IFTA Attorneys’ Section Steering Committee Update presented by Jack Frehafer (PA) Annual IFTA Business Meeting July 18-19, 2012 Grand Rapids, MI

ASSC Members Clark Snelson (UT) - Chair Collin Davis (IN)- Vice Chair (Tentative) Carolee Johnstone – (CA) Ex Officio Jack Frehafer (PA) Mark Osbaldeston (ON) Brock Cole (VA) John Schulz (KS) Janice Davidson (NC)

ASSC Board Liaisons Sheila Rowen (TN) Stuart Zion (CO) ASSC IFTA, Inc. Advisors Lonette L. Turner Debora K. Meise Tammy Trinker

2011/2012 Activities Quarterly teleconferences Review of proposed ballots Discussed Litigation support Re-Audit and Re-Examination Working Group Provided IFTA Committee Chairs Guide feedback Discussions on hosting Webinars Newsletter in developmental stage

Need Help or Guidance on an IFTA Issue? Brock Cole – VA, AR, KY, LA, TN, WV Janice Davidson – NC, AL, FL, GA, MS, SC Collin Davis – IN, IL, IA, MI, MO, WI Jack Frehafer – PA, DE, MD, NJ, NY, OH Carolee Johnstone – CA, ID, MT, NV, OR, WA Mark Osbaldeston – ON, AB, BC, MB, NB, NL, NS, PE, QC, SK John Shultz – KS, MN, NE, ND, OK, SD Clark Snelson – UT, AZ, CO, NM, TX, WY [Open] – CT, MA, ME, NH, RI, VT

R&R Express v. Commonwealth of Pennsylvania Summary of the case Facts Audit findings Audit determined liability Taxpayer appeals Administrative tribunals Commonwealth Court of PA

R&R Express v. Commonwealth of Pennsylvania PA and IFTA Law applicable to case Taxpayer Arguments Credit for Tax Paid Fuel Double Taxation Use of Post-Audit Period Data as substitute for actual period data

R&R Express v. Commonwealth of Pennsylvania “We cannot substitute our judgment about the matter for the clear terms of the Act, Agreement, and accompanying regulations and guidelines."

R&R Express v. Commonwealth of Pennsylvania “[W]e are faced with a [t]axpayer who has failed to comply with clear directives regarding documentation of business activities and due to that lack of documentation has failed to meet its burden of proving tax paid fuel use."

R & R Express v. Commonwealth of Pennsylvania “The relevant and controlling law explicitly requires documentation, not estimates of the sort proposed by Taxpayer, no matter how accurate we may believe such estimates to be, nor how sympathetic we may be to Taxpayer’s plight.”

Additional Attorneys Welcome Attorney participation encouraged! Contact Clark Snelson (UT) Colin Davis (IN) Jack Frehafer (PA)