Sunday, November 10, 2013

Taxation of Insufficiently Paid Domestic Letter Mail : 1972 - 2014

[A note to readers: This is an ongoing collection with several "missing" charges.  Nevertheless sufficient material is available to illustrate this posting]

In 1875, the Canadian Post Office began the "double deficiency" system of  charging double the postage owing on letter mail received with insufficient postage. The double deficiency system remained in effect until 1985, when Canada Post Corporation introduced a new procedure in which the recipient could pay the amount owing plus an administrative charge. This post explains the double deficiency to 1985 and the administrative charge taxation procedures in effect from 1985 onward. 

Reference

Mike Street, a prolific and well-respected author, was the first philatelic researcher to explain the administrative charge system in articles published in Maple Leaves (2002) and BNA Topics (2004). This posting would not have been possible without Mr. Street's research efforts.


A. "Double Deficiency" Period : To August 31, 1985


8 cent letter rate period : January 1, 1972 - August 31, 1975


 
Vancouver to Kincardine
8 cent letter rate unpaid and taxed 16 cents
Postage due stamps affixed and cancelled August 8, 1975



Port Stanley to Aylmer West,  May 22, 1974
8 cents letter rate
U.S. stamp was invalid, thus an unpaid letter. Manuscript T/16 (16 cents)
Postage due stamp cancelled May 24, 1974



Winnipeg to London, October 2, 1974
14 cents 1-2 oz. letter rate
Shortpaid 6 cents and taxed 12 cents


10 cent rate period : September 1, 1975 - February 28, 1977




Ottawa to London, February 26, 1977
10 cents letter rate
Unpaid and taxed 20 cents


12 cents rate period: March 1, 1977 - March 31, 1978




Toronto to Newmarket, March 25, 1977
12 cents letter rate unpaid and taxed 24 cents


14 cents Rate Period : April 1, 1978 - March 31, 1979



Ottawa to Toronto, August 9, 1978
14 cents letter rate unpaid and taxed 28 cents


 17 cents rate period : April 1, 1979 - December 31, 1981




Chemainus to Toronto, August 14, 1981
17 cents letter rate unpaid and taxed 34 cents


 30 cents rate period : January 1, 1982 - February 14, 1983




Mississauga to Laprairie, January 16, 1983
30 cents letter rate unpaid and taxed 60 cents
Dues cancelled January 18, 1983


 32 cents rate period : February 15, 1983 - June 23, 1985




La Salle to Montreal (Montreal LPP handstamp February 7, 1985)
32 cents letter rate unpaid and taxed 64 cents



 


Amqui to Ville St-Laurrent, July 26, 1985
34 cents letter rate
Shortpaid 2 cents and taxed 4 cents



B. Administrative Charge Period : From September 1, 1985

In his search at the National Archives, Mr. Street found  Canada Post Corporation press release 8512 dated April 10, 1985, outlining the new procedures which were to take effect on September 1, 1985. According to the document,  if the sender could be identified, shortpaid mail would be returned to the sender for remailing with proper postage. If the sender could not be identified, the mail would be forwarded to the addressee. The addressee could refuse delivery or pay the amount owing plus a 25 cent administrative charge.

Mr. Street's research in the Postal Guides from 1985 to 2004 allowed him to produce a table showing the changes in the administrative charge over that period. (See Topics article, page 50) The initial 25 cents charge was increased to equal the domestic letter rates from 1987 to the end of 1993. From 1994 to the end of 1998, the charge, whose name was changed to "Deficient Postage Fee"  in 1998, was 1 or 2 cents more than the letter rates. Since January 1, 1999 (and at least to 2009), the fee has been equal to the letter rates.


1. Returned Insufficiently Paid Letters

Insufficiently paid letters were returned to the sender. Peelable labels were affixed explaining why the letter was returned and advising the sender to remove the label, add the missing postage and re-mail.

