Disclaimer: Due to the Government of Alberta reorganization in November 2004, where applicable, the web versions of our documents have been updated to change references from "Minister of Revenue" or "Provincial Treasurer" to "Minister of Finance". References to "Revenue Canada" or "Canada Customs and Revenue Agency" have been changed to "Canada Revenue Agency" to reflect that name change as well. The paper version of this document is available from Tax and Revenue Administration and if applicable, will be updated as time permits. FUEL TAX REBATE
CLAIMS - OFF ROAD OPERATIONS
This document outlines and presents a standardized approach to the supporting documentation provided with the Tax Exempt Fuel User (TEFU) rebate claims for off-road operations. Please note a change that will affect the preparation of a Fuel Tax Rebate Application. To ensure that all claims are processed and paid to the proper legal entity, all claims filed must provide the Business Identification Number. For corporations, we require that you provide your Alberta Corporate Account Number in the space provided on the application form. Kindly also ensure that all schedules are completed properly. TRA’s system will not accept overlapping claims, and as always, only one account number can be issued for one legal entity. This means that TRA will not be able to accept and process separate claims for different divisions or locations of one legal entity. TRA will no longer accept and process these separate claims. All divisions and/or locations of a legal entity must be filed on one claim for each claim period. The calculations for each division can be separate including the applicable schedules, but only one application form can be filed.
Applicants must complete and sign a Fuel Tax Rebate Application (form AT342). In order to determine rebate eligibility, all information requested on this form must be provided with each claim. Incomplete applications will be rejected and returned to the claimant for resubmission. Computer-generated forms may be used instead of TRA’s pre-printed forms providing all the required information is presented in the same format.
The total fuel purchased for each fuel type listed on schedule A’s are reported in the "FUEL TAX REBATE" box (column 1) of this application.
Schedule A - Listing of Fuel Purchases A separate schedule for each type of fuel purchased must be completed chronologically listing all invoices. Invoices not in the applicant’s name must be listed on separate schedules, again, by each fuel type. An adjustment to the total fuel purchases must be made to Schedule A if you are claiming a tax rebate on off-road consumption for a vehicle registered under the International Fuel Tax Agreement (IFTA). The adjustment information is obtained from the Quarterly IFTA Fuel Type Schedule AT2060, row AB, column 6. From this IFTA schedule, a credit amount would decrease and a debit amount would increase the total fuel purchases listed on the TEFU schedule A. You must enter the number of litres for the applicable quarter for each year within the claim period on the bottom of page two of the TEFU schedule.
First time claimants must provide all fuel invoices at the time of application. These fuel purchase invoices must be arranged in the same order as listed on the schedule A. Invoices must display the required information as outlined in Information Circular TEFU-1.
Schedule B - Licensed Units Fuel Consumption Calculations Each fuel type being claimed requires a separate schedule. Only fuel consumed off-road by licensed units, including refrigeration trailer units (reefers) can be claimed. Each unit must be identified by a reference number. Each reference number is a unique number specified by the claimant. Serial numbers cannot be used as reference numbers. Please provide each unit(s) reference number in the first line of each section of this schedule. This column may contain several REF#(s) if common unit(s) are grouped. The reference number is the same number used in schedule D. Consumption data is required per type of unit, per job location, per time frame. Off-road fuel consumed is then calculated by multiplying hours operated per unit for each activity by its consumption rate per hour then multiplying this result by the number of units used during the claim period. Total fuel consumed is then the sum of each activity’s consumption.
Accurate records of daily operations are the most convincing information to support a claim. This method should be used where operations are non-routine in nature. A summary of this data is reported on schedule B and submitted with the application. The onus is on the claimant to demonstrate how these books and records support the off-road fuel consumption. Information and records supporting the claim summary data must be retained for audit purposes for four years from the end of the calendar year in which the records were created.
