Many years ago, I purchased a used PY 23. I did not license it. I owned it for 5 years and never received a notice regarding tax and of course, never paid any. When I sold the boat, the new owner paid the tax on his purchase. This caused the authorities to enquire as to when I purchased the boat and how much I paid. Of course, I ended up paying the tax. Just goes to show they will catch up with you eventually.
Wayne Anstey Resilience, 1974 C&C 30 mk1 Bedford, NS, Canada Sent from my iPad > On Jun 17, 2016, at 12:15 PM, Marek Dziedzic via CnC-List > <cnc-list@cnc-list.com> wrote: > > Bill, > > This is definitely not definite knowledge (CRA is the only one, who could > provide you this). > > As far as I know, there is no difference between private sale and brokerage > in terms of if the tax is due or not. The only difference is that if you buy > through a brokerage, the tax is is withheld at the time of purchase (they > have the obligation to do that). If you buy a boat (or anything else) > privately, it is your obligation to comply. CRA may not know about the > transaction, so it may not come after you. However, the fact that they don’t > know, does not mean that the tax is not due. > > Anything that you buy and have to register with any government agency > usually, attract the attention of the tax authorities. So when you buy a car, > you have to pay the tax or they would not issue the plates. With a boat, it > is a bit different, as you usually don’t “register” the boat (in Canada). > Rather, you “licence” it. You don’t need to licence the boat if it not > powered or the motor is under 10 HP (hence, plenty of 9.9 HP motors). I think > there is some length limitation, as well, but I cannot find it. Here is a > link to Transport Canada web site: > https://www.tc.gc.ca/eng/marinesafety/debs-obs-paperwork-paperwork_boat_licence-1898.htm. > But if your boat has a bigger engine, you have to license it and this would > trigger a notice to CRA. In my case the provincial tax authorities woke up to > my buying the boat almost full three years after the transaction happened. > Interestingly, the trigger was not my importing it across the border (where I > had to show that the taxes were paid), but my licensing the boat. > > If you buy a smaller boat, you can try hiding under the radar and the > authorities may not find you. However, if they do, you will have some > explaining to do (and a fine to pay). > > Marek > Ottawa, ON > > From: Bill Connon via CnC-List > Sent: Friday, June 17, 2016 09:00 > To: C&C List > Cc: Bill Connon > Subject: Stus-List Sales tax in Canada > > We've been having a discussion at the marina over sales tax payable in > Canada. One thought is that a sale between two private owners incurs no > tax whereas a sale by a broker brings on PST and GST. Does anybody out > there have definite knowledge, especially where Quebec is involved? ( we > still operate under Napoleonic Civil law) > > Bill > Caprice 1 > > _______________________________________________ > > This list is supported by the generous donations of our members. If you like > what we do, please help us pay for our costs by donating. All Contributions > are greatly appreciated! > _______________________________________________ > > This list is supported by the generous donations of our members. If you like > what we do, please help us pay for our costs by donating. All Contributions > are greatly appreciated!
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