Reward for lost Kraken!
Join Date: Apr 2006
Thanked 142 Times in 139 Posts
Rep Power: 11
Re: Canadian resident registering boat in US. Duty question
"You ask three CCBA officials and you'l get at least 4 answers."
We have the same problem with agencies in the US. The answer is that you ask in writing, with a letter, and because the agency can still say "well that was only an opinion" you ask for a formal "advisory opinion" or other statement that will be upheld by the entire department.
Taxing is all about venue and jurisdiction. If the tax laws say "any resident" or "any citizen" and any presence within the boundaries...Yes, crossing into home water for ten minutes while in transit could still trigger tax jurisdiction.
If it does, and the formal written statement says it does, and your elected politicians can't get you a more powerful letter saying otherwise...then you either PAY because that's the law, or find another way around it.
Sell the boat to an American for $100. You'll pay some title or registration fee or maybe just a temporary tag fee. Now sail up to Alaska with them and buy it back. Voila, no Canadian tax jurisdiction. Or sail it up the outside. If you can't get a written qualification and don't want to pay the tax, get creative and get the boat outside the tax jurisdiction.
Or just sail up in a hurry on a moonless night, making sure your powder is dry and you shoot first. Stranger things have been known to happen.