News Release Archive
BUSINESS/CONSUMER SERVICES--PROVINCIAL TAX AMNESTY ANNOUNCED ----------------------------------------------------------------- Businesses and individuals will have a chance over the next three months to pay unreported provincial taxes without being penalized, Business and Consumer Services Minister Don Downe announced today. A provincial tax amnesty has been declared from May 1 to July 31 and is targeted to businesses and individuals who have yet to forward taxes collected from customers, or have not paid taxes owed on purchases. Every month businesses forward to the Provincial Tax Commission the amount of health services, tobacco, gasoline and diesel taxes collected from customers during the month. "The vast majority of businesses remit these taxes on time and in full," Mr. Downe said. "However there are some who, for various reasons, do not forward this money that has already been paid by their customers. "We are offering these businesses a deal: forward this money to government and you won't be penalized or charged." In order to be eligible for the amnesty, the business will voluntarily pay, or make arrangements to pay, the amount due plus interest. The eligible business must not be under audit by the tax commission, or have been contacted about an audit. Individuals who make "big ticket" purchases, such as a boat or a car, outside the province are also covered by the amnesty. These individuals are refunded the provincial sales tax in the province in which the purchase was made and are expected to pay the Nova Scotia tax. The amnesty will also apply to contractors who import building materials from another province for use in Nova Scotia. The materials are not taxed in the province of purchase, but taxes are to be paid to Nova Scotia. "Provincial tax auditors are very good at recovering unremitted taxes," Mr. Downe said. "Auditors recover about $15 million each year." Penalties for intentionally not remitting taxes range from 25 to 105 percent of the amount owed. As the department responsible for administering provincial tax rules, Business and Consumer Services is sensitive to the concerns of businesses that collect taxes on behalf of the province, the minister said. "The planned harmonization of the provincial sales tax and the GST will make it simpler for these businesses. They will then be dealing with one sales tax, one administration and one system, leaving them more time to spend on their businesses rather than filling out forms." All registered vendors will be directly informed of the amnesty program. -30- Contact: David MacNeil 902-424-2933 trp Apr. 30, 1996 - 12:20 p.m.