CTA Reaches Voluntary Agreement with State of New Jersey on CBT
The state of New Jersey continues to seize both US and Canadian-plated trucks for failure to pay the state Corporate Business Tax.
All trucking companies making pick-ups or deliveries in New Jersey are required by the state to pay the New Jersey Corporate Business Tax. The tax is applied to all companies and drivers, whether or not they have a terminal in the US. Failure to comply will result in costly fines and the risk of having their equipment impounded.
Thanks to the Canadian Trucking Alliance, the state of New Jersey has agreed to renew a voluntary compliance arrangement. The NJ Division of Taxation is offering CTA members the opportunity to voluntarily come forward to register their businesses and file the appropriate taxes starting November 2015 and ending December 31, 2015.
Members participating in this program are eligible for favourable terms offered under the Voluntary Disclosure Program. (Only CTA members will be processed under this specific agreement
- Under the agreement with the CTA, New Jersey will only require payment of the CBT for the current tax year (2015) plus the prior 3 years (2012-14). A statutory 5% penalty and interest charge will also apply
No Corporate Tax Returns Required for Previous Tax Years for CBT Minimum Tax Filers
- New Jersey will not require carriers who qualify for the minimum tax payment (presently US$500) to file a CBT return for previous tax years (2012-14), but will require returns for 2016 and future years. In order to minimize the administrative cost of compliance, New Jersey has agreed to accept a statement on company letterhead certifying that the company; has no property or employees in New Jersey, has little relative activity (miles) in the state, and is a minimum tax filer.
Opportunity for Previously Assessed Companies
- The agreement is available to carriers who have not been previously contacted by the state. However, New Jersey has indicated to CTA that it will consider potential remedies for Canadian carriers previously assessed on a case-by-case basis.
Original article source: BCTA’s Bulletin – CTA Reaches Voluntary Agreement with State of New Jersey on CBT
Tia Chisholm, HUB International TRANSPORTATION
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