Unwelcome notices posted from Canada are arriving at many corporate flight department offices. The Canadian government wants tax payment for nav services rendered going all the way back to 2003.
Some 3,600 U.S. corporate operators are getting the notice now through Nav Canada, the privatized air traffic management provider. A recent audit of the company by the Canada Revenue Agency for a period from 2003 to present determined that Nav Canada should have been collecting the Canadian Goods and Service Tax (GST) for its services to non-resident corporate aircraft, but had failed to do so. Now it wants its money.
A spokesman for Nav Canada said yesterday that most of the invoices were for less than C $ 200 ($ 185), but heavy users of its services could be charged more, in at least one case as much as C $ 30,000 . All totaled, the outstanding tax bill is C $ 1.9 million.
He noted that private pilots had been paying the tax all along and that commercial operators were exempt from it. Nav Canada thought corporate aircraft were exempt as well, but the CRA audit disabused it of that idea.
Meanwhile, NBAA thinks Nav Canada´s original position was correct and said today it will challenge the decision and is "exploring all available options."