firms.
25 In this regard, the Vancouver International Maritime Centre provides advice,
information and assistance to international shipping companies interested in
establishing, expanding or retaining shipping operations on Canada’s West Coast.
26
In a similar vein, the Canadian government and the provincial government in
British Columbia put into place a special initiative to facilitate the movement of key
management employees to Vancouver and other areas of British Columbia by way of
expediting permanent residence applications for such key employees.
27 Such initiatives have been made available to international shipping corporations demonstrating
an intent to establish a base of operations in Canada and create new employment
opportunities for Canadians. In addition to amending the Income Tax Act, the
Canadian government enacted consequential amendments to several other pieces
of legislation, including the Customs Act, R.S.C. 1985, c. 1 (2nd Supp.), in order to
achieve legislative consistency and to distinguish between international and domestic shipping activities for tax, duty and cabotage purposes.
28
5 General Conclusions and Evaluation
There can be little doubt that Canada’s tax-driven strategy has achieved the goal of
attracting international shipping corporations to move their operations and management to Canada with Vancouver being the primary, though not exclusive, choice for
such relocation.
29 While substantive data is difficult to come by, the information that
is available, anecdotal and otherwise, suggests marked success.
30
Within the first 5 years of the 1991 amendments to the Income Tax Act, 14 international shipping companies moved their head offices to Canada.
31 In 2002, an
estimated 25 international shipping groups were operating as international shipping
25 See Vancouver International Maritime Centre, “About Us” – http://vancouverimc.org/about-usvancouver-international-maritime-centre/. Accessed 29 December 2018. The Vancouver International Maritime Centre is funded, in part, by both the Canadian government and the Province of
British Columbia.
26 Vancouver International Maritime Centre personnel also consult with federal and provincial
governments regarding the legislative regulatory framework required to enhance the development
of the international shipping sector in Canada. See Vancouver International Maritime Centre,
“About Us” – http://vancouverimc.org/about-us-vancouver-international-maritime-centre/.
Accessed on 29 December 2018. In this regard, it is generally understood that Vancouver International Maritime Centre personnel were instrumental in persuading the Canadian government to
enact the changes to the Income Tax Act described herein.
27 Hodgson and Brooks (2003), p. 34.
28 Hodgson and Brooks (2003), p. 34.
29 Hodgson and Brooks (2003), pp. 41–43.
30 As Hodgson and Brooks note, many international shipping corporations are circumspect and
protective of information relating to their operations for competitive reasons. Hodgson and Brooks
(2003), p. 41.
31 Teekay Shipping (Canada) Ltd. (2011).
Taxation and Ship Management: A Canadian Case Study
467
25 In this regard, the Vancouver International Maritime Centre provides advice,
information and assistance to international shipping companies interested in
establishing, expanding or retaining shipping operations on Canada’s West Coast.
26
In a similar vein, the Canadian government and the provincial government in
British Columbia put into place a special initiative to facilitate the movement of key
management employees to Vancouver and other areas of British Columbia by way of
expediting permanent residence applications for such key employees.
27 Such initiatives have been made available to international shipping corporations demonstrating
an intent to establish a base of operations in Canada and create new employment
opportunities for Canadians. In addition to amending the Income Tax Act, the
Canadian government enacted consequential amendments to several other pieces
of legislation, including the Customs Act, R.S.C. 1985, c. 1 (2nd Supp.), in order to
achieve legislative consistency and to distinguish between international and domestic shipping activities for tax, duty and cabotage purposes.
28
5 General Conclusions and Evaluation
There can be little doubt that Canada’s tax-driven strategy has achieved the goal of
attracting international shipping corporations to move their operations and management to Canada with Vancouver being the primary, though not exclusive, choice for
such relocation.
29 While substantive data is difficult to come by, the information that
is available, anecdotal and otherwise, suggests marked success.
30
Within the first 5 years of the 1991 amendments to the Income Tax Act, 14 international shipping companies moved their head offices to Canada.
31 In 2002, an
estimated 25 international shipping groups were operating as international shipping
25 See Vancouver International Maritime Centre, “About Us” – http://vancouverimc.org/about-usvancouver-international-maritime-centre/. Accessed 29 December 2018. The Vancouver International Maritime Centre is funded, in part, by both the Canadian government and the Province of
British Columbia.
26 Vancouver International Maritime Centre personnel also consult with federal and provincial
governments regarding the legislative regulatory framework required to enhance the development
of the international shipping sector in Canada. See Vancouver International Maritime Centre,
“About Us” – http://vancouverimc.org/about-us-vancouver-international-maritime-centre/.
Accessed on 29 December 2018. In this regard, it is generally understood that Vancouver International Maritime Centre personnel were instrumental in persuading the Canadian government to
enact the changes to the Income Tax Act described herein.
27 Hodgson and Brooks (2003), p. 34.
28 Hodgson and Brooks (2003), p. 34.
29 Hodgson and Brooks (2003), pp. 41–43.
30 As Hodgson and Brooks note, many international shipping corporations are circumspect and
protective of information relating to their operations for competitive reasons. Hodgson and Brooks
(2003), p. 41.
31 Teekay Shipping (Canada) Ltd. (2011).
Taxation and Ship Management: A Canadian Case Study
467