Overview
Canadian Tax Allocation for Complex Loads
The allocation of taxable freight charges for multi-stop loads can be a complex process. The TMS allocates based on the following:
If Stop-level Cumulative Miles is Available, use the To Stop Cumulative Miles minus the From Stop Cumulative Miles. Multiply that value with the Weight Delivered.
If Stop-level Cumulative Miles are NOT available, use the Weight Delivered.
As a formula:
If Stop-level Cumulative Miles is Available, use
[Weight Delivered x (To Stop Cumulative Miles – From Stop Cumulative Miles)]
Else, use
[Weight Delivered]
In other words, the allocation of taxable freight charges for a stop is based on (1) weight x distance or (2) weight only.
For example:
Stop | Type | Weight Delivered | Cumulative Distance | Allocation Percent |
|---|---|---|---|---|
1 | Pickup | N/A | 0 miles | 0% |
2 | Delivery | 1000 lbs | 100 miles | 25% |
3 | Delivery | 1000 lbs | 300 miles | 75% |
Stop | Type | Weight Delivered | Cumulative Distance | Allocation Percent |
|---|---|---|---|---|
1 | Pickup | N/A | N/A | 0% |
2 | Delivery | 1000 lbs | N/A | 50% |
3 | Delivery | 1000 lbs | N/A | 50% |