2004-1 FT/GT/TT, March 2004

The purpose of this bulletin is to provide general information about upcoming changes to the security policy.

The Ministry of Revenue reviewed its administrative policies and procedures on security that apply to ministry designated collectors and other registrants required to post security under the Fuel Tax Act, Gasoline Tax Act, or Tobacco Tax Act  and decided to:

1. require security (i.e. letter of credit or surety bond) from all tax collectors and other registrants; and
   
2. consider reducing security for those with a good compliance history, to an amount that corresponds better to the actual tax at risk in the event of financial difficulty or failure to properly account for tax.

In determining the amount of security to be demanded by the Minister, the ministry will consider the statutory minimums in addition to each registrant's compliance history and financial situation.

Registrants are not required to take any action at this time. 

The ministry is currently determining how the new security policy will apply to each designated collector and other registrants who are required to provide security.  On April 1, 2004, the ministry will begin the process of contacting registrants directly with details on how the new policy and procedures will affect them.

For More Information:

Cathy D. Rae
Senior Manager, Operations - Motor Fuels and Tobacco Tax
Client Accounts and Services Branch
33 King Street West
PO Box 625
Oshawa ON   L1H 8H9

• Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
• Fax: 905 436-4511
• Teletypewriter (TTY): 1 800 263-7776

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