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Tax and Revenue Administration
Natural Gas (Heating Purposes) - Payable, Filing and Remittance
Information Circular CL-NG-2R1


Last Reviewed: January 5, 2017
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.carbonlevy@gov.ab.ca

CL-NG-2R1 / January 2017

NATURAL GAS (HEATING PURPOSES) − PAYABLE, FILING AND REMITTANCE

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.

This Information Circular explains the carbon levy payable, filing and remittance requirements for natural gas (heating purposes) under the Climate Leadership Act (the Act) and the Climate Leadership Regulation (the Regulation), which are administered by Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA).

Topics include:


DEFINITIONS

  1. “Billing cycle amount” means the aggregate of:

    • the total amount of carbon levy;

      • in the case of a natural gas distributor that prepares a tariff bill file, charged by the natural gas distributor to all retail dealers on tariff bill files in respect of all distributor invoices ending in the reporting period; or

      • in the case of a natural gas distributor that does not prepare a tariff bill file, payable on natural gas in respect of all billing periods ending in the reporting period;

      and

    • the total amount of carbon levy payable on any other amount of natural gas sold, removed, purchased or imported in the reporting period that is not included in the amount of carbon levy referred to above.


  2. “Billing period” means the period of time for which a recipient is issued a bill for natural gas supplied to the recipient.


  3. “Distributor invoice” means an invoice issued by a natural gas distributor to a specific retail dealer representing tariff charges for distribution, system access services and carbon levy.


  4. “Tariff bill file” means the tariff bill file for the purposes of the AUC Rule 004: Alberta Tariff Billing Code Rules (Rule 004), published by the Alberta Utilities Commission.

WHEN CARBON LEVY IS PAYABLE

  1. Carbon levy is payable by recipients of natural gas (heating purposes), at the carbon levy rate for natural gas at the time the recipient sells, removes or purchases natural gas from a natural gas distribution system. Applicable carbon levy rates can be found on the Carbon Levy Rates table.


  2. The carbon levy payable by a recipient on natural gas (heating purposes) must be determined by a natural gas distributor who either:

    • communicates the amount of carbon levy payable to the retail dealer that provided the natural gas services to the recipient, at the time other billing information of the recipient is provided to the retail dealer; or

    • bills the recipient directly the amount of carbon levy payable, at the time the recipient is billed for their natural gas usage, if the natural gas distributor is the entity that provides natural gas services to the recipient.

  3. The retail dealer that provides natural gas services to the recipient must remit to the natural gas distributor the total amount of carbon levy determined and communicated by the natural gas distributor to the retail dealer.


  4. The natural gas distributor must remit to TRA the total amount of carbon levy determined by the natural gas distributor in respect of all recipients.

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WHEN CARBON LEVY IS NOT PAYABLE

  1. No carbon levy is payable if natural gas (heating purposes) is purchased exempt from the carbon levy by a holder of a carbon levy exemption certificate, or with other evidence of exemption.

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CALCULATION OF CARBON LEVY PAYABLE

  1. If a recipient is billed by billing period, the amount of natural gas (heating purposes) sold, removed or purchased by the recipient from a natural gas distribution system during a billing period is the amount of natural gas (heating purposes) that should be used to determine the carbon levy payable by the recipient for the billing period.


  2. If the amount of natural gas (heating purposes) sold, removed or purchased is estimated for the purpose of preparing a recipient’s bill, for a billing period, the estimated amount is deemed to be the amount of fuel sold, removed or purchased for the purposes of determining the carbon levy payable by the recipient for the billing period.


  3. If subsequent to a billing period for which the amount of natural gas (heating purposes) sold, removed or purchased was estimated, the actual amount of natural gas (heating purposes) sold, removed or purchased becomes available, the natural gas distributor must determine the carbon levy payable based on actual amounts.