Survey data is based on actual observed and recorded operations. The results of a survey are used to calculate typical amounts of hours spent on-road and off-road. A survey may be applicable to several claim periods when operations are routine in nature. Operations are considered routine if the off-road and on-road mix does not change more than 10% month to month. A survey involves the tracking of time by location of one or more similar types of equipment with similar fuel consumption rates for a specific period. This can be done by specifically monitoring actual operations or by analyzing records already kept. TRA will be contacting claimants from time to time to ensure that operations are routine in nature and therefore a survey is appropriate. The minimum survey period shall be one month. An annual survey should be used where the time spent on and off road does not change as a result of seasonal or work cycle factors. Other annual operations may consist of distinct cycles spanning several months where the amount of time spent on and off road changes with each cycle. The minimum survey period for such a cycle is two weeks. The combined total of cycle survey periods must be a least one month. These surveys may be used for subsequent claims where off-road activities, job locations and cycles remain the same. Please complete survey type performed, the claim ending date to which the survey is first applied and the survey duration date for each section of schedule B. However, a survey should not be used for more than four years from the beginning of the claim period to which it first applied.
Surveys must consider the various consumption variables such as off-road working time and idling time. Consumption rates must be adjusted to reflect these variables. The rates must also reflect overall operations. Adjustments or additional surveys may be required for summer and winter operations. Each job location must be surveyed. If job locations are not surveyed, then fuel consumed at those locations will be disallowed. Survey’s details will be requested by TRA from time to time when your claim is selected for an in-depth review or for audit purposes. Information and records supporting the survey must be retained for these purposes. Failure to retain this information may result in a reassessment of your claim plus interest and penalties under the Fuel Tax Act. Survey details must be reported on Schedule B - Fuel Consumption Calculations and submitted along with your Fuel Tax Rebate Application.
Claim Calculations
The first method would be to perform your own tests. These should be documented and be available for TRA review.
Schedule C - Unlicensed Equipment Fuel Consumption Calculations Marked, tax-exempt fuel should be used in unlicensed equipment and vehicles, as well as for heating and other non-motive purposes. Effective July 1, 1998, TRA will not process claims where marked fuel could have been used unless the claimant has obtained a TEFU number and can establish that marked fuel was not reasonably available or provides a statement as to why it was impractical for them to use marked fuel in their individual circumstances. Each fuel type being claimed requires a separate schedule. Only unmarked fuel consumed by unlicensed equipment can be claimed. Claims should only be submitted if the conditions above apply and a statement was provided in question 15 of the Fuel Tax Rebate application. If you have included hours worked for unlicensed equipment that also used marked fuel, an adjustment must be made to deduct the number of litres of marked fuel used during these hours. This deduction should be made on page 2 of this schedule. Equipment grouped by type may have different fuel consumption rates due to model variations. Each piece of equipment can be separately listed on schedule C with its specific consumption rate or similar equipment types can be grouped on one line and either the weighted average consumption rate can be used or the lowest consumption rate of that group type can be used. Each unit must be identified by a reference number. Each reference number is a unique number specified by the claimant. Serial numbers cannot be used as reference numbers. Please provide your equipment reference number in the first column of this schedule. This column may contain several REF#(s) if common pieces of equipment are grouped. The reference number is the same number used in schedule D. Total fuel consumed is calculated by multiplying the total hours for each equipment type by its consumption rate per hour. Please note, column C must contain the number of operating hours for all pieces of equipment in the group.
Records of hours worked, fuel allocations, and consumption rate per hour should be retained for audit purposes or if claim is selected for an in-depth review. The onus is on the claimant to demonstrate how these books and records support the hours worked and fuel consumption. Supporting data must be retained for audit purposes for four years from the end of the calendar year in which the records were created.
Schedule D - Unit and Equipment List A current equipment list must be submitted for each claim. A separate schedule must be completed for licensed and unlicensed units and equipment. Unlicensed equipment should only be listed on this schedule if the clear fuel was used, see section IV. Also this schedule should include rented or leased equipment used during the claim period. The information requested on this schedule will be used to determine the reasonability of your claim. The list must be completed as outlined below.
|
