Personal Finance

HST question - technical

  • Last Updated:
  • Jan 7th, 2019 3:07 pm
[OP]
Deal Addict
Feb 22, 2007
1770 posts
108 upvotes
Mississauga

HST question - technical

Not looking for 100% professional advice, but looking for some guidance or thoughts to help me decipher this issue.

Lease of a helicoptor

Lessee/Lessor are both Canadian and registered
Lessor will have legal title of the asset
asset will be manufactured in the USA 100%, then lessee will fly it to the Caribbean and hanger it there. It will be for corporate use.

I understand the basic rules of zero rated as this asset is not delivered or made available in Canada (place of supply rules 142)

What's throwing me off is that the aircraft will be registered in Canada. My gut is telling me this has something to do with GST/HST issue.

Lessee will be maintaining the asset with his own mechanics - not sure if this places a role in anything.

I know GST/HST is usually the utlimate location of the goods and I know for vehicles....you could buy a vehicle in Ontario, but have it registered with New Brunswick plates (tractor) and we would charge 15% instead of 13% because it follows registration....not sure if aircraft is the same sort of thing.
2 replies
Deal Addict
Jan 30, 2012
1427 posts
686 upvotes
TORONTO
You realize this forum is called "Personal Finance" not "How to evade paying taxes on aircraft by using Caribbean tax havens", right?

IBTL
Sr. Member
Nov 12, 2014
590 posts
366 upvotes
Kingston, ON
Call HST rulings - 1-800-959-8287 and ask them.

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