Board of Directors Meet in YUL
Chairman Rod Barnard led the Dec. 5th CBAA board meeting which was Rudy Toering’s final, and the first for new CEO, Jim Facette.
The agenda was highlighted by two key issues. The first was a briefing from Transport Canada official Gilles Bourgeois, Chef Environmental Protection and Standards, on the Carbon Offsetting Reduction Scheme for International Aviation (CORSIA). Canada is a signatory in the International Civil Aviation Organization (ICAO) initiative that will require international flights to track and offset CO2 emissions.
Commercial, business and private operators that meet an international flight threshold of 10 tonnes of annual CO2 emissions flying internationally will be required to comply. Domestic flights are not subject to CORSIA.
Of more immediate concern was an update of the Canada Revenue Agency (CRA) efforts to develop a new interpretation bulletin regarding the use of business aircraft for personal use, intended to replace the IT Bulletin IT-160R3. Cancelled in 2012, this bulletin allowed for the application of a first-class ticket evaluation (which most did) or the application of known charter rates.
The greatest concern currently is the open question of what guidance will be provided to auditors for the intervening years, 2012 to 2017/2018. The CBAA has made representations to the CRA for a policy that is both fair and workable. The board of directors stressed the importance of clarity and the position that such years would be best dealt with using the bulletin in effect until 2012, IT-160R3.
The board reinforced the importance of this issue to the industry. The need for an industry-friendly resolution cannot be overstated.
Jim Facette advised the board he and Rudy will meet with CRA officials and will take whatever other measures are necessary to advance the CBAA position.
The board will conduct a strategic planning exercise at its next meeting in April, approving a final version in June. CBAA Chapters will be encouraged to participate. Jim Facette will coordinate their input.
Board meeting for 2018 have been set as:
- April 11th & 12th in Toronto, ON
- June 11th in Waterloo, ON
- November 7th in Ottawa, ON