ET/SL 39

December 4, 2000

Wholesalers applying for a wholesaler's licence under the Excise Tax Act (ETA) are required to provide the Agency with acceptable security to ensure that they will keep adequate books and records, submit true returns of sales as required, and pay excise tax on those sales. This requirement is elaborated upon in ETSL Memorandum 2.3, entitled Bonds Given as Security by Licensed Wholesalers.

The maintenance of this security has always been a TIS responsibility. In an effort to centralize filing and maintenance, all licensed wholesalers' applications (L15s and L16s) and excise tax bonds will be transferred to the Summerside Tax Centre (STC). Please forward all L15s, L16s and excise tax bonds in your region to the ECS Unit of the STC at the following address:

ECS Accounting
Summerside Tax Centre
Suite 101, 275 Pope Road
Summerside, PEI
C1N 5Z7

With your cooperation, it is anticipated that the transfer can be completed prior to May 31, 2001. Please forward all L15s, L16s and bonds to the ECS Unit during the month of May 2001 only. Do not send partial groupings. It is recommended that secure shipping methods be used.

The STC will be responsible for control and maintenance of these bonds and for conducting the annual bond review exercise starting in 2002. Tax services offices will only need to become involved in the bond review exercise if a difficulty arises when obtaining an amended bond.

Should you have any questions about this process, feel free to call Michael Moskovic of the Excise and GST/HST Rulings Directorate at (613) 957-9877. Questions concerning specific accounts can be directed to the ECS Unit at (877) 432-5472.