Boat Registration In Cook Islands

[josh]

Hi,
I've got a question about boat registration that I'm not sure if its been addressed on here before.

I will be heading to Florida to purchase a yacht (around 38' and 100k) to start slowly bringing back to Australia, or possibly New Zealand, over the course of the next few years. I will be doing a trip then coming back to work for a bit and then going again etc.

I have been recommended to look into registration in the cook islands to avoid paying Australian tax on it when i purchase, I do realise that i will have to pay tax eventually if i decide to come back to Australia or New Zealand or wherever i end up but just wondering if anyone else had experience with this and could share their views.

From reading on the cook islands registration website it seems a fairly easy precess and the fees don't seem to be too bad. Just trying to get more insight into it and the pros and cons.
thanks.
josh

[boatman61]

Hmmmmmmm


Registration of a vessel upon the Cook Islands Ships Registry is governed by the Ship Registration Act 2007; vessel ownership requirements state that a ship is or will be owned (in the majority of shares) by - or on a demise charter to - a "qualified person."

This is defined as a person who is resident in the Cook Islands; or an entity which:

1. is incorporated in the Cook Islands; or
2. an existing international company registered in the Cook Islands;

(Both such corporate entities are exempt from taxation in Cook Islands)

Ships are most commonly owned by an International Company or Cook Islands-registered Foreign Entity. The shareholders of which can be individuals or corporations.

Please see additional pages for further information on the Cook Islands' offshore jurisdiction and the requirements for incorporation/registration.

Please contact Maritime Cook Islands for information on a suitable trustee company to undertake the required services.

[Travelnik]

Why are so many people trying to avoid paying legitimate taxes?

If you can't afford the tax, maybe you should look at getting a boat that you can afford!

Maintenance and upkeep will be a lot more than taxes!

[josh]

Thanks boatman,
I had thought that you didn't have to set up a registered company or entity there, i will look into that documentation some more and see what i missed.

Not trying to dodge any tax but think I pay enough legitimate tax as far as I'm concerned, all about finding out the smartest way to do things and exploring different options.

[josh]

I have looked into the cook islands site and from what i have read it appears that if you register with the cook islands yacht squadron there i s no requirement for you to have a company or entity based there. i have e mailed them to find out some more info.
but if anyone has hands on experience with this it would be great to hear about it.
thanks.

[downunder]

Not sure of any advantage whatsoever with Cook Is reg.

As an Australian citizen you will be required to pay the relevant taxes when you enter Australia with the vessel at some time in the future but only at that future time.

What do you gain???????????????.

[mausgras]

Originally Posted by dsmastern

Why are so many people trying to avoid paying legitimate taxes?

If you can't afford the tax, maybe you should look at getting a boat that you can afford!

Maintenance and upkeep will be a lot more than taxes!

Without paying taxes how can you expect govt services, in our case everything from weather services, mapping, maritime management, search and rescue etc etc. I bet if you don't pay taxes you will still want to use all those services.

Or maybe you just want me to pay for them.

[josh]

I do realise that i will have to pay the tax once i bring it into Australia, should i decide to do so, the benefit i see is that it gives me more time with my money to invest and benefit from, nothing gained from paying tax till you have to. Believe me i pay my share, but its about being smart with your money. That's what i think anyways.

its something that has been suggested to me and would like to find out some more from anyone who's had some experience with this.

[BriaF]

ever year older = less value
= less to tax

[Zonker]

Hm ... pay tax for income, pay tax for wealth, pay tax for boat import ... comon guys - only dumb ppl pay taxes ! Same $ gets taxed to often !

Btw if you register your boat in an "offshore" country owned by a company then you don't need to pay tax in Australia. On the other side you have to pay company maintenance fee.

[svseachange]

I am also looking at bringing a boat from the US to Australia. According to my research on the matter there you will not pay taxes on the boat until you bring it into Australian waters. In other words you can register the boat as Australian but not pay GST and any other applicable import duties until you actually import the boat.

Seems fair to me. I am sure someone on this forum has been there and done that and give you an authoritative answer on the matter.

[jacob30]

Not all of us feel that these taxes are legitimate or that the money pays for things we want or value. Just take a look at the numerous things our tax dollars here in the US pay for. I just heard the government funded a study of the memory of seniors who played the video game "World of Warcraft" to the tune of millions .

If the tax dollars spent on boats went towards SAR, navigation, safety etc. I would have no problem paying a legitimate tax. Here in the US go to Boat US website and you can find out which states are not actually stealing your tax dollars to pay for non-marine related items.

http://www.boatus.com/gov/states/default.asp

And yes I paid my Virginia 2% sales tax not to exceed $2000 and most of it goes back into the waterways.

Originally Posted by dsmastern

Why are so many people trying to avoid paying legitimate taxes?

If you can't afford the tax, maybe you should look at getting a boat that you can afford!

Maintenance and upkeep will be a lot more than taxes!

[David_Old_Jersey]

If going Oz regsitration does not in itself generate a Tax bill (until the boat later arrives) then that is the route I would choose - one less thing to do later.

Dunno about the Cook Islands reg (as a non-resident I think you get lumbered with the annual cost for a Cook Islands Company )......but as you are a Citizen of a British Commonwealth Nation you can get personal boat reg in Jersey (without having to be a Jersey Resident nor requiring a company).....just need a local "Representative Person" (acts as no more than a post box).......main downside is the cost of a Tonnage Survey, otherwise fees are pretty competitive.

[mausgras]

death and taxes ... death and taxes .... death and taxes .... can't avoid them.

Except some countries in SEAsia. Taxes are negotiable, depending on your connections

[mausgras]

Originally Posted by jacob30

Not all of us feel that these taxes are legitimate or that the money pays for things we want or value. Just take a look at the numerous things our tax dollars here in the US pay for. I just heard the government funded a study of the memory of seniors who played the video game "World of Warcraft" to the tune of millions .

It is always easy to find an unsubstantiated story about what "they" heard or said. Even if they were true the abuse or mismanagement is an infintisemally small percentage of the overall tax take.

I live in a country that has a very weak tax base. The roads are in a shocking state, there is no free or decent health care and decent education is reserved for the wealthy few who can pay for it.

At the same time there is a ruling elite that live in enormous and ostentatious wealth (no I am not talking about the USA) that pay little or no tax. Most of the countries income comes from foreign aid or selling assets to the Chinese.

The fact is that taxes are essential for redistributing wealth so that the fortune of a few are enjoyed by everyone.

Redistributing wealth through taxation is GOOD, it spreads the economic benefits for everyone and increases political stability.