game. When I purchased my boat, I took possession by moving it to a different marina right away. Otherwise, someone may continue to think it was theirs, or their friends, or whatever.

[svBeBe]

A contract to deliver the purchase at a later date is only as good as the company guaranteeing the contract...let's see - AIG is a very big company - would you accept their guarantee?

Bill

[Lagoon4us]

I would think you would have to do this with CASH i doubt any financial institution would finance a deal like that.......

[YesIsail]

The boat will be handed in right after 50% is payed, then you have the boat for yourself. It is rented to you under contract until the date is due and then the other 50% is payed and the change of owner takes place.

It looks better than the other formula where the boat is no with you and you have to pay the total amount.

How about that, anyone done this sort of thing?

[hellosailor]

You are best off speaking to lawyers in the country where the process would take place. Without the title you might be able to put a lien or other secrity interest on the boat. There would still need to be some protections, such as a contract requiring full insurnace with you as a named insured, to make sure you get paid if it is damaged or lost. And some protection if possible assuring that asset goes to you in the case of a bankruptcy.

Basically you are becoming the financier instead of the buyer, and if you are not comfortable having the legal protections drawn up by lawyers--don't do it.

[Jeannius]

This defiscalisation scheme has been around for ever. Tax scheme set up by French government to promote French boat sales to charter companies. Perfectly legitimate and generally just an additional sweetener to a Moorings/Sunsail style 'ownership' scheme.

[goboatingnow]

This "scheme" has been around as long as the French incentive scheme ( which is a lease at lower VAT). To get out early the can't be done, so what incentivised owners do is "sell" i.e., you pay a big portion and the papers follow at the end of the lease period

It reminds be of the sketch where the dentist is grasped by the goolies while he's about to extract " The we won't hurt each other" fiscal compact , to use a phrase in vogue.

dave

[YesIsail]

Originally Posted by goboatingnow

This "scheme" has been around as long as the French incentive scheme ( which is a lease at lower VAT). To get out early the can't be done, so what incentivised owners do is "sell" i.e., you pay a big portion and the papers follow at the end of the lease period

It reminds be of the sketch where the dentist is grasped by the goolies while he's about to extract " The we won't hurt each other" fiscal compact , to use a phrase in vogue.

dave

What do you mean "we wont hurt each other" what can the buyer do in case the other part resells the boat or goes bankrupt while in that period.