IFTA ANNUAL BUSINESS MEETING JULY 20-21, 2007

1. IFTA ANNUAL BUSINESS MEETINGJULY 20-21, 2007 JURISDICTION ONLY SESSIONS AN AUDIT MANAGER’S PERSPECTIVE

2. JURISDICTION ONLY SESSIONS • What is the basis for these sessions? • Article R140 of the Agreement (“It is the purpose of this Agreement to enable participating jurisdictions to act cooperatively and provide mutual assistance in the administration and collection of motor fuels use taxes”) • Section A620 of the IFTA Audit Manual • A620.100 “Jurisdictions may contact each other prior to the audit to obtain pertinent information in accordance with each jurisdiction’s disclosure policy.” • A620.200 “Copies of correspondence between the licensee and member jurisdictions that have a bearing on a tax liability and special instructions that may affect the audit shall be forwarded to the base jurisdiction in accordance with each jurisdiction’s disclosure policy.”

3. JURISDICTION ONLY SESSIONS • What is the basis for these sessions? • Jurisdictional Statute (EXAMPLE) • Conn. Gen. Stat. §12-486.  Sec. 12-486. Inspection of books and records by the commissioner. Agreements with other jurisdictions for cooperative audits. International fuel tax agreement. Conn. Gen. Stat. §12-486(c)(2). In lieu of the requirements of this chapter with respect to licensing, bonding, reporting and auditing, the commissioner may enter into the International Fuel Tax Agreement or other cooperative agreements with another jurisdiction or other jurisdictions to permit base jurisdiction licensing of motor carriers who are liable for the tax imposed by this chapter and to provide for the cooperation and assistance among the jurisdictions that are parties to the agreement in the administration and collection of motor fuels taxes. No agreement, arrangement, declaration, or amendment to an agreement is effective until stated in writing and approved by the commissioner. If the commissioner enters into the International Fuel Tax Agreement or other cooperative agreement under this subsection, and if the provisions set forth in that agreement or other agreement are different from provisions prescribed by other sections of the general statutes, then the agreement provisions shall prevail.

4. JURISDICTION ONLY SESSIONS • What is the basis for these sessions? • Jurisdictional Statute • Conn. Gen. Stat. §12-486(c)(5). Notwithstanding any provision of the general statutes to the contrary, the commissioner may, as required by the terms of an agreement entered into under this subsection, forward to any official of another jurisdiction that is a party to the agreement any information in the possession of the department relative to the manufacture, receipt, sale, use, transportation or shipment of motor fuels by any person. The commissioner may disclose to any official of another jurisdiction that is a party to the agreement the location of offices, motor vehicles and other real and personal property of motor carriers.

5. JURISDICTION ONLY SESSIONS • What is the basis for these sessions? • Jurisdictional Statute • Do your statutes provide for the exchange of information?

6. JURISDICTION ONLY SESSIONS • The Auditing Community • Audit Managers • Audit Supervisors • Auditors

7. JURISDICTION ONLY SESSIONS • Purpose for holding these sessions: • To engage in direct discussions with audit peers on the following topics: • Administration of Agreement provisions • Administration of jurisdictional statutes, regulations • Discussion of audit scope and technique • Planning of joint audits • Discussion of specific audit cases • Meeting Program Compliance objectives

8. JURISDICTION ONLY SESSIONS • METHODS OF COMMUNICATIONS • Telephone contact or conference calls • E-mail • Fax • Snail mail • Meeting at the Audit Workshop

9. JURISDICTION ONLY SESSIONS • OTHER “JURISDICTION ONLY” FORUMS • FTA Motor Fuel Tax Section • FTA Motor Fuel Tax Section Task Forces • NESTOA • Multi-state Sales Tax Agreements • Note: The Audit Workshop is the only occasion where auditors, their supervisors, and their managers are all assembled in one place at one time. It is clearly the most convenient time to discuss audit related issues within a confidential environment.