1. Important changes to Tobacco Tax Reporting for TOBACCO MANUFACTURERS

2. how to use this document The following document outlines key changes to the way in which you report your Tobacco Tax Return. For your convenience, hyperlinks have been inserted throughout the document which will allow you to navigate quickly to those topics that are of greatest interest to you. To ensure that these changes to your Tobacco Tax Return minimize disruption to you or your business, we urge you to read its entire contents. Should you require additional information, please read the remainder of the Client Readiness Kit. For personal assistance, please click here. Our Revenue Division staff would be happy to assist you.click here

3. what’s changing ? the look of your Tobacco Tax Return and Tobacco Tax Memo Transactions template there are new information requirements how you obtain and file your Tobacco Tax Return and Tobacco Tax Memo Transactions report 1 2 3 Why have we made these changes ? (Click here) As part of our ongoing commitment to client service excellence, the Ministry of Finance will be implementing a new tax administration system that will create opportunities for improving the way in which your monthly taxes are reported and processed. As of November 30 th, 2016: o Your tax return will be redesigned to allow for greater standardization across tax programs as well as promote ease of use o Your tax return and schedules will now be filed together, as one “all- inclusive” document o Tax documents will be obtained and filed electronically, minimizing delivery and processing delays. We believe that these changes will not only enhance your tax filing experience but will improve the accuracy of tax information that is collected, enhance efficiency, and greatly improve our ability to serve you.

4. the look of your Tobacco tax documents The look of your Tobacco Tax documents has changed; but the information you are required to report essentially remains unchanged. tobacco tax memo transactions The Tobacco Tax Memo Transactions template that you file the 7 th day of each month has been redesigned. For those manufacturers who currently sell tobacco products in Alberta, you will see that the new template resembles that which is now being used by the Government of Alberta. Effective November 30 th all Tobacco Manufacturers will be required to use the new Tax Memo Transactions template. This move to standardization will allow for more efficient data processing and, in turn, improve our ability to serve you. For a closer look at the new Tobacco Tax Memo Transactions template, be sure to test-drive the SAMPLE that appears in the Client Readiness Kit for Tobacco Manufacturers. 1

5. the look 1 The information you enter on the Tax Schedules automatically copies into the new Tobacco Tax Return. of your Tobacco tax documents tobacco tax return At first glance, it may seem complicated; but in truth, we’ve simply standardized how your monthly tobacco taxes are reported. In fact, we think that filling out your Tobacco Tax Return will be easier since: o Everything you need is conveniently located in one downloadable file: the Tobacco Tax Return, Tobacco Tax Schedules and the instruction guide. All you need to do is complete the Tax Schedules that apply to your business. o Shaded (green) areas of the tax return automatically fill in as you complete each Tax Schedule when completed in MS Excel. Only the areas in white require you to enter data. For a closer look at the new Tobacco Tax Return, be sure to test-drive the SAMPLE that appears in the Client Readiness Kit for Tobacco Manufacturers.

6. information requirements Effective November 30 th, the following “new information” will be required: 1. Federal Business Number The Federal Business Number (BN) is a nine digit business identifier assigned by the Canada Revenue Agency (CRA). The Ministry of Finance has partnered with the Canada Revenue Agency to adopt the Federal Business Number (BN) as its new standard for client identification and communications. As a result, you can simplify your business dealings by using the BN to communicate with several levels of government. The concept of "One Business, One Number" has been adopted in several other provinces. Use of the BN will allow the Ministry of Finance to more efficiently identify your business as well as all of its associated accounts. Should you wish, you can continue to use your SK Tobacco Tax Account Number when communicating with the Ministry of Finance. Your SK Tobacco Tax Account Number will remain on file. 2.Inventory Reporting In the future, you will have the option to report opening and closing untaxed inventories directly onto your Tobacco Tax Return. Reporting this information will: o Support tax accounting o Allow you to pay the tobacco tax when the tobacco products enter the province; and o Assist in documenting adjustments. The Federal BN does not replace your SK Tobacco Tax Account Number! __________ 2 new NEW! The Federal BN: One Business; One Number. ___________ Inventory Reporting

7. getting 3 Your Tobacco Tax Documents Effective November 30 th, 2016 your Tobacco Tax Return will no longer be mailed to you. In its place, you will be mailed (or emailed) a Notice to File that will include a link to the Saskatchewan Electronic Tax Services (SETS) so that you can easily and conveniently download your Tobacco Tax Return (as well as your Tobacco Tax Transactions template) for future use. As a result, all Tobacco Tax Clients will need to register with SETS if they haven’t done so previously. SETS can be accessed directly from the Ministry of Finance website in two places (as shown in red). Please see the SETS Registration Guide included in your Client Readiness Kit for complete registration instructions. NEW! Registration with SETS is now required.

8. getting 3 Your Tobacco Tax Documents Once you are registered on SETS, getting your Tobacco Tax Return and Tax Memo Transactions template is as easy as 1-2-3! 1.Log into your SETS account using your Ministry-issued login ID and password. 2.Choose your tax type (i.e., Tobacco). 3.Select “Download your Tobacco Tax Return and Schedules” or “Download your Tax Memo Transactions template” from the list of available options! Downloading these tax documents is a “one-time” request. Simply save them to your desktop for future monthly use. Getting your Tobacco Tax documents from SETS is as easy as 1-2-3! _____________ Test-drive SETS this Summer!

9. filing 3 Your Tobacco Tax Documents Uploading your Tobacco Tax Memo Transactions and your Tobacco Tax Return via SETS is as easy as they were to download! Simply follow the same steps as were required to obtain these documents from SETS; but instead of choosing “download”, you will select “upload”. SETS Level 2 Registrants can file their tax returns; whereas SETS Level 3 Registrants can file their tax returns and pay their taxes. As before, Tobacco Tax Memo Transactions are due the 7 th of each month and Tobacco Tax Returns are due the 20 th of each month. Filing deadlines remain unchanged: 7 th of each month – Tobacco Tax Memo Transactions are due 20 th of each month – Tobacco Tax Returns are due

10. “must-do’s” 4

11. getting help 5 If, at any time, you would like assistance with any of the changes described here, please do not hesitate to contact either of the following Revenue Division staff members: Zeljko Ruzic Tobacco Tax Support Tel: 306-787-7685 Toll Free:1-800-667-6102 Ext. 7685 Email: zeljko.ruzic@gov.sk.cazeljko.ruzic@gov.sk.ca Craig Lyon Tobacco Tax Support Tel: 306-787-6616 Toll Free:1-800-667-6102 Ext. 6616 Email: craig.lyon@gov.sk.cacraig.lyon@gov.sk.ca

12. in summary the look of your Tobacco tax documents will change; but the information you report will not you may be required to provide new information how you obtain and file your Tobacco Tax documents will change there are actions for you to take we are here to help 1 2 3 4 5