Effective: April 1, 2016
Section: Revenue Cycle
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies

POLICY 

Debts and obligations owed to a government or public agency may be forgiven, in whole or in part, by the Financial Management Board (FMB), or by a public officer delegated by the FMB, after all reasonable efforts have been made to collect the amounts owing, and the circumstances justify seeking forgiveness or remission.

Remission of a tax or penalty may be remitted by the Commissioner, on the recommendation of the Executive Council, after all reasonable efforts have been made to collect the taxes or penalties owing.  Remission may be total, partial, and be conditional or unconditional.

Remission of a student loan, in whole or in part, may be granted by the Commissioner, on the recommendation of the Minister of Education, Culture and Employment, after all reasonable efforts have been made to collect the amounts owing.

PURPOSE

To ensure that guidance is provided on the forgiveness or remission of debt, and that forgiveness or remission of debt is requested as a last resort.

SCOPE

This policy applies to forgiveness and remission of debts payable to the GNWT or a Public Agency.

RESPONSIBILITIES

Deputy Head

Ensure that all reasonable and appropriate action has been taken to collect debts or obligations owed to the GNWT or a Public Agency.

Comptroller General

Review and approve recommendations for forgiveness of debt before submission to the FMB; may approve Interpretation Bulletins associated with this policy.

Financial Management Board

May issue a directive respecting the financial management or financial administration of a Public Agency.

Commissioner of the Northwest Territories

On the recommendation of the Executive Council, may grant a remission of any tax or penalty paid or payable to the GNWT or to a Public Agency; on the recommendation of the Minister of Education, Culture and Employment, may remit all or part of a student loan.

AUTHORITIES and REFERENCES

• Financial Administration Act (FAA)
  • s. 10 – Board directives
  • s. 62 – Forgiveness of Debts and Obligations
  • s. 63 – Remission of Tax or Penalty
  • s. 64 – Comptroller General record
  • s. 65 – Information in public accounts
  • s. 69- Compromise Agreement
• Student Financial Assistance Act (SFA)
  • s.12 – Remittance
• Delegation of Authority Regulations

INTERPRETATION BULLETINS