IFTA Audit
- Thread starter DIETCOKE
- Start date
30
We just finished one and $10,000 later it went rather smooth. When we replaced 10 trucks someone gave the wrong info to the licensing so we actually did owe that money. Otherwise we use an outside firm for all of our reporting and it went very smooth, they did it all and everything else was correct.
10
Ifta
We were audited by IFTA maybe 4 years back.
The reason being that a carrier we worked for quite a bit was audited themselves.
The fellow spent 2 1/2 weeks at the office. He went through everything with a fine tooth comb.
He was quite pleasant. This was his 1st very big audit, we had 3 trucks at the time but ran most of the lower 48, it was lots of work he said.
Much more than an outfit with several hundred trucks doing intra provincial.
The trick is to be helpful and answer the questions as directly as possible.
Our fuel tax numbers were all off because I had jerry rigged a program on EXCEL that was pretty complicated.
In the end we had to pay out the hefty sum of $120.00 and promise to use a fuel tax program.
The auditor came back 90 days later to check up on us and to hand over his report.
We have been using Wolfbyte since then and it is practically impossible to mess up. This gives you real insight into your operating costs and what the real price of fuel is.
We just got audited by Canada Customs before Christmas. That was real bizzare. I could not figure out what they were looking for.
This fellow spent 7 days going over every ltl shipment we made coming into the country over the last 18 months. His concern was making sure the freight was cleared. Why on earth we would not clear somthing is beyond me!!
The only other thing he asked for was the purchase contracts for all our equipment and the repair bills for all the equipment within the last year.
In the case of the repairs the auditor saw good faith and let us go on $8500.00 worth of fines for not having declared repairs carried out in the USA.
Each false declaration is worth up to a $1500.00 fine.
Make sure your drivers get a customs stamp on any repair carried out outside of Canada, even if it was for a flat tire or an oil change!!!
We were audited by IFTA maybe 4 years back.
The reason being that a carrier we worked for quite a bit was audited themselves.
The fellow spent 2 1/2 weeks at the office. He went through everything with a fine tooth comb.
He was quite pleasant. This was his 1st very big audit, we had 3 trucks at the time but ran most of the lower 48, it was lots of work he said.
Much more than an outfit with several hundred trucks doing intra provincial.
The trick is to be helpful and answer the questions as directly as possible.
Our fuel tax numbers were all off because I had jerry rigged a program on EXCEL that was pretty complicated.
In the end we had to pay out the hefty sum of $120.00 and promise to use a fuel tax program.
The auditor came back 90 days later to check up on us and to hand over his report.
We have been using Wolfbyte since then and it is practically impossible to mess up. This gives you real insight into your operating costs and what the real price of fuel is.
We just got audited by Canada Customs before Christmas. That was real bizzare. I could not figure out what they were looking for.
This fellow spent 7 days going over every ltl shipment we made coming into the country over the last 18 months. His concern was making sure the freight was cleared. Why on earth we would not clear somthing is beyond me!!
The only other thing he asked for was the purchase contracts for all our equipment and the repair bills for all the equipment within the last year.
In the case of the repairs the auditor saw good faith and let us go on $8500.00 worth of fines for not having declared repairs carried out in the USA.
Each false declaration is worth up to a $1500.00 fine.
Make sure your drivers get a customs stamp on any repair carried out outside of Canada, even if it was for a flat tire or an oil change!!!
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10
Ifta
An IFTA audit shouldn't be a thing to fear at all. Most audits as long as the carrier is doing their due diligence should be no fines or penalties. That is as long as the carrier or service provider they use is doing things correctly.
This is one of the biggest problems we see lately.
IFTA and Duty Free Fuel
An IFTA audit shouldn't be a thing to fear at all. Most audits as long as the carrier is doing their due diligence should be no fines or penalties. That is as long as the carrier or service provider they use is doing things correctly.
This is one of the biggest problems we see lately.
IFTA and Duty Free Fuel
Last edited by a moderator:
10
PSTC, great article. That took me back to 25 years ago when I bought "reserve fuel" like it was candy...because of pricing. The carrier I was leased to paid all the fuel tax etc and was truly ignorant to what was going on. NY came and did a fuel tax audit (pre-IFTA days) and they left with a HUGE cheque.
