Paying Taxes On Private Aircraft Sales

[Northernboy70]

I am wondering when the taxes are paid on a private aircraft sale? With the new HST coming in Ontario, if I have a bill of sale dated before July 1st but the registration transfer goes through after July 1st, would I pay the HST?

Thanks

[mcrit]

If the a/c was bought within Canada then GST is not applicable. PST is a bit of a grey area. From experience what used to happen was that about a month or two after the a/c is registered you get a letter from the provincial government asking you to provide the value of the a/c so that they can determine the amount of tax owing. Some people have ignored these letters with no consequences (at least in Ontario).

[PAJ]

Bought an a/c in Ontario in October of 2009 - 8 months later still no tax bill/request. Wishful thinking but I'm hoping they forget.

Did a quick search and came up with this http://www.tc.gc.ca/eng/civilaviation/p ... x-1272.htm but no mention of HST.

Found this on the COPA website: Unfortunately when the HST agreements were put together in Nova Scotia, New Brunswick and Newfoundland, the provincial governments agreed to collect the full HST on these purchases. Buying a used airplane is more expensive when you live in an HST province, and as of 1 July 2010 the tax burden will jump from 8% to 13% in Ontario and from 7% to 12% in British Columbia when they adopt the HST versus, for example, 5% in Saskatchewan or zero in Alberta where HST does not apply.

Seems to be a bit of a gray area but you will be dealing with the Provincial Government and not Transport. I'd argue that the date on the Bill of Sale is the relevant date. That is the day you purchased the a/c and became the legal owner; the registration and associated date is a formality that has nothing to do with the legal change of ownership. Could be wrong here but what do you have to lose? You could gain 5%.