Managed by the International Fuel Tax Association, Inc.

Carrier submits license application to base jurisdiction 1 Base jurisdiction reviews and processes license application of qualified candidate 2 Base jurisdiction issues one IFTA license to carrier and 2 decals for each QMV operated 3 Licensee operates and prepares quarterly IFTA tax return with base jurisdiction 4 Managed by the International Fuel Tax Association, Inc.

Base Jurisdiction (BJ) is a US jurisdiction

Licensee files tax return with base jurisdiction and remits $ Base jurisdiction reviews and processes tax return and remittance 6 Base jurisdiction processes all other tax returns received 7 At the end of each month base jurisdiction uploads to the CH or sends transmittal reports to all other member jurisdictions. 8 Managed by the International Fuel Tax Association, Inc.

TRANSMITTAL REPORT 05/2200 Managed by the International Fuel Tax Association, Inc.

Base jurisdiction uploads or sends the transmittal report to Jurisdiction AA and all other member jurisdictions 9 Base jurisdiction processes all transmittal reports and payments received from other jurisdictions (including $375 from Jurisdiction AA) 10 Base jurisdiction sends refunds to licensees and issues assessments for any taxes due 11 Managed by the International Fuel Tax Association, Inc.

The base jurisdiction will conduct audits for itself and all member jurisdictions Jurisdictions must complete audits on an average of 3% of its licensees each year Of the 3%, 25% of the audits must involve high- distance accounts Of the 3%, 15% of the audits must involve low- distance accounts Audit monies are transmitted with the monthly transmittal reports; audit reports are sent upon completion Managed by the International Fuel Tax Association, Inc.