Tall Ships that have previously been granted a waiver of Canadian withholding taxes that would otherwise be required under Regulation 105 of the Income Tax Regulations, are required to file a T2 Income Tax Return.

Failure to file this Return will result in future Regulation 105 waiver applications being denied. That is, income tax would, for example, be deducted on payments for the 2009 TALL SHIPS ATLANTIC CHALLENGE® event in Nova Scotia or other similar business at other Canadian Ports. This would apply to vessels that received a waiver on a previous visit to any Canadian jurisdiction. For example, those vessels that visited Halifax in 2007 and were granted a waiver from having taxes withheld on appearance fee payments would be required to file a Canadian Tax Return for their fiscal year in which those appearance fees were received.

The above information is provided for information only. Ship owners should contact their tax advisors. For official information please visit the Canada Revenue Agency’s website: www.cra-arc.gc.ca