International Taxes

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Canadian Agency Sympathetic to NBAA’s Opposition to User Fee Tax
February 2, 2009
At a meeting on January 29, representatives from the Canada Revenue Agency defended their position that a 5 percent goods and services tax (GST) is applicable on user fee charges for Part 91 operators using NavCanada’s air navigation services. However, CRA officials were sympathetic to NBAA’s arguments and viewpoint, and encouraged NBAA to take the matter up with Canada’s Department of Finance to seek a change to tax policy. NBAA will continue its coordination efforts with the Canadian Business Aviation Association and NavCanada on this matter. For more information, contact NBAA’s Operations Service Group at info@nbaa.org.

NBAA Opposes Canadian Agency's User Fee Tax
January 26, 2009
The Canada Revenue Agency (CRA) has agreed to meet with NBAA, the Canadian Business Aviation Association (CBAA) and NavCanada staff this week to discuss industry concerns with the CRA's interpretation that user fees paid to NavCanada are taxable for Part 91 operations. NBAA disagrees with the CRA's assertion that air navigation services are provided to the pilot of the aircraft who is flying for the business of the company. NBAA will inform the CRA about business aviation operations and will argue that these operations should not be subject to the goods and services tax. The meeting will take place this Thursday, January 29, in Ottawa, ON. For more information, contact info@nbaa.org.

NavCanada Warns of Fraudulent Billing Scheme
November 24, 2008
NavCanada has issued a notification that its customers are being targeted by a fraudulent e-mail billing scheme. The notification warns that operators who receive an e-mail regarding outstanding debt to NavCanada should disregard it. NavCanada does not send customers billing notices via e-mail unless customers have specifically requested PDF delivery. NavCanada bills are otherwise always sent by traditional mail. NavCanada has contacted the authorities and is investigating the fraud. View a sample of a typical fraudulent message.
Business Aircraft Operations in Canada: Avoiding Cabotage
January 23, 2006
As more companies engage in international operations, especially with our neighbors to the north, questions arise with regard to business aircraft operating between the U.S. and Canada and operations within Canada. Operators must ensure they avoid engaging in cabotage, which generally is the carriage of goods or passengers for remuneration within the same country. In Canada, cabotage comes under the authority of the Canada Customs and Revenue Agency (CCRA), as well as the Canadian aviation economic authority, the Canadian Transportation Agency (CTA). Learn some specifics about business aircraft operations in Canada by reading the article, "Canadian Cabotage – FAR Part 91 Operations."
United Kingdom Withdraws Value Added Tax (VAT) Decision on Refund Claims
December 24, 2005
Companies operating flights to the United Kingdom commonly reclaim the VAT paid on crew hotel and related travel expenses. In most cases, the employee's name and address appears on the travel receipts, not the name of the company (which generally is the entity requesting the refund). Earlier this year, the United Kingdom determined that in order for a refund request to be valid, the receipt must match the name of the entity requesting the refund. After hearing numerous concerns that this decision would cause inequities between the UK and overseas businesses, the UK Revenue and Customs has reversed this decision which was due to take effect on January 1, 2006. However, in order to minimize delays in refund processing, companies are encouraged, whenever possible, to ensure the receipt information matches the name and address of the entity requesting the refund. Review the UK HM Revenue & Customs Information Bulletin 2/2005 (55KB, PDF).

Foreign Taxation and Operations Resources