Breakout Session Introduction/General Instructions Fuel –Tax paid purchases-On-the-Road & Bulk.

Breakout SessionBreakout Session Introduction/General Introduction/General

InstructionsInstructionsFuel –Tax paid Fuel –Tax paid

purchases-On-the-purchases-On-the-Road & Bulk.Road & Bulk.

The enclosed Scenarios will be used by you The enclosed Scenarios will be used by you and your team to determine the issues that and your team to determine the issues that should be raised. The intent is to illustrate should be raised. The intent is to illustrate that the applicable articles and sections of that the applicable articles and sections of the agreement remain in force and are the agreement remain in force and are applied correctly.applied correctly.

The exercise is to identify the issues, and The exercise is to identify the issues, and present them. The facilitators will assist in present them. The facilitators will assist in presenting the issues and will allow for presenting the issues and will allow for discussion to enhance our collective discussion to enhance our collective understanding of not only the agreement, understanding of not only the agreement, but our individual jurisdiction statutory but our individual jurisdiction statutory requirements, policies, and business requirements, policies, and business procedures that may affect the audit procedures that may affect the audit program.program.

When analyzing the enclosed documents When analyzing the enclosed documents and working papers, refrain from becoming and working papers, refrain from becoming overly concerned with the mathematical overly concerned with the mathematical results, as the result is not relevant to the results, as the result is not relevant to the exercise.exercise.

INSTRUCTIONS CONTINUEDINSTRUCTIONS CONTINUED

In discussing the issues refrain from mentioning In discussing the issues refrain from mentioning specific taxpayer names (to maintain specific taxpayer names (to maintain confidentiality).confidentiality).

Instructional Objectives:Instructional Objectives: Identify Tax Paid PurchasesIdentify Tax Paid Purchases Identify isolated or recurring errorIdentify isolated or recurring error There are a few commonly occurring errors to There are a few commonly occurring errors to

look for during the audit process-look for during the audit process- If the type of error that’s occurring can’t be If the type of error that’s occurring can’t be

determined, expand the audit in that particular determined, expand the audit in that particular area.area.

Unusual clerical errors are not to be included in Unusual clerical errors are not to be included in the error adjustment factor but correct it as a the error adjustment factor but correct it as a separate, stand alone adjustment.separate, stand alone adjustment.

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 1Exhibit 1

Location Location DateDate PricePrice Product DSLProduct DSL Total $ 801.29Total $ 801.29Gallons 195.96Gallons 195.96Invoice 3176Invoice 3176 Truck 4330Truck 4330Sold to: Centre Truck Inc.Sold to: Centre Truck Inc.The receipt was attached to the driver’s trip sheet.The receipt was attached to the driver’s trip sheet.

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 2XY Fuel & Duty Free –Detroit, Michigan 48216

Number 9085-3705Date 12/23/2008

Company: Centre Truck Inc. Truck: 123 No State, Federal, Sales, Duty, Motor Fuel or other Taxes are applicable.

Product: DSL Reefer Quantity Unit CostTotal

Non sales -tax N 49.347 2.229

$109.99

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 3Pee Wee Fuel Stop

Your full service Reservation stationLocation: Sanborn NY

Date: 5/10/2008 Product: DSL

Invoice 1232 Gallons 50Price $2.19

Total $109.50

Sold Centre Truck Inc. Truck: 123

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 4Exhibit 4

ON-Hamilton- D Fuel ON-Hamilton- D Fuel

StopStop

Qty 797.3 Qty 797.3 (Inv.9353/9350)(Inv.9353/9350)

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 5Exhibit 5O.W & SonsO.W & SonsBulk Fuel SupplierBulk Fuel SupplierLocation: Nepean, ONLocation: Nepean, ONProduct: DSLProduct: DSLSold Centre Truck Inc.Sold Centre Truck Inc.

ScenarioScenarioCentre Truck Inc.Centre Truck Inc. has been purchasing Bulk Fuel from has been purchasing Bulk Fuel from O.W & Sons O.W & Sons for the entire audit period of April01, 2006 to for the entire audit period of April01, 2006 to

March 31, 2009. March 31, 2009. Upon investigating the monthly fuel statements supplied by Upon investigating the monthly fuel statements supplied by O.W O.W

& Sons& Sons the thecompany has made minimum payments to the account. company has made minimum payments to the account.

