1. Managed by the International Fuel Tax Association, Inc. Multiple Interest Rate Calculations How it’s done in Canada

2. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest R1230.200 Canadian Jurisdiction Interest Rate For a fleet based in a Canadian jurisdiction, interest shall accrue at a rate equal to the Canadian Federal Treasury Bill rate plus two percent and adjusted every calendar quarter.

3. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest What about….. Which T-Bill rate What period to use as a basis What about “rounding”

4. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest A recent survey of Canadian Jurisdictions showed that all those who responded have adopted a model that is very similar to a process used by the Canadian Federal government. “The rate for a particular quarter is the average yield of 90 day Federal Treasury Bills sold at weekly auction during the first month of the quarter preceding the particular quarter, rounded to the next higher full percentage, add 2%.”

5. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest Jan April July Avg. of 90 day T- bills FebMarch Avg. of 90 day T- bills May June Avg. of 90 day T-bills August Sept

6. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest The survey also showed that the rates currently used by Canadian jurisdictions are quite consistent across the board. While this is comforting there is no language to ensure that this will carry on and there is some room for variance.

7. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest Applying the Interest rate R1230.300 Computation of Interest.005 Tax Returns Interest due from a tax return shall be calculated separately for each jurisdiction from the date tax was due for each month of fraction thereof until paid. A full month’s interest shall accrue for any portion of a month on which tax owed remains unpaid.

8. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest Applying the Interest rate Whenever an original return, an amended return or an audited return is filed after the due date, we are required to apply interest for each month [using the appropriate rate]. For Canadians this would involve applying a specific rate for a particular month within a particular quarter.

9. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest Applying the Interest rate JURDISTANCEFUELTAX DUEEFF MTHSAnnual RATEMonthly RATE# of MTHS INTEREST AB9,2333,361-110.610 SK5,3220184.35Nov7– Mar87.00%0.5833%55.38 Apr8 – Sep86.00%0.5000%65.53 Oct8 - Mar95.00%0.4167%64.61 Apr9 – Jun94.00%0.3333%31.84 Jul9-May103.00%0.2500%115.07 14,5553,36173.743122.43

10. Managed by the International Fuel Tax Association, Inc. Canadian Jurisdictional Interest SK’s system uses a table to which we post the interest rate for each quarterly return period. When a transaction calls for interest, the system refers to the table for determining which interest rate is applicable based on the quarter. Managing the Interest Rates

11. Managed by the International Fuel Tax Association, Inc.