Revised Reciprocal Taxation Agreement with the Province of Saskatchewan and the Territory of Nunavut
Date:
To: Senior Financial Officers, Senior Full-time Financial Officers and Fleet Managers
This Policy Notice is to advise you of commitments made by the federal government under the terms of revised Reciprocal Taxation Agreements (RTA) concluded with the province of Saskatchewan and the territory of Nunavut.
Compliance with the terms of RTAs 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).
The revised RTAs with the province of Saskatchewan (effective ) and the territory of Nunavut (effective ) include a commitment by the federal government to pay additional taxes. The most significant of these is the fuel tax. As a result of the successful conclusion of these RTAs, departments and agencies must pay fuel tax in these two jurisdictions.
For the applicable fuel tax rates, please refer to the relevant provincial or territorial legislation. Questions about provincial and territorial legislation should be directed to the contacts for the appropriate jurisdiction.
The revision of the RTA with Saskatchewan has not changed the federal government's exemption from the province's general sales tax. There is no general sales tax in Nunavut.
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 Saskatchewan and Nunavut.
Departments using other Fleet Management Services may have been charged fuel taxes at the time of purchase and the department would then claim a refund. In order to comply with the revised RTAs, departments and agencies must not claim fuel tax rebates from the province of Saskatchewan and the territory of Nunavut.
Inquiries
Financial Management Community: Should you require additional information on this subject please do not hesitate to contact Stephen Cole, Financial Management Policy Division, at 613-941-7200 or by e-mail at: Cole.Stephen@tbs-sct.gc.ca.
Province of Saskatchewan: Should you require information about provincial taxes and fees, contact information for the province can be found on the following website.
http://www.finance.gov.sk.ca/taxes/
Territory of Nunavut: Should you require information about territorial taxes and fees, contact information for the territory can be found on the following website.
http://www.gov.nu.ca/finance/index.shtml
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: Joanisse.Serge@tbs.sct.gc.ca.
Original signed by John Morgan
Assistant Comptroller General
Financial Management and Analysis Sector
Office of the Comptroller General
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