Revised Reciprocal Taxation Agreement with the Yukon Territory

From Bill Matthews, Assistant Comptroller General

To: Chief Financial Officers

Cc: Deputy Chief Financial Officers

This Policy Notice is to advise you of the revised Reciprocal Taxation Agreement (RTA) concluded between the federal government and the Yukon Territory, effective July 1, 2010.

In particular, the revised RTA includes a new commitment to pay fuel tax imposed under the Fuel Oil Tax Act, R.S.Y. 2002, c. 97.  As a result, departments and agencies will have to pay fuel tax in this jurisdiction.  For the applicable fuel tax rates, please refer to the territorial legislation.

The revised RTA also includes the federal government's ongoing commitment to pay tobacco taxes imposed under the Tobacco Tax Act, R.S.Y. 2002, c. 219.

This is consistent with the Treasury Board Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees.

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 Yukon Territory.

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: Serge.Joanisse@tbs-sct.gc.ca.