Carriers operating reefers, idling reduction devices could be eligible for tax refund: OTA

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TORONTO, Ont. — The Ontario Trucking Association (OTA) has learned of a recent Federal Court decision that provides for an expanded exemption from tax on diesel fuel used for heating or cooling. OTA officials learned of the ruling through the associations tax advisors at Deloitte & Touche. The decision could present an opportunity for carriers operating refrigerated units and/or idling reduction devices to apply for a refund on federal excise tax paid in the last two years on fuel used to operate the equipment.

Some members may have been recovering tax using narrower approaches previously available, but this change increases the opportunity for recovery, so this is a very good time to review fuel costs and submit claims on all heating and cooling related fuel consumption, the OTA said in a release.

OTA will be partnering with Deloitte to seek refunds on behalf of interested carriers. The two groups will work with the carriers to collect the necessary information they need to apply for a refund, and Deloitte will handle the process from there. Deloitte has agreed to work on a contingency basis. If Deloitte is successful in obtaining refunds on behalf of participating carriers they will retain 35% of the refund from the carrier, a portion of which will be provided to OTA and the Canadian Trucking Alliance.

To set up an appointment with Deloitte to discuss this opportunity, you must first register with the Ontario Trucking Association. The OTA is asking interested parties to send a letter to the attention of Stephen Laskowski, vice-president, Ontario Trucking Association, 555 Dixon Road, Toronto, Ont., M9W 1H8. Parties can also send a fax to 416-245-6152 or e-mail stephen.laskowski@ontruck.org.

The OTA is asking that the letters being signed by a recognized signing authority and state the following:

“My company is interested in being contacted by Deloitte and Touche to explore the possibility of participating in a tax refund claim regarding federal excise tax to heat or cool tractors or trailers. I understand that if Deloitte and Touche is successful on my behalf, a portion of the recovery will be retained and shared between Deloitte and Touche, and the Ontario Trucking Association. I also understand that this offer is only available to members of the Ontario Trucking Association.

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