FREDERICTON (GNB) – The provincial government is transitioning from issuing fines to applying administrative penalties for infractions under the Gasoline and Motive Fuel Tax Act and the Tobacco Tax Act. This is being done to improve compliance with provincial legislation and recover more unpaid fines.

Finance Minister Blaine Higgs introduced legislation in the legislative assembly today to implement the measures.

“Fines levied under these two acts have not proven to be an effective tool to increase compliance,” said Higgs. “The use of administrative penalties as an alternative to fines allows us to increase compliance without further burdening an already busy court system. As we work to rebuild our province's finances, this initiative will also result in increased efficiencies and will allow auditors and other staff to do more productive work.”

Existing legislation provides for fines to be issued by the Department of Finance when individuals or businesses fail to comply. When they are not paid voluntarily by an individual or business, charges must be filed through the court system at a high cost to both the defendant and the department.

“Currently, less than 60 per cent of fines issued by the department are paid,” said Higgs.
 
Administrative penalties are designed to provide a deterrent without invoking as costly a procedural mechanism as criminal law. Failure to pay an administrative penalty could result in the license or permit being revoked.

The majority of tobacco license holders, fuel license holders and IFTA (International Fuel Tax Agreement) carriers already comply with the legislated requirements of their respective licences and permits.

“Those who already comply are completely unaffected by these changes,” said Higgs. “For those who do not comply, the amounts they will be charged as administrative penalties will be the same as the amounts that would have been charged as fines. The difference is that failing to pay an administrative penalty could result in the license or permit being revoked.”

The amendments to the legislation include a process for review and appeal at no cost to the applicant. For more information, individuals or companies may contact the Department of Finance at 1-800-669-7070.


11-12-12