TAX ON BOATS

[FishOn]

Hi all. I got my Ministry of Finance Ontario letter today. Asking me to provide a copy of the bill of sale showing purchase price and remit a cheque or money order. Calculating tax on the full purchase price (tax rate of 13%).

 

I have no problem paying my tax. The boat package was $13,000 including Boat, Motor and Trailer. I paid my tax on the trailer that was valued at $1,000 at the time of transferring the ownership at the MTO.

 

My question is;

 

Do I have to pay tax on the motor, or just the boat? They are asking me whats the purchase price of the Boat/Watercraft.

 

We all know most boats are worth a lot more less than the outboards these days. Should I split the value and show only what the boat is worth and not include the motor here?

 

 

 

Thanks.

 

[cheaptackle]

Simply put - Yup boat only.

 

Michael

Edited December 18, 2013 by cheaptackle

[lookinforwalleye]

You buy your boats in the States...I understand you should be paying tax at the time of import.

But I am no expert.

[irishfield]

I can't believe it's your first letter!.. and as lookin said, aren't they getting you at the border when you bring it in or are you stealthing by the customs window?

[lookinforwalleye]

Prolly looking for the delete thread button as we speak!!!

[captpierre]

I'm thinking boat/motor combo

 

Think what jetskis, inboards, inboard/outboards would have to do

[irishfield]

What ever bill you have... you are stuck with that. If you didn't get separate invoices for boat, motor and trailer you are outta luck with the Minister of Finance and they will want taxes on what ever you can "prove" that you paid. I advised before to do this boat stuff with an Ontario Corp number and you'd be exempt from taxes (on a pay/claim/refund bases) as a "dealer"...

[Bill Shearer]

One thing I have learned in crossing the 'line' over many years.

"Answer their questions" and nothing more, since it only gives them an edge to ask another question.

They want to know what the value of the boat is. If your receipt clearly shows what that value is, then submit it.

If it doesn't, then get one that does.

[lookinforwalleye]

What ever bill you have... you are stuck with that. If you didn't get separate invoices for boat, motor and trailer you are outta luck with the Minister of Finance and they will want taxes on what ever you can "prove" that you paid. I advised before to do this boat stuff with an Ontario Corp number and you'd be exempt from taxes (on a pay/claim/refund bases) as a "dealer"...

and then claim expenses and pay taxes on the profits seems fair!!!

[irishfield]

If your receipt clearly shows what that value is, then submit it.

 

If it doesn't, then get one that does.

 

Exactly... but make sure the guy on the other end, that you bought if from, is in the loop as they make calls, and they really love when they get the wife and she tells the real sale value. I can show you the fines and bills for one of those!

[FishOn]

It's a local boat, not from the USA. I am going to separate the package fairly and submit it that way. Will see.

[irishfield]

"separate the package fairly".. only the seller can legally do that for you. Get new bills from him, or get him on board to what you write before you submit. Also remember barter and trade is still legal in Ontario..

[FishOn]

As for the boats coming from the US, they simply collect the tax (13%) at the boarder. No way around that. Never lie on your purchase price if you do bring one in. Always, tell the truth because fines are huge. They will investigate if they feel that you have lied to them.

[FishOn]

Fast Typist, thanks for all your info.

[irishfield]

I once "traded 3 aluminum boats even for an airplane".. but I digress... they didn't call me back.

Edited December 18, 2013 by irishfield

[FishOn]

I just went through my paper work and low and behold the package was separated at the time of purchase. Thank you Santa. LOL

[nancur373]

I once "traded 3 aluminum boats even for an airplane".. but I digress... they didn't call me back.

Is there an equal value clause or can you straight up trade anything for anything?

[irishfield]

That was what I wrote on their request for PST payment on an airplane I registered, complete with the guys name and phone number that I traded the three boats with 9.9's on them.... they never called me back or sent a follow up request. As I mentioned earlier you have to have all your ducks in a row. They didn't call him either..

 

Not any different than trading in a vehicle at the car dealer. You pay tax on the difference, but only if it's a single transaction. Why can't you trade even dollar value for even dollar value...

Edited December 19, 2013 by irishfield

[nancur373]

I must say Wayne...you are a wealth of knowledge. Thank you.

[leaf4]

Definitely going to be referring back to this thread when looking at a private sale of a boat LOL

[wormdunker]

I just received the same letter wanting me to provide proof that I paid the tax on my boat purchase which I bought 1 year ago. I in fact did pay the tax - now they want documentation. Obviously Service Ontario & the ministry of finance don't communicate.

[lew]

I bought a new boat back in '99 and payed cash in full including taxes. Over the next 4 years I received 3 letters asking for a copy of the bill of sale to prove I payed the tax. First 2 letters I complied with but when I received the 3rd letter I just ignored it and never heard from them again.

[Fish Farmer]

Pay the the tax on everything, if you don't, better not get caught. Don't forget to change the name on the vessel license. The ministries are linked together now.

The MAN will get you sooner or later.

[ch312]

Pay the the tax on everything, if you don't, better not get caught. Don't forget to change the name on the vessel license. The ministries are linked together now.

The MAN will get you sooner or later.

 

What happens if you register the trailer in your name, but forget to transfer the boat ownership into your name?

[lookinforwalleye]

Lots of people "forget" to register their boats having said that there is no boat registration just the boat license and that is how they track ownership and who has paid the HST and who 'forgot" .

Didn't really answer your question I am sure somebody will give you the correct answer.