News Release Archive
BUSINESS/CONSUMER SERVICES--REVENUE ACT REGULATIONS AMENDED
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The Department of Business and Consumer Services has good news
for vendors throughout the province.
Thanks to amendments to the Revenue Act regulations, vendors of
tangible personal property, gasoline and tobacco will be able to
collect, from the province, full or partial refunds for tax
remitted on credit sales which subsequently become uncollectible.
"Vendors will no longer be left holding the bag for taxes paid on
uncollected accounts," said Business and Consumer Services
Minister Don Downe. "If the purchaser has defaulted in repaying
the amount owing, then the vendor can request a rebate of the tax
remitted."
Four years ago, a similar amendment was made to the Health
Services Tax Act. This change was incorporated into the new
Revenue Act regulations in March of this year but has not, until
now, applied to gasoline and diesel oil vendors and tobacco
vendors.
The amendment, effective April 1, 1996, applies to uncollected
credit accounts, purchases paid for by NSF cheques and defaulted
lease payments. The purchase price must no longer appear as an
asset or as an account receivable in the vendor's books of
account.
"Once the amount is written off, application for refund must be
made within 48 months of the end of the fiscal year in which the
bad debt occurred," said Mr. Downe.
The rebate is calculated using the amount of tax paid, the
purchase or leasing price, and the portion of that price not yet
collected.
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Contact: David MacNeil 902-424-2933
Sean O'Connor 902-424-6718
trp June 19, 1996 - 3:15 p.m.
