New Jersey CBT Tax Compliance Option for Carriers Extended to Jan. 30

CTA was able to once again negotiate an extension with the state of New Jersey over the voluntary disclosure program for Canadian carriers to voluntarily register their business and file appropriate taxes. The original allowance, which was originally set to conclude in December, and later on Jan. 15,  is extended again until Jan. 30.

As OTA reported in late October, New Jersey has been seizing commercial vehicles for “failure to pay the state Corporate Business Tax (CBT).” The tax is applied to all trucking companies making any pickups or delivery in the state regardless if they have a terminal in the US or not.

Just as CTA did in 2003 when this became an issue in 2003, the Alliance reached out to the state to seek a voluntary compliance arrangement, which was reached with the NJ Division of Taxation.

For the CTA members, the benefit of taking part in this program is that the carrier will be eligible for the favorable terms that are offered under the Voluntary Disclosure Program. These include relief from the Late Filing and Late Payment Penalties as well as a general look-back period of four years (three prior years and the current year). The program also provides that no enforcement action will be taken by NJ investigators should the tax payer be uncovered while conducting compliance initiatives at weigh stations or checkpoints .

The general guidelines to be eligible for the Voluntary Disclosure Program are:

  1. No previous contact with the Taxpayer by the Division or any of its Agents;
  2. Taxpayer is not registered for the taxes they wish to come forward on;
  3. Taxpayer is not currently under any criminal investigation.
  4. Taxpayer must be willing to pay outstanding tax liabilities and file the prior year returns within a reasonable period.

To obtain the instructions to participate in this CTA-NJ voluntary disclosure program, OTA members can contact Jonathan.Blackham@184.107.41.74. For more information on the tax click here.

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