This volume of the IFTA NewsFlash contains information on the interest rates for the period April 1, 2006 to September 30, 2006, as well as the change in how interest is calculated on a late filed return and any outstanding tax liability. This NewsFlash also outlines the requirements for cancelling an IFTA licence and provides information on completing the quarterly tax return.

Interest Rate & Calculation

Interest Rate

The current interest rate effective April 1, 2006 to June 30, 2006:

• applicable to any outstanding tax liability is 6%; and
• applicable to any refunds not paid within 90 days is 6%.

The interest rate effective July 1, 2006 to September 30, 2006 will remain at 6%. Interest rates are revised every quarter.

Interest Calculation - Late Returns and Payments

Effective July 1, 2006, the IFTA Articles of Agreement is being amended to require that a full month's interest accrues for any portion of a month on which tax owed remains unpaid.  If a return and full payment is not received by the due date, interest will be charged to the last day of the month in which full payment is received.

Licence Cancellation

Requirement When Cancelling Your IFTA Licence

Effective July 1, 2006, the IFTA Articles of Agreement is being amended to clarify the definition of 'cancellation'. You may cancel your IFTA licence when you are no longer operating qualified motor vehicles interjurisdictionally, or if you prefer to acquire single trip permits for interjurisdictional travel. The Ministry of Revenue may cancel your IFTA licence if you choose not to renew your IFTA licence or you report no interjurisdictional operations over the last year.

An IFTA licence will only be cancelled if the licensee has complied with IFTA, filed all tax returns, and has paid all taxes, penalties and interest due. If an IFTA licence is cancelled, the original licence and any copies, and all decals must be destroyed.

Information on Completing IFTA 501 or IFTA 503 Tax Returns

If you wish to cancel your IFTA licence, check the appropriate box in the top right-hand corner of the IFTA Quarterly Tax Return - IFTA 501/503 and enter the last date of business.

Please do not complete the date box at the top right-hand corner of the return if you are checking any of the other boxes (e.g. Amended Return). The date box is only to be completed if you are cancelling your IFTA licence.

Ministry of Revenue

Phone
Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
Teletypewriter (TTY) 1 800 263-7776

Fax
905 436-4507
905 436-4511

Mail
Client Accounts and Services Branch
Motor Fuels & Tobacco Tax Section
33 King Street West
Oshawa ON  L1H 8H9

Internet
www.iftach.org
ontario.ca/revenue

© Queen's Printer for Ontario, 2006

ISSN 1206-7105