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 6Exhibit 6Big Easy PetroBig Easy PetroLocation: New Orleans, LALocation: New Orleans, LADate: 6/10/2008 Date: 6/10/2008 Product: DSLProduct: DSLInvoice 14023Invoice 14023 GallonsGallons 150150

Price $2.26Price $2.26Total $339.00Total $339.00

Sold : Arc TransportSold : Arc Transport Centre Truck Inc.Centre Truck Inc.Truck: 1145Truck: 1145

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc. Toronto, ONCentre Truck Inc. Toronto, ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 7Exhibit 7D. Fuel StopD. Fuel StopLocation: Pittsburgh, PALocation: Pittsburgh, PADate: 15/01/2007 Date: 15/01/2007 Product: DSLProduct: DSLInvoice 1900Invoice 1900 GallonsGallons 225225

Price $2.227Price $2.227Total $501.08Total $501.08

Sold Centre Truck Inc.Sold Centre Truck Inc. Truck: 123Truck: 123

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 8Exhibit 8O.W & SonsO.W & SonsBulk Fuel SupplierBulk Fuel SupplierLocation: Nepean, ONLocation: Nepean, ONProduct: DSLProduct: DSLBulk Fuel WithdrawalsBulk Fuel WithdrawalsSold: Centre Truck Inc.Sold: Centre Truck Inc.TruckTruck DateDate GallonsGallons Litres Litres DriverDriver100100 Oct 1Oct 1 210 210 794.9794.9 JamesJames100100 Oct1Oct1 110.0110.0 416.4416.4 ReeferReefer123123 Oct 1Oct 1 215 215 813.9813.9 BenBen123123 Oct1Oct1 50.050.0 189189 ReeferReefer100100 Oct 8Oct 8 184.0 184.0 696.5696.5 JamesJames100100 Oct 8Oct 8 110.0110.0 416.4416.4 ReeferReefer123123 Oct 10Oct 10 215 215 813.9813.9 BenBen123123 Oct10Oct10 110.0110.0 416.4416.4 ReeferReefer102102 Oct 1Oct 1 184 184 696.5696.5 RockyRocky102102 Oct1Oct1 5050 189.3189.3 ReeferReefer123123 Oct 1Oct 1 218 218 813.9813.9 BenBen123123 Oct1Oct1 50.050.0 189.3189.3 ReeferReefer

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 9Exhibit 9Home MadeHome MadeLocation: Toronto, ONLocation: Toronto, ONDate: 15/12/2008 Date: 15/12/2008 Product :Bio-Product :Bio-

DieselDieselInvoice 0Invoice 0 GallonsGallons 600600

Price $0.00Price $0.00Total $0Total $0

Sold Centre Truck Inc.Sold Centre Truck Inc. Truck: Truck: 123123

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 10Exhibit 10

O CanadaO Canada

Location: Toronto, ONLocation: Toronto, ON

Date: 24/12/2008 Date: 24/12/2008 Product: Product: DieselDiesel

Invoice 0Invoice 0 GallonsGallons 700700

Sold :Owner OperatorSold :Owner Operator Truck: Truck: 11151115

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 11Exhibit 11

Review 3rd party Review 3rd party fuelfuel

statement for statement for Feb2007 forFeb2007 for

CA (California) andCA (California) and

identify any error identify any error in thein the

Fuel type column.Fuel type column.

FUEL INVOICE EXHIBITSFUEL INVOICE EXHIBITSInternational Fuels Tax Audits of:International Fuels Tax Audits of:

Centre Truck Inc.Toronto,ONCentre Truck Inc.Toronto,ONFor the period: October to December 2008For the period: October to December 2008

Exhibit 12Exhibit 12

Discuss record keeping Discuss record keeping requirements for requirements for

Tax-paid bulk fuel purchases as Tax-paid bulk fuel purchases as part ofpart of

IFTA Procedures.IFTA Procedures.