The amendments include clear and specific definitions for these three unique occupations; extension of the revenue tax refund period from four to five years; and the creation or updating of unique lists of goods exempt from revenue tax for each occupation.

An amendment to clause 12(8)(d) of the Revenue Tax Act Regulations changes the time period from four years to five years over which a claim for a tax refund can be made, allowing more time for the operation to meet income requirements necessary to qualify for refunds and exemptions.

"Discussions with blueberry and cranberry growers questioning the rules and procedures to obtain exempt farm status for revenue (sales) tax have prompted this revision. Up until now, a producer had a four-year time frame to apply for a refund once the producer could show that 25 percent of gross annual income came from the farm operation. The amendment recognizes that up to five years may be required to derive income from blueberry and cranberry farms," said Minister Pat Mella. "To be consistent in our application, the five-year refund period is also extended to commercial fishers and aquaculturists when seeking refunds of tax paid on the purchase of goods used in their occupation," she said.

Persons starting up a farming, commercial fishing or aquaculture operation, must pay the revenue (sales) tax on the purchase of goods to be used in their operation; and when the person earns the required 25 percent of gross annual income, he or she may apply for a tax-exempt permit and a refund of the taxes paid.

On approval of the application, a marked gasoline or marked diesel permit is issued and the applicant may then purchase the eligible goods, exempt of revenue tax, as listed in the Revenue Tax Act Regulations. An amendment to the Gasoline Tax Act Regulations will now allow a farmer, fisherman or aquaculturist to obtain a "fuel only" permit to purchase marked tax-exempt fuel for their operations while they are waiting to qualify for the revenue (sales) tax exemption.

A comprehensive plan to communicate the regulation amendments is currently underway. Revenue Tax Guides and Tax Information Booklets will be mailed directly to registered fishers, farmers and aquaculturists in PEI. The various professional associations and affiliates will also be sent copies of the amendment information. For copies of the amendments, contact Mr. Chuck Hickey, Taxation and Property Records, Provincial Treasury, tel: 368-4171.