Chapter 5 - Owner Eligibility for Registration
To be eligible for the allotment of registration marks or the issuance of a Certificate of Registration, an individual must be a Canadian and at least 16 years old. Canadian is defined in the Canadian Transportation Act, as "... a Canadian citizen or a permanent resident within the meaning of the Immigration Act, a government in Canada or an agent of such a government or a corporation or other entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least seventy-five per cent of the voting interests are owned and controlled by Canadians".
A permanent resident may be required to submit proof that they qualify to be a registered owner. Acceptable proof would be a Canadian Immigration Record and Visa, Form IMM 1000 issued by the Department of Citizenship and Immigration.
An entity must be formed under the laws of Canada or a province. As provincial laws may differ, legal advice should be sought from through Headquarters if there is doubt that an the corporate entity is qualified to be the registered owner of an aircraft.
Documentary Requirements for an Entity
The requirements which must be met by an applicant for registering an aircraft are set out in the Standard 222.16. A completed application form, signed by an authorized signing officer of each owner that is an entity is required. This means that the information requested on the application form must be provided by the applicant. In keeping with 222.16(b), documentation which establishes the applicant for registration as aircraft owner is required.
Legal advice from Headquarters has been provided on the question of the specific documentation required from an entity. That advice clearly states that there is a duty to make sure that an aircraft is not wrongly registered (so as not to cause damage to its true owner) and that, as a result, supporting documentation may be requested. Requesting supporting documentation as to the authority to make the application is considered to be the "prudent course".
Along with the information requested on the application form which must be completed in keeping with the standard, the following documentation should be obtained to verify that an entity is qualified to be the registered owner of an aircraft:
- a copy of the document by which the entity is formed (from provincial or federal government);
- a copy of the entity’s Articles of Incorporation which clearly stipulate signing authority; and
- a copy of the entity's current Annual Return.
NOTE: Unless an entity has been wound up, dissolved or amalgamated (see CARs 202.57), it retains its "active" status as an entity. This is the case, for example, in B.C. where failure to file an annual return means that the entity may no longer be recognized by the province (or Revenue Canada) but it still remains an entity until the province moves to dissolve it. This may differ from province to province. While lack of a current annual return does not necessarily indicate that an entity is not eligible to be the registered owner of an aircraft, it may be a "flag" to you that a further look is required before making a determination.
5.2 NON-CANADIAN ENTITY (FOREIGN- CONTROLLED CORPORATION)
CARs 202.15(3) and Standard 222.15(1)
A Canadian corporation that is controlled by Canadians, but has less than a 75% voting interest owned and controlled by Canadians, is considered a non-Canadian entity. Non-Canadian entities are eligible as owners of private Canadian aircraft only, as long as regulatory requirements are met. A copy of their certificate of incorporation (or equivalent document) is required when they apply for registration.
The flight time accumulated in Canada by the aircraft may not be less than 60% of the total flight time accumulated at the end of a six month period. This means that 60% of all flights, ignoring interruptions for fuel, maintenance or emergency, must originate or terminate in Canada. CCARCS determines the flight time reporting period at the time of registration. To verify the flight time, a corporation must submit to Transport Canada a "Private Aircraft Accumulated Flight Time Report of Foreign-Controlled Canadian Corporations" form 26-0424, every 6th month. Should they not meet the 60 percent flight requirement, their Certificate of Registration is cancelled. If they have more than one aircraft registered in their name, it does not affect the entity’s eligibility to remain the registered owners of the other aircraft.
CARs 202.15(4) authorizes the Regional Manager, General Aviation to exempt owners from the reporting requirements for aircraft that have been registered in the entity’s name since September 30, 1990. This only exempts the owner from reporting. They must still comply with CARs 202.15(3)(c) and maintain the records as stated in Standard 222.15(1). Any exemption issued should stipulate this. A copy of the exemption should be forwarded to Headquarters.
When issuing a Certificate of Registration as outlined in Chapter 8, the following additional steps should be taken when the owner is a non-Canadian entity:
When updating CCARCS with the owner information, ensure the owner is listed as a non-Canadian entity. In the case of co-registered owners, a non-Canadian entity must be listed first.
A Notice (form 26-0439) advising that their entity does not meet the definition of "Canadian" is printed along with the Certificate of Registration and sent to the owner.
Bring forward the file one month prior to the end of the reporting period.
Send a copy of form 26-0424 "Private Aircraft Accumulated Flight Time Report of Foreign-Controlled Canadian Corporations" to the owner. This is generated through CCARCS.
When the report is returned by the owner, check that the flight time meets the 60% requirement.
Update CCARCS to confirm receipt of the report and show the new reporting period.
A copy of the report is forwarded to Headquarters.
- Bring forward the file one month prior to the end of the new 6 month reporting period and start the cycle again.
Headquarters supplies to the regions a list of aircraft that are registered to non-Canadian entities.
5.3 CO-REGISTERED OWNERS
CARs 202.35(1), 202.73
A Certificate of Registration may list several owners. There is no restriction on the number of owners. Applicants must choose one person to be the "mail recipient" and place that person's name first on the Application for Registration form. Only the mail recipient will receive mail (e.g. safety notices) from Transport Canada, Civil Aviation. A change of address for a co-owner who is not the mail recipient does not require the Certificate of Registration to be re-issued.
When one of the registered owners sells their interest in the aircraft, the issuance of a new Certificate of Registration is necessary. See Chapter 8.8 for requirements.
If one of the owners is a non-Canadian entity, they should be listed first on the Certificate of Registration. This then allows the owner type data to be captured in CCARCS and makes the tracking of the flight time requirements possible.
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