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Tax and Revenue Administration
Alberta Indian Tax Exemption Program
Information Circular
AITE-4R7


Last Updated: February 6, 2017
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

AITE-4R7 / January 2010

NOTE: This information circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this Information Circular and governing legislation, the legislation takes precedence.

The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.

ALBERTA INDIAN TAX EXEMPTION PROGRAM INFORMATION CIRCULAR:
OFFENCES AND PENALTIES

This information circular is intended primarily for exempt-sale retailers of tobacco, exempt-sale vendors of fuel, or registered operators under the Tourism Levy Act who sell those products or accommodation exempt from Alberta tax or the tourism levy to eligible Indian consumers. The topics are offences and penalties under the:

 

Tobacco Tax Act

  1. It is an offence under the Tobacco Tax Act for a retailer to purchase, possess, sell, or offer for sale tobacco product not marked for tax-paid sale in Alberta unless the retailer is an exempt-sale retailer and the product is black stock. A retailer found to be in contravention is guilty of an offence and subject, on conviction, to the following:
  • for a first offence - a fine up to $20,000, or up to six months imprisonment, or both;
  • for a second offence - a fine of up to $50,000 or up to one year imprisonment, or both;

and

  • a fine of three times the amount of tax that:
    • should have been collected and remitted by a person selling tobacco to consumers; or
    • would have been payable under the Tobacco Tax Act by the retailer if the tobacco were marked for tax-paid sale in Alberta and sold to a consumer in Alberta; and

in addition, Tax and Revenue Administration (TRA) may assess the retailer a penalty equal to three times the tax that would have been payable if the product was not black stock.

  1. The offence applies to anyone who is not a registered exempt-sale retailer yet sells black stock tobacco in Alberta. For example, the offence and penalties apply to any individual selling black stock out of his/her home or vehicle.

  2. Only persons authorized by TRA are permitted to mark packages, cartons and cases. Anyone found guilty of marking tobacco without authorization is subject to a fine up to $1,000,000 or imprisonment of up to three years, or both.

  3. Tobacco retailers who fraudulently make false statements or claims to TRA, make false entries in their records, or destroy records without permission are subject to a fine up to $20,000 or imprisonment of up to two years, or both.

    For more information about offences, penalties and enforcement under the Tobacco Tax Act refer to Information Circular TTA-2, Offences, Penalties and Enforcement.

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Fuel Tax Act

  1. “Vendor” means a person who sells fuel in Alberta to a consumer. A registered AITE retailer is an “exempt-sale vendor” under the Fuel Tax Act .

  2. Registered exempt-sale vendors may sell clear fuel exempt from Alberta fuel tax to an eligible Indian or Indian band presenting a valid AITE card at the time of sale (see Information Circular AITE-3, Exemptions under the AITE Program). The sale of taxable fuel exempt of tax to someone who is not eligible to purchase the products tax out is prohibited. A vendor who contravenes this prohibition (or fails to register with TRA) is guilty of an offence and, on conviction, is subject to the following:

    • for a first offence, a fine of up to $10,000, or up to six months imprisonment, or both;
    • for a subsequent offence, a fine of up to $25,000, or up to one year imprisonment, or both.

  3. A vendor who fails to submit returns and reports, provide information when required, or maintain records is guilty of an offence and, on conviction, is subject to a fine of $50 for each day of default.

  4. Consumers who resell fuel purchased exempt from tax commit an offence and, on conviction, are subject to the following penalties:

    • for a first offence, a fine of up to $1,000;
    • for a subsequent offence, a fine of up to $5,000, up to six months imprisonment, or both.

  5. Exempt-sale vendors who fraudulently make false statements or claims to TRA, false entries in their records, or destroy records without authorization from TRA, are liable to a fine up to three times the difference between the amount of tax not remitted or evaded, or refund applied for, or obtained. Conviction may also result in a prison term up to two years, or both the fine and imprisonment. These penalties are in addition to those otherwise provided by the Act. For more information about offences, penalties and enforcement under the Fuel Tax Act refer to Information Circular FT-10, Offences and Penalties.

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Tourism Levy Act

  1. Not filing a tourism levy return or providing information or documentation required by the Act is an offence under the Tourism Levy Act. A person found guilty of the offence is liable to a fine determined by a judge and based on each day of default.

  2. Not collecting and remitting the tourism levy when required is also an offence under the Act. A person found guilty of the offence is liable to a fine up to three times the tourism levy that was to be paid, collected or remitted.

  3. It is an offence under the Tourism Levy Act for a person to:

    • make false statements in a return or document prepared under the Act or regulations;
    • destroy, alter, mutilate or dispose of records to be kept under the Act;
    • make false entries or omit information in records; or
    • evade or attempt to avoid complying with the Act.

  4. A person found guilty of one of the above offences is liable to a fine up to three times the tourism levy evaded, or both a fine and imprisonment up to two years.
  1. It is an offence for a corporation to:

    • evade, or attempt to evade, payment of the tourism levy. A corporation found guilty of the offence is liable to a fine up to three times the amount of the tourism levy that was to be paid;
    • willfully claim, or attempt to claim, a refund greater than the refund to which it is entitled. A corporation found guilty of the offence is liable for a fine up to three times the excess refund that it was not entitled to receive.

  2. An individual may not:

    • make false statements in a return or document prepared under the Act or regulations;
    • destroy, alter, mutilate or dispose of records to be kept under the Act;
    • make false entries or omit information in records;
    • evade, or attempt to evade, compliance with the Act; or
    • conspire with any person to commit one of the above offences

to enable or assist a corporation to evade, or attempt to evade, payment of the tourism levy. If found guilty of the offence, the individual is liable for a fine up to three times the tourism levy sought to be evaded, or both a fine and imprisonment for up to two years.

  1. If an individual's actions enable or assist a corporation to claim a refund greater than the refund to which it is entitled, the individual is liable for a fine up three times the refund to which the corporation was not entitled, or both a fine and imprisonment for up to two years.
  1. A person who contravenes any provision of the Tourism Levy Act for which a penalty is not specifically set out will be subject to the following fines and penalties, if found guilty, for a

    • first offence, a fine up to $1000,
    • second offence, a fine up to $2500, and
    • third or subsequent offence, a fine up to $5000.


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