Looking to dodge Cdn taxes? look to DFO for advice

What's good for the goose...

In response to my recent blog post on a decision, denying a Canada Coasting Act waiver by the Canada Transportation Agency (CTA) - which is very unusual - Halifax Shipping News tweeted about another story, where the Canadian federal government seems to be stabbing the Canadian marine industry in the back.

In his blog post, Halifax Shipping News highlights a Request for Proposal (RFP) by the Depatment of Fisheries and Oceans (DFO) which calls for a "heavy lift" ship, to bring two recently built Hero Class midshore patrol vessels to the West Coast. The ships are built by Halifax Shipyards, and two copies are destined to serve on the West Coast of Canada.

Getting them there, according to the RFP, will involve - that seems to be a foregone conclusion - a non Canadian "heavy lift" ship to transport them through the Panama canal, and to the "area around Victoria". The RFP goes on to suggest ways to dodge taxes and cabotage rules.

Have a look at the RFP here - in particular this section is quite telling...

Since there are few, if any, Canadian heavy-lift vessels capable of performing this transport, most likely an international shipper will be using a foreign-flagged vessel to complete this Contract work. Shipping cargo from a Canadian departure point, aboard a foreign heavy-lift vessel means that there are Canadian Cabotage Law considerations and potential tariffs at the destination; http://laws-lois.justice.gc.ca/eng/acts/C-33.3/page-3.html#docCont. To avoid punitive tariffs most shippers would recommend the use of the closest U.S. sea-port to Victoria, B.C., such as Seattle, Washington, to be their destination.

CCG's Hero Class Mid Shore Patrol Vessel in Hamilton, January 2014

Incidentally, I found this article about dodging taxes, while looking for the graphic at the top - I guess the survey was correct, even the government wants to dodge their own taxes and regulations.