The implementation of the recommendations in this report will improve management controls over certain expenditures incurred by the Toronto Emergency Medical Services Division.
Our review identified that Provincial Sales Tax has been paid on certain expenditures which are sales tax exempt. It is estimated that an amount of $60,000 is recoverable from the Province of Ontario for sales tax overpayments extending back for four years (2001 to 2004). Any sales tax, which may have been overpaid prior to 2001, is non-recoverable because the Provincial Retail Sales Tax Act requires that refund applications must be received by the Province within four years from the date the tax was paid. It is also estimated that future annual savings from
avoiding future tax overpayments would be approximately $15,000.
As a result of our review of Provincial Sales Tax issues at the Toronto Emergency Medical Services, we requested staff to review similar tax exempt areas at the Toronto Fire Services Division. This review also identified that Provincial Sales Tax has been paid on certain expenditures which are sales tax exempt. It is estimated that an amount of $66,000 is recoverable from the Province of Ontario for sales tax overpayments extending back for four
years (2001 to 2004). Any sales tax, which may have been overpaid prior to 2001, is nonrecoverable because the Provincial Retail Sales Tax Act requires that refund applications must be received by the Province within four years from the date the tax was paid. It is also estimated that future annual savings from avoiding future tax overpayments would be approximately $16,000.
In addition, we have communicated with the Chief Financial Officer and Treasurer in relation to Provincial Sales Tax issues which may exist in other areas throughout the City. This matter is currently being addressed by the Chief Financial Officer and Treasurer.
Further, we have identified opportunities for cost savings relating to the potential reduction of certain expenditures incurred by the Toronto Emergency Medical Services Division. The exact amount of the savings will be determined following more detailed reviews and analyses by staff.