infoBulletin 2004-2, revised April 2006

Staff from the Tax Compliance Branch, Audit and Inspection Section at the Ministry of Revenue, monitor compliance with the provisions of the Fuel Tax Act, Gasoline Tax Act and Tobacco Tax Act.

Additional Revenue Inspectors to Focus on Retail Tobacco Outlets

Starting late April, 2006, Revenue Inspectors will begin focussing on retail tobacco outlets.  Revenue Inspectors will continue to be in uniform and driving marked enforcement vehicles.  The inspections will have enforcement and audit components. Revenue Inspectors are empowered to lay charges, assess penalties and seize illicit tobacco, which is subject to forfeiture.

For further information on regulatory and enforcement provisions, see Ontario Tax Bulletin TT 7-2004 Budget Measures Act (Fall), 2004: Enhanced Regulatory and Enforcement Provisions under the Tobacco Tax Act.

Revenue Inspection Program

Revenue Inspectors are Provincial Offences Officers, operating in defined geographic areas.  Their authority includes assessing penalties and issuing tickets for offences under the relevant tax statutes.

Tobacco Inspections

Revenue Inspectors conduct tobacco inspections at tobacco wholesale and retail outlets throughout Ontario, checking for untaxed tobacco products, and educating retailers about their obligations.  The Ministry is committed to ensuring compliance through enforcement programs such as these, as tax evasion puts honest business operators at a competitive disadvantage.

Fuel and Gasoline Inspections

Revenue Inspectors continue to maintain an inspection program under the Fuel Tax Act and Gasoline Tax Act.

Fuel Sampling

Inspectors sample the fuel tanks of diesel vehicles under the coloured fuel program to identify operators who may be avoiding fuel tax of 14.3 cents per litre by using furnace oil, or similar tax-exempt fuel, to power their vehicle.  Tax-exempt fuel is coloured with red dye to aid its detection.

Inspectors conduct regular visits to locations with fuel storage facilities, bulk plants, and service stations to ensure taxes have been paid on products used in licensed vehicles and to detect any misuse of tax exempt product.

International Fuel Tax Agreement (IFTA)

Inspectors monitor interjurisdictional commercial vehicle traffic for compliance with registration requirements under IFTA.  IFTA provides for the sharing of fuel taxes paid by commercial ventures based on travel reported in Ontario and one or more other jurisdiction.

For More Information:

Ministry of Revenue
Tax Compliance Branch
Senior Manager, Audit and Inspection
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

This publication and various other English and French bulletins published by the Ministry of Revenue, may be obtained online at ontario.ca/revenue.

The Fuel Tax Act, Gasoline Tax Act, Tobacco Tax Act and Ontario's other statutes and regulations may be obtained online at www.e-laws.gov.on.ca.

© Queen's Printer for Ontario, 2006

ISBN 1-4249-0838-8