Date: September 2009
To: Chief Financial Officers, Deputy Chief Financial Officers and Fleet Managers
Subject: Revised Reciprocal Taxation Agreement with the Northwest Territories
This Policy Notice is to advise you of a commitment made by the federal government under the terms of the revised Reciprocal Taxation Agreement (RTA) concluded with the Northwest Territories.
Compliance with the terms of the RTA is mandatory according to Treasury Board's Policy on the Collection and Remittance of Provincial Sales Taxes (Application of Reciprocal Taxation Agreements and Comprehensive Integrated Tax Coordination Agreements).
There is no general sales tax in the Northwest Territories. However, the revised RTA with the Northwest Territories (effective September 1, 2009) includes the federal government's ongoing commitment to pay motor registration fees imposed under the Motor Vehicles Act, R.S.N.W.T. 1988,c.M-16 and tobacco taxes imposed under the Tobacco Tax Act, R.S.N.W.T. 1988,c. T-5.
In addition, the revised RTA includes a new commitment to pay fuel tax imposed under the Petroleum Products Tax Act, R.S.N.W.T. 1988,c.P-5 as of September 1, 2009. As a result of the successful conclusion of this RTA, departments and agencies must now pay fuel tax in this jurisdiction.
For the applicable fuel tax rates, please refer to the territorial legislation.
Fleet Management Services
Departments currently served by ARI Fleet Management Services are automatically exempted from taxes (where applicable) at the time the Fleet Management card is charged. ARI Fleet Management Services is in the process of making the necessary changes so that fleet cards will no longer exempt purchases of fuel from the applicable taxes in the Northwest Territories.
Financial Management Community: Should you require general information on this subject please do not hesitate to contact Anna Marinelli CGA, Financial Management Policy Division, at 613-954-3692 or by e-mail at: Contact Anna Marinelli by email: Anna.Marinelli@tbs-sct.gc.ca
Should you require specific information about territorial fees and taxes, contact information can be found on the following website. http://www.fin.gov.nt.ca/taxation/fuel/index.htm
Fleet Managers: Should you require additional information on this subject please contact your fleet credit card service provider or Serge Joanisse, Real Property and Materiel Policy Division at 613-957-2524 or by e-mail at: Contact Joanisse Serge by email: Joanisse.Serge@tbs-sct.gc.ca.
Original signed by Bill Matthews
Assistant Comptroller General
Financial Management and Analysis Sector
Office of the Comptroller General
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