10
Thanks! That is my co-worker who wrote that but she is the fuel tax guru around here.
We still see if a fair amount both reserve and duty free fuel as well as Oregon fuel.
Remember, do your homework, its not the price on the pump that you should be worried about, but the taxes that you pay.
Balancing those taxes is what IFTA is all about.
10
Wolfbyte
Great software.
You download over the internet. Every trimester, you get billed $52.00 for a license.
The program is fool proof, in essence it will not let you make a mistake.
You simply have to transfer the raw data from your drivers trip sheets ( mileages and fuel bills. ) into the program.
You set up each tractor separately, so you can follow the performance of each tractor.
When you print out the reports , if you do not identify the tractor you get the combined report.
It is a bit boring entering the data, but you really grasp what your fuel purchase is doing.
Great software.
You download over the internet. Every trimester, you get billed $52.00 for a license.
The program is fool proof, in essence it will not let you make a mistake.
You simply have to transfer the raw data from your drivers trip sheets ( mileages and fuel bills. ) into the program.
You set up each tractor separately, so you can follow the performance of each tractor.
When you print out the reports , if you do not identify the tractor you get the combined report.
It is a bit boring entering the data, but you really grasp what your fuel purchase is doing.
10
Interesting information
A good many years ago, while working for another firm , we went through an IFTA audit.
We ended up getting a several thousand dollar fine because we were basing the Fuel tax report on a PC miler printout of where the driver went. In essence the raw data did not come off of the drivers trip sheet, it was produced in office based on PCmiler.
The PCmiler based reports were deemed not accurate and not accepted by the Auditors.
The simple reason was that you could not tell if a driver deviated from the suggested route. An example being a driver that drove around the truckstop several times looking for a parking spot , after having taken the wrong exit.
This was in the late 90's , I am not sure if that has changed!!!
A good many years ago, while working for another firm , we went through an IFTA audit.
We ended up getting a several thousand dollar fine because we were basing the Fuel tax report on a PC miler printout of where the driver went. In essence the raw data did not come off of the drivers trip sheet, it was produced in office based on PCmiler.
The PCmiler based reports were deemed not accurate and not accepted by the Auditors.
The simple reason was that you could not tell if a driver deviated from the suggested route. An example being a driver that drove around the truckstop several times looking for a parking spot , after having taken the wrong exit.
This was in the late 90's , I am not sure if that has changed!!!
10
10
The best practice is to ensure your drivers are using true odometer readings for each jurisdiction. This makes it fool proof then the auditers do come.
We see all kinds, from zip code, to blank sheets with Toronto to Savanah, GA with nothing in between. Now you can build a trip, but the auditors do not in one second like it and work harder to find out if you are actually trying to hide something.
Complete trip reports with all fuel, tolls, etc is the most effective way of ensuring that the information is correct.
Last client who thought they could artificially inflate their KPL walled away with a 35000.00 fine. This is for 10 truck fleet.
We see all kinds, from zip code, to blank sheets with Toronto to Savanah, GA with nothing in between. Now you can build a trip, but the auditors do not in one second like it and work harder to find out if you are actually trying to hide something.
Complete trip reports with all fuel, tolls, etc is the most effective way of ensuring that the information is correct.
Last client who thought they could artificially inflate their KPL walled away with a 35000.00 fine. This is for 10 truck fleet.
20
We just went through an IFTA audit. The auditor sent us his preliminary findings and assessment but told us a final notice of assessment would be sent to us after the entire review process had been completed. That was at the end of January and we haven't heard a peep from anyone since. Yesterday, we get a letter in the mail informing us our account is now in collections and we owe the ministry X amount of dollars ASAP! Is this standard procedure after an audit? No notice of assessment, just BLAM! you owe us money..... Apparently they also have a 30 day objection option but it is kind of hard to object when no assessment has been provided! WOW!
30
I guess the collection letter you got was their idea of a final notice of assessment. You can be 100% sure that no one in that office gives a shit.. that's why these things happen.
20
I agree! The auditor was a nice man, but frankly he did not know much about the process and he was unable to answer most of my questions even though the letters we received during the audit process instructed us to ask our auditor if we had any questions! HA! He kept telling me that "he will get someone to call me back with an answer to my question". In all fairness, someone DID call us back but still.........