Boat_International_-_April_2016

PHOTOGRAPH: GUILLAUME PLISSON

W

ith 80 years of experience

in the marine sector,

Clyde & Co has become a

leading superyacht law firm. Here, partner

John Leonida, who is considered a leading

authority on superyacht law when he’s not

counselling his own clients, answers the

questions he is most frequently asked by

superyacht owners.

Do I need to pay tax on the purchase

of a private yacht?

If tax falls due on the importation or its use

then tax must be paid or accounted for.

If the owner legitimately can avail himself

of a relief from tax, for example, temporary

importation relief, then the conditions

for that relief must be maintained. But

if the scheme that results in lower tax is

not officially sanctioned, it’s just a scheme

and not a law. Such a scheme relies on an

interpretation of the law, which may not

be a view the relevant tax authority shares. 

Do I own the design of my yacht?

Unless you buy the intellectual property,

you will most probably have just a limited

licence to use the design for a single yacht

and to repair it. Nothing more.

Can I choose the jurisdiction that my

crew’s employment contracts adhere

to if, for example, my yacht is registered

in the Cayman Islands but is coming

to Europe?

Ordinarily, an owner is at liberty to choose

the law and jurisdiction of their commercial

relationships with their crew. However, in

the EU, the law with the closest connection

to the employment duties will determine

law of the employment contract regardless

of what the contract actually says. We have

seen the French courts, for example, seize

jurisdiction where the yacht, regardless

of flag, is based in France and the crew

members have shore-side accommodation.

In these cases French employment law

has been applied.

For advice on more superyacht-related legal

matters, contact [email protected]

Promotion

“You will probably have just

a limited licence to use the

design for a single yacht and

to repair it. Nothing more”

Superyacht owners need a safe

Rights of passage

haven when navigating

the choppy waters of marine law

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