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Revenue Tax (PST) Objection and Appeals

 

Transition to the Harmonized Sales Tax (HST)

Effective April 1, 2013, the Province of Prince Edward Island will implement the harmonized sales tax (HST).  HST will replace the current provincial sales tax (PST @ 10%) and the federal Goods and Services Tax (GST @ 5%).

Under HST, the provincial portion will be nine percent (9%) and the federal portion will be five percent (5%) for a combined rate of 14%.  

Please refer to the Canada Revenue Agency website for assistance with the application of HST in Prince Edward Island, or call 1-800-959-5525.

 

At the completion of a revenue tax audit, carried out under the Revenue Administration Act, the taxpayer will receive a Notice of Assessment setting out the results of the audit.


Objection

If the taxpayer disagrees with the results of the audit, the taxpayer may file a Notice of Objection with the Provincial Tax Commissioner. The Notice of Objection must

  • be in writing;

  • be delivered to the office of the Provincial Tax Commissioner, or sent by registered mail addressed to the Provincial Tax Commissioner, within 60 days of the date of the Notice of Assessment;

  • set out the reasons for the objection together with all relevant facts.


The Provincial Tax Commissioner must, within 60 days of receipt of the objection, reconsider the assessment, and reverse, confirm or adjust the amount assessed. The decision will be communicated to the taxpayer by registered mail.


Appeal

If the taxpayer disagrees with the Provincial Tax Commissioner’s decision, the taxpayer may file a Notice of Appeal with the Island Regulatory and Appeals Commission (IRAC). This appeal must

  • be in writing;

  • be delivered to the office of IRAC, or sent by registered mail addressed to IRAC, within 30 days of the date of the Provincial Tax Commissioner’s decision on the objection;

  • set out the grounds for the appeal and briefly state the relevant facts.

The grounds for an appeal are limited to those raised in the Notice of Objection, and no grounds shall be considered by IRAC other than the grounds of appeal set out in the Notice of Appeal.

On the hearing of the appeal, both the appellant taxpayer and the Provincial Tax Commissioner are entitled to appear and be heard, and to submit further evidence.

IRAC will decide the appeal by affirming, varying or reversing the decision of the Provincial Tax Commissioner, and will notify the appellant taxpayer of the appeal decision by registered mail.


Liability for Payment

Taxpayers are advised that neither the filing of a Notice of Objection or a Notice of Appeal, nor any delay in the hearing of an appeal, shall affect the due date, interest or penalties, or liability for payment of any amount due and payable to the Government that is the subject matter of the objection or appeal. In the event that the assessment is reduced or reversed as a result of an objection or appeal, the excess amount paid to the Government will be refunded to the taxpayer along with any additional interest or penalty paid thereon.

For information on your rights and obligations in relation to objections and appeals, please refer to Sections 9, 10 and 12 of the Revenue Administration Act.


Please note:
This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.


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