The 3 C’s: What to Tell Your Accountant About IRP

truck

Vehicle registration fees are a cost of doing business. But its a cost you can manage when you join a prorate program. If you need a reminder why you should keep your accountant in the loop when register vehicles under the International Registration Plan (IRP), remember these three Cs:

1. Costs

If youre not currently part of a prorate program and you operate outside your home jurisdiction, youre probably spending big money on single-trip permits (not to mention increasing your exposure to other vehicle-related taxes). These costs go away when you register your vehicles under IRP.

2. Cash

A lot of small carriers in places with staggered registration are able to license trucks at the end of every month, but IRP is an annual plan and jurisdictions want their money at the start of the registration year. All of your cash has to come out at one time. Some jurisdictions will allow you to defer payment, but at a cost: Ontario, for example, will let you defer your Ontario portionwith interest.

3. Currency

IRP is an international plan. As such, there are U.S. and Canadian currencies involved.

You have to use U.S. funds to pay fees for your portion of travel the United States. If 50% of your miles are south of the border, 50% of your fees will be in U.S. dollars. That can hurt your bottom line if you’re not prepared.

Leave a Reply

Mailing Address
Box 65080 RPO North Hill
Calgary, AB T2N 4T6

Street Address
200, 2819 Centre St. NW
Calgary, AB T2E 2V7

Toll Free: 1.877.860.8025
Phone: 403.220.9829
Fax: 403.220.0603
info@northstarfleet.com

Follow us on