Monday, July 27th24.1°C
27122
26827

Ontario to write off at least $1.4B

Ontario's cash-strapped government plans to write off at least $1.4 billion in unpaid taxes because it failed to act promptly and lacked the manpower to collect them, auditor general Jim McCarter found in his annual report.

The province, which is facing a $14.4-billion deficit, is owed about $2.4 billion in taxes, mostly from businesses, the report found. But it isn't doing enough to collect them.

About three-quarters of Ontario's tax collectors were transferred to the federal tax agency after the governing Liberals brought in the harmonized sales tax in July, 2010. At the time, the Liberals boasted that the move would reduce their spending by taking public servants off their payroll.

But it also hindered the province's ability to collect billions in back taxes, with some collectors seeing their workload double or even triple.

It took collectors an average of seven months to even attempt to contact a taxpayer by phone, and in two-thirds of cases there was at least one six-month gap where no action was taken, the auditor found. Field visits weren't made, and liens and warrants for the seizure and sale of properties weren't enforced.

"Taking prompt action is vital to collecting debts," McCarter said in a release. "Research shows that the probability of collecting money that's owed drops dramatically as time passes."

The $1.4 billion is mainly made up of older accounts that have accumulated over years, the report said.

The Canadian Press


Read more Business News

26744


Recent Trending




Today's Market
S&P TSX14001.37-184.87
S&P CDNX581.71-10.78
DJIA17440.59-127.94
Nasdaq5039.78-48.85
S&P 5002067.64-12.01
CDN Dollar0.7671+0.0003
Gold1093.90+8.30
Oil47.55-0.30
Lumber258.10+0.40
Natural Gas2.787-0.002

 
Okanagan Companies
Pacific Safety0.18-0.01
Knighthawk0.010.00
QHR Technologies Inc1.36-0.04
Cantex0.05+0.00
Anavex Life Sciences0.91+0.13
Metalex Ventures0.06-0.01
Russel Metals19.45-1.73
Copper Mountain Mining0.80-0.03
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.01
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.70-0.05

 





FEATURED Property
21600292455 Arthur Court
10091783 bedrooms
$379,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



27114




Member of BC Press Council