Unpaid letter, Ottawa 1985
Returned to sender for re-mailing




Unpaid letter from Brampton to Toronto
Label dated 6-86




2. Administrative Charge /Deficient Postage Fees


25 cents charge : September 1, 1985 - March 31, 1987

Umpaid



St-Eustache to  Ville St-Laurent, November 7, 1985
34 cents letter rate
Unpaid and taxed 59 cents : 34 cents deficiency + 25 cents administrative charge

(The amount due would have been 64 cents had the double deficiency system been in effect)



To Niagara Falls and taxed at Toronto South LPP April 4, 1986
34 cents letter rate
Unpaid and taxed 59 cents : 34 cents deficiency + 25 cents administrative charge


Shortpaid



Ste-Therese-de-Blainville to Scarborough, August 8, 1986
34 cents letter rate
Taxed 27 cents : 2 cents deficiency + 25 cents administrative charge
 (The amount due would have been 4 cents had the double deficiency system been in effect)


Forwarded as a Courtesy

Some shortpaid mail was forwarded to addressees  rather than returned to the sender for remailing without being taxed or charged the administrative fee. A "FORWARDED AS A COURTESY" handstamp was applied to indicate that Canada Post Corporation was not following its normal procedure. The courtesy was usually shown a short while after a rate change.

 


St-Augustin to Ville St-Laurent, October 17, 1985
34 cents letter rate
Shortpaid 2 cents and taxed 2 cent (no administrative charge) as a courtesy


Double Deficiency Taxation



St Isidore Dorchester to Ville St-Laurent, June 27, 1986
34 cents letter rate
Shortpaid 2 cents and incorrectly taxed 4 cents, double deficiency
Unfortunately, my  collection of shortpaid letters of the 1987 to 2001 period is embarrassingly barren. Things pick up a bit though from 2001 to 2007.

36 cents charge : April 1, 1987 - December 31, 1988


Thunder Bay to Niagara Falls, April 28, 1987
36 cents letter rate
Shortpaid 2 cents but "Forwarded As A Courtesy" - No taxation
The correct taxation would have been 38 cents : 2 cents shortpaid + 36 cents administrative charge


37 cents charge : January 1, 1988 - December 31, 1988

[Not Shown]
 


38 cents charge : January 1, 1989 - December 31, 1989

Winnipeg to Niagara Falls, January 1989
38 cents letter rate
Shortpaid 1 cent but "Forwarded As A Courtesy" - No taxation
The correct taxation would have been 39 cents : 1 cents shortpaid + 38 cents administrative charge

Double Deficiency


Carseland to Niagara Falls, January 10, 1989
38 cents letter rate
Shortpaid 1 cents and incorrectly taxed 2 cents, Double deficiency


39 cents charge :  January 1, 1990 - December 31, 1990

[Not Shown]

 40 cents charge : January 1, 1991 - December 31, 1991

Incorrect Administrative Charge


 


Sackville, April 26, 1991
Unpaid 40 cents letter rate
Correct taxation 80 cents : 40 cents deficiency + 40 cents administrative charge
This letter was incorrectly taxed 65 cents suggesting that the postal clerk incorrectly applied a 25 cents administrative charge : 40 cents single deficiency + 25 cents administrative charge (incorrect)



42 cents charge : January 1, 1992 - December 31, 1992
  
[Not Shown]

43 cents charge : January 1, 1993 -  December 31, 1993






Toronto to Oakville, October 19, 1993

Oversize letter rate 86 cents 

Shortpaid 43 cents and taxed 86 cents : 43 cents deficiency + 43 cents administrative charge




44 cents charge : January 1, 1994 - September 31, 1994

[Not Shown]

45 cents charge : October 1, 1994 -July 31, 1995


[Not shown]

46 cents charge : August 1, 1995 - December 31, 2000



 


Cancelled at Victoria ((V8Z 4B0) to Burnaby, November 6, 1996
45 cents letter rate unpaid and taxed 91 cents : 45 cents deficiency + 46 cents administrative charge


47 cents fee : January 1, 2001 - January 13, 2002


 



Winnipeg to Kanata ( No date)

47 cents letter rate unpaid and taxed 94 cents : 47 cents deficiency + 47 cents deficient postage fee


48 cents fee : January 14, 2002 - January 11, 2004







Edmonton to Kanata, December 18, 2002
48 cents letter rate unpaid
Taxed 96 cents : 48 cents deficiency + 48 cents deficient postage fee

2nd Weight Step Letter Rate : (greater than 30g, equal to or less than 50g)


 

Saskatoon to Calgary, February 22, 2002  
77 cents 2nd weight step rate 
Shortpaid 29 cents 
Taxed 77 cents : 29 cents deficiency + 48 cents deficient postage fee

