TORONTO, (Sept. 23, 2004) — The Canadian Trucking Alliance is reminding carriers they can still take advantage of a deal worked out betweent the truck group and the state of New Jersey that would avoid having equipment seized at roadside for having failed to pay the state’s Corporate Business Tax (CBT).
As of September 2004 CTA continues to get calls from members who have been seized at roadside and forced to pay ten years of CBT back taxes (plus interest and penalties.
If a carrier’s equipment is seized at a New Jersey roadside the carrier would face payments of the equivalent of 10 years worth of CBT back taxes plus interest and penalties. CTA was able to negotiate a mitigation package which saw carriers pay current tax year plus three years back taxes plus interest and penalties. The other key element of this agreement was that for prior tax years, carriers would not have to complete the required CBT tax forms; but instead submit a declaration of mileage, which would indicate their minimum CBT tax status — $500 US per year. This aspect of the agreement was critical as typical accounting fees associated with filing such state taxes run over $2000 per tax year.
That agreement expired December 31st, 2003. However, the New Jersey Department of Treasury has been in contact with CTA to offer the industry another opportunity to avoid having equipment seized at roadside. The State is offering Canadian trucking firms who have yet to be discovered by the state a similar arrangement to the previous terms negotiated by CTA minus the non-filing requirements for past tax years. Consequently, carriers taking advantage of this new offer will mitigate their tax liability but not their tax filing costs if they rely upon external accounting services.
To take advantage of this offer by the State interested carriers must contact the State directly. CTA will provide the name of the contact person to for-hire members along with more detailed information regarding the tax. Carriers are automatically a member of CTA once they join their provincial association.
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