IFTAIFTA Have You Ever Encountered This? Presented by Andrew Foster Department of Finance Revenue & Taxation Division Tax Program Administration Section

IFTAIFTAIFTAIFTAHave You Ever Encountered Have You Ever Encountered

This?This?Presented by

Andrew FosterAndrew FosterDepartment of Finance

Revenue & Taxation DivisionTax Program Administration

Section

IFTAIFTAIFTAIFTAHHAVEAVE Y YOUOU E EVERVER E ENCOUNTERED NCOUNTERED TTHISHIS??

Presented by

Andrew FosterAndrew FosterNew Brunswick

Licensing Licensing EncountersEncountersLicensing Licensing

EncountersEncounters

Have You Ever Encountered This?September, 2006

Encounter #1 ~ Double DipEncounter #1 ~ Double DipEncounter #1 ~ Double DipEncounter #1 ~ Double Dip

※Apply

1



※License revoked

※Apply

1



※Apply under company name

※Apply ※License revoked

1



※Red Flag

※Apply under sole name※License revoked※Apply under company name

= 1



※Pay up

※Apply ※License revoked※Apply under company name※Red Flag

1


Encounter #2 ~ The Name Encounter #2 ~ The Name GameGameEncounter #2 ~ The Name Encounter #2 ~ The Name GameGame

※1 owner ~ 2 entities

2



※Transfer trucks ※1 owner ~ 2 entities

2



※1 owner ~ 2 entities※Transfer trucks

$$Registration$$$$Registration$$

$$Sales tax$$$$Sales tax$$








※Roll over




※Roll over




※Roll over






※Remedy New & Renew Broker carrier agreement No registration/sales tax

※1 owner ~ 2 entities※Transfer trucks※Roll over

Reporting Reporting EncountersEncountersReporting Reporting

EncountersEncounters


Encounter #1 ~ Cheque It Encounter #1 ~ Cheque It Out!Out!Encounter #1 ~ Cheque It Encounter #1 ~ Cheque It Out!Out!

※Refund cheque

3



※Up in flames

※Refund cheque

3



※Remedy Stop payment Bond form Issue new cheque

※Refund cheque※Up in flames

3


Encounter #2 ~ Average Encounter #2 ~ Average KPLKPLEncounter #2 ~ Average Encounter #2 ~ Average KPLKPL

※Overview 1 KPL = 0.62 MPL Average KPL is 1-2 (0.62-1.24) Question over 4 (2.48)

4



※No information

※Overview

4



※Average KPL = 10 (6.2)

※Overview※No information

4

Audit Audit EncountersEncounters

Audit Audit EncountersEncounters


Encounter #1 ~ Magic TrickEncounter #1 ~ Magic TrickEncounter #1 ~ Magic TrickEncounter #1 ~ Magic Trick

※Records viewed

5



※Records vanished

5

※Records viewed


※Records viewed※Records vanished


※Records shredded

5



※Remedy: All records available Choose quarter Make copies

※Records viewed※Records vanished※Records shredded

5


Encounter #2 ~ System Encounter #2 ~ System FailureFailureEncounter #2 ~ System Encounter #2 ~ System FailureFailure

※Distance traveled Route Traveled vs. Route Reported

6



※Cost of error

※Distance traveled

6



※Remedy Change program Proper use Follow up

※Distance traveled※Cost of error

6


Encounter #3 ~ What the Encounter #3 ~ What the Blazes!??Blazes!??Encounter #3 ~ What the Encounter #3 ~ What the Blazes!??Blazes!??

※Return on reports

7



※Very cooperative

※Return on reports

7



※Bump in the road

※Return on reports※Very cooperative

7



※Cooperation restored

※Return on reports※Very cooperative※Bump in the road

7



※Burning blaze

※Return on reports※Very cooperative※Bump in the road※Cooperation restored

7



“Out of the frying pan…

…and into the fire!”

7


Encounter #4 ~ Fire Me, Encounter #4 ~ Fire Me, Please!Please!Encounter #4 ~ Fire Me, Encounter #4 ~ Fire Me, Please!Please!

※Wife hired

I don’t know what

I’m doing!!!

8



※Audit target※Wife hired

8



※KPL = Distance traveled…right? $0.69/L = 69 KM traveled

※Wife hired※Audit target

8


Encounter # 4 ~ Fire Me, Encounter # 4 ~ Fire Me, Please!Please!Encounter # 4 ~ Fire Me, Encounter # 4 ~ Fire Me, Please!Please!

※Wife fired

※Wife hired※Audit target※KPL = Distance traveled…right?!

8


Encounter #5 ~ What a Pile Encounter #5 ~ What a Pile of…of…Encounter #5 ~ What a Pile Encounter #5 ~ What a Pile of…of…

※Bad records

9


Encounter #5 ~ What a Pile Encounter #5 ~ What a Pile of…of…Encounter #5 ~ What a Pile Encounter #5 ~ What a Pile of…of…

※What’s that smell?

※Bad records

Oink!

9


Encounter #6 ~ Duck and Encounter #6 ~ Duck and CoverCoverEncounter #6 ~ Duck and Encounter #6 ~ Duck and CoverCover

※The appointment

10



※The visit※The appointment

10



※The sad truth

※The appointment※The visit

10



※The recovery

※The appointment※The visit※The sad truth

10



※The saving grace

※The appointment※The visit※The sad truth※The recovery

10


Encounter #7 ~ You Go Girl! Encounter #7 ~ You Go Girl! Encounter #7 ~ You Go Girl! Encounter #7 ~ You Go Girl!

※6-7 KPL 14-17 MPG

11


Encounter #7 ~ You Go Girl!Encounter #7 ~ You Go Girl!Encounter #7 ~ You Go Girl!Encounter #7 ~ You Go Girl!

※Supervisor’s advice Not with a 4x4! Are you selling?

※6-7 KPL

11


Encounter #7 ~ You Go Girl!Encounter #7 ~ You Go Girl!Encounter #7 ~ You Go Girl!Encounter #7 ~ You Go Girl!

※Confession

※6-7 KPL ※Supervisor’s advice

11


Encounter #8 ~ Out of Encounter #8 ~ Out of ControlControlEncounter #8 ~ Out of Encounter #8 ~ Out of ControlControl

※Large carrier

12



※Problem #1 Correct reporting Fuel purchase x 1.7 KPL = Distance

traveled

12



※Problem #2 32 trucks Ignored 29

12

※Problem #1



※Problem #3 Fuel cards Stolen for personal use 500,000 L

12

※Problem #1※Problem #2



※Remedy 500,000L deducted Recommendations Carrier’s actions Follow-up

※Problem #1※Problem #2※Problem #3

12



※Remedy 500,000L deducted Recommendations Carrier’s actions Follow-up

12

※Problem #1※Problem #2※Problem #3


A Special Thank You to all of the Government of New Brunswick

employees who shared their IFTA encounters.

QuestionsQuestions

OrOr

CommentsComments


SourcesSourcesSourcesSources※ office.microsoft.com/clipart ※ www.gnb.ca/0162/tax/fuel/ifta.htm※ www.iftach.org※ www.sciencemadesimple.net/

fuel_economy.php※ www.smartcarofamerica.com/

Documents

IFTAIFTA Have You Ever Encountered This? Presented by Andrew Foster Department of Finance Revenue & Taxation Division Tax Program Administration Section