 
 49 cents fee : January 12, 2004 - January 16, 2005



 




Edmonton to Montreal, November 22, 2004

49 cents letter rate unpaid

 Taxed 98 cents : 49 cents deficiency + 49 cents deficient postage fee


50 cents fee : January 17, 2005 - January 15, 2006






Edmonton to Montreal, February 23, 2005

50 cents letter rate unpaid
 Taxed $1.00 : 50 cents deficiency + 50 cents deficient postage fee



 




London to Ottawa, April 5, 2005

50 cents letter rate unpaid
 Taxed $1.00 : 50 cents deficiency + 50 cents deficient postage fee



Hamilton to Ottawa, October 1, 2005
50 cents letter rate
Shortpaid 49 cents and taxed 99 cents : 49 cents deficiency + 50 cents deficient postage fee


51 cents fee: January 16, 2006 - January 15, 2007


Rates:


The four tax markings shown below were applied to "Standard Letter" size covers, i.e Maximum 245mm x 150mm x 5mm.

89 cent Standard Letter rate : greater than 30g, equal to or less than 50g

 
August 29, 2006
89 cents letter rate
Shortpaid 48 cents and taxed 89 cents : 48 cents deficiency + 51 cents deficient postage fee

$1.05 Other Letter mail rate : greater than 50g, equal to or less than 100g
 

August 9, 2006
$1.05 cents other lettermail rate
Shortpaid 54 cents and taxed $1.05 : 54 cents deficiency + 51 cents deficient postage fee


August 30, 2006
$1.05 cents letter rate
Shortpaid 3 cents and taxed $1.05 : 3 cents deficiency + 51 cents deficient postage fee


$1.78 rate : greater than 100g, equal to or less than 200g
August 27, 2006
$1.78 cents letter rate
Shortpaid $1.27 and taxed $1.78 :  $1.27 deficiency + 51 cents deficient postage fee

52 cents fee : January 2007 - January 11, 2009



 




Hamilton to Kanata, November 2, 2007

52 cents letter rate unpaid
Taxed $1.04 : 52 cents deficiency + 52 cents deficient postage fee




(not in author's collection)
July 28, 2008
96 cent greater than 30g, equal to or less than 50g rate
Taxed 96 cents : 44 cents deficiency + 52 cents deficient postage fee (shown in T marking)




54 cents fee : January 12, 2009 - January 10, 2010

[Not shown]

57 cents fee : January 11, 2010 - January 16, 2011

 
 Ottawa Manual Sortation Short Paid Mail handstamp
July 28, 2010

 To Kanata,July, 2010
Taxed at Ottawa, July 28, 2010

57 cents letter rate unpaid
Taxed $1.14  : 57 cents deficiency + 57 cents deficient postage fee


59 cents fee: January 17, 2011 - January 15, 2012


 

 Hamilton to Kanata, December 12, 2012
59 cents letter rate unpaid
Taxed $1.18  : 59 cents deficiency + 59 cents deficient postage fee




Toronto to Kanata, November 24, 2011
59 cents letter rate unpaid
Taxed $1.18  : 59 cents deficiency + 59 cents deficient postage fee




 Ottawa (?) to Kanata, November 18, 2011
59 cents letter rate unpaid
Taxed $1.18  : 59 cents deficiency + 59 cents deficient postage fee




Vancouver to Kanata, July 44, 2011
59 cents letter rate unpaid
Taxed $1.18  : 59 cents deficiency + 59 cents deficient postage fee



61 cents fee : January 16, 2012 - January 13, 2013

 Vancouver to Kanata, July 17, 2012
61 cents letter rate unpaid
Taxed $1.22  : 61 cents deficiency + 61 cents deficient postage fee

63 cents fee : January 14, 2013 -  March 30,  2014
Return to Sender (RTS)

Insufficiently paid letters with a return address were returned to the sender. 

 Return to sender (RTS) handstamp
 The cover below from Toronto was unfranked and returned to the sender. The Toronto office applied the RTS handstamp and the letter was returned to the sender who affixed a 63 cent stamp and remailed the letter.

 Toronto to Kanata, March 27, 2014
63 cents  Canada Post "offer" letter rate

 The 63 cent stamp was affixed over the RTS handstamp

Tax Paid by Addressee

[Not shown]