 |
Tax
and Revenue Administration
Fuel Tax
Act
Information Circular FT-3R1
|
| Last Reviewed: |
November 1996 |
| Produced by: |
Alberta Finance, Tax
and Revenue Administration |
| For more information: |
tra.revenue@gov.ab.ca |
FT-3R1 /
November 1996
Note: 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.
ALBERTA FUEL TAX ACT
INFORMATION CIRCULAR - OIL MARKETING COMPANIES
ADMINISTRATION
This information circular discusses the following topics:
- Tax and Revenue Administration (TRA) auditors are authorized by the
Minister of Finance
to conduct inspections and audits of agent's and agent-collector's records to determine
whether the fuel tax has been properly collected and remitted. An agent/agent-collector
selected for audit must make his records available to the auditor for inspection and
audit.
- TRA recognizes that, in the course of desk audits (in-office reviews) and field audits
of fuel tax returns, small discrepancies may occur between the auditor's figures and those
of the agent or agent-collector. To avoid small time-consuming revisions, a specific
tolerance has been adopted.
- A tolerance, for assessment purposes, is a dollar range within which a charge will not
be levied nor will a refund be generally issued. In the case of an assessment, no
disbursement or collection action will be initiated for differences determined of up to
$20.00.
- The Tax Services Division of TRA has the responsibility of considering objections to any
of the following actions:
- the issuance of an assessment or reassessment of fuel tax, interest or penalties;
- the refusal to issue a fuel tax exemption number or Alberta Farm Fuel Benefit
(AFFB)
registration number for the purchase of marked fuel;
- the cancellation of a fuel tax exemption number or AFFB registration number for the
purchase of marked fuel;
- the refusal to pay a rebate of fuel tax or a fuel grant.
- A separate notice of objection must be completed in the prescribed form for each action
to which objection is taken within 90 days of the day of mailing of the notice of
the action leading to the objection. Notices of objection must be sent by certified mail,
by registered mail or by courier to:
- An appeals officer will review the objection and will either confirm, vary or vacate the
assessment or reassessment, or confirm or vacate the refusal or cancellation. The objector
will be advised of the decision.
- Notice of objection forms can be obtained by calling 427-3044 (Edmonton calling area) or
310-0000/427-3044 (Alberta toll free).
- If the objector is dissatisfied with the disposition of his objection, he may file an
appeal with the Court of Queen's Bench within 90 days of the date of mailing of the
response to the notice of objection. Also, if the objector has not received a response
from the Tax Services Division within 90 days of the filing of the notice of objection, he
may directly file an appeal with the Court of Queen's Bench. In both cases the appeal must
be served on the Minister of Finance and a copy must be filed with the Clerk of the
Court. The Court may confirm, vary or vacate the (re)assessment leading to the appeal or
confirm or vacate the refusal or cancellation leading to the appeal. The Court may make an
order relating to costs as it deems appropriate. The decision of the Court may be appealed
to the Alberta Court of Appeal, and subsequently to the Supreme Court of Canada.
- If, in the opinion of TRA, there has been neglect, carelessness, wilful default, fraud
or evasion on the part of an agent, agent-collector or agent-dealer resulting in an amount
owing to the Crown, a penalty of 25 percent of the amount owing may be assessed against
the agent, agent-collector or agent-dealer.
- Agents and agent-collectors who fail to submit a return as and when required may be
assessed a penalty in the amount of $25 for each day of default.
- Agents and agent-collectors who fail to remit tax to TRA as and when required may be
assessed a penalty equal to 5 percent of the amount due, for each month or part of a month
in which the amount is overdue.
- An agent or agent-collector who:
- fails to collect or remit tax;
- dyes fuel or mixes dyed fuel with undyed fuel without authorization to do so;
- sells marked fuel to an ineligible consumer; or
- fails to fully pass on tax exemption and fuel allowance benefits to a purchaser of
marked fuel;
is guilty of an offense and is liable, upon conviction, to a penalty as follows:
- for a first offense, a fine of up to $10,000 and/or a jail term of up to six months;
- for a subsequent offense, a fine of up to $25,000 and/or a jail term of up to one year;
plus, for any offense, an amount of up to 300 percent of any amount lost by TRA as a
result of the offense.
- An agent or agent-collector who makes, assents to, or conspires with another person to
make false statements or false or deceptive entries in records, or destroys or alters
records, or wilfully evades compliance with the Fuel Tax Act or Regulations, is guilty of
an offense and is liable, upon conviction, to a fine of up to 300 percent of any amount
lost by TRA as a result of the offense.
- An agent or agent-collector who fails to file a return or provide information, or who
fails to maintain records and books of account when required to do so, is guilty of an
offense and is liable, upon conviction, to a fine of $50 for each day of default.
- An agent or agent-collector who contravenes a provision of the Act or Regulations for
which no other penalty is specified is guilty of an offense and is liable, upon
conviction, to a penalty of:
- for a first offense, a fine of up to $1,000 and/or a jail term of up to one month;
- for a subsequent offense, a fine of up to $5,000 and/or a jail term of up to six months.
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