  4. A natural gas distributor must determine the carbon levy payable using:

    • the operating practices of the natural gas distributor that are filed with the Alberta Utilities Commission if applicable; or

    • in any other case, a method acceptable to TRA.

  5. The amount of carbon levy that a natural gas distributor must remit to TRA in respect of a reporting period is the billing cycle amount.

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Carbon Levy Payable by Direct Remitters for Own Use

  1. The carbon levy payable by a direct remitter for their own use of natural gas (heating purposes) for the reporting period is determined by the formula:

    (A − B) x C

where

A is the amount of natural gas (heating purposes) used by the direct remitter for the reporting period;

B is the amount of natural gas (heating purposes) in respect of which the direct remitter was exempt from paying the carbon levy;

C is the carbon levy rate for the natural gas (heating purposes), at the time the natural gas (heating purposes) was used.

  1. If the carbon levy rate applicable to the natural gas (heating purposes) used by a direct remitter changes in the reporting period and the direct remitter is unable to determine the amount of the natural gas (heating purposes) used on each day in the reporting period, the carbon levy payable for the reporting period must be determined by the formula:

(A x B x C / D) + (A x E x F / D)

where

A is the amount of the natural gas (heating purposes) subject to the carbon levy that was used in the reporting period;

B is the carbon levy rate for the natural gas (heating purposes) prior to the rate change;

C is the number of days in the reporting period during which rate B was in effect;

D is the number of days in the reporting period;

E is the carbon levy rate for the natural gas (heating purposes) after the rate change;

F is the number of days in the reporting period during which rate E was in effect.

  1. A direct remitter’s own use of the natural gas (heating purposes) does not include:

    • natural gas (heating purposes) purchased and used by the direct remitter that the direct remitter was not entitled to purchase exempt from the carbon levy; or

    • biomethane that the direct remitter added to the natural gas.

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CARBON LEVY RETURNS TO BE FILED

Direct Remitter Returns

  1. A direct remitter of natural gas (heating purposes) is required to file a monthly carbon levy return with TRA using the Tax and Revenue Administration Client Self-Service (TRACS) system. The monthly carbon levy return must be received by TRA through TRACS no later than 28 days after the end of the month in which the transactions occurred.

    For more information on direct remitters of natural gas see Information Circular CL-NG-1, Natural Gas − Registration.

Self Assessing Consumer Returns

  1. A consumer who purchases natural gas exempt from carbon levy and who subsequently uses the natural gas for non-exempt purposes must file a self assessing consumer return with TRA using the TRACS system. Examples of non-exempt use include natural gas purchased exempt from carbon levy for use in an oil and gas production process and subsequently the natural gas was used for other purposes.


  2. A consumer who directly pulls natural gas from a transmission pipeline must also file a self assessing consumer return with TRA. See Carbon Levy Information Circular CL-OF-2, Other Fuels − Payable Filing and Remittance for more information.


  3. A self assessing consumer return must be submitted through TRACS and the related carbon levy payable remitted to TRA no later than 28 days after the end of the month the natural gas was used for non-exempt purposes or pulled directly from the transmission pipeline.

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REMITTING THE CARBON LEVY

  1. The carbon levy payable, as reported on the carbon levy return for a reporting period must also be received by TRA by the 28th day after the end of the month. If the payment due date falls on a weekend or government holiday, the due date will be the next business day.


  2. There are several options for remitting the carbon levy payment to TRA including:

    • pay online using Electronic Payment through your financial institution;

    • pay using wire transfer; or

    • pay by mail, courier or in person. Cheques and money orders should be made payable to the Government of Alberta.

For more information on making a payment to TRA, please see Making Payments.

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PENALTIES

  1. If you do not submit a return as, and when required, TRA may assess a penalty against you, as explained in Information Circular CL-2, Assessments, which will be made available at a later date.

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INTEREST

  1. If a payment is late or insufficient, you will be charged interest on the amount that is not paid, as set out in Information Circular CL-2, Assessments, which will be made available at a later date.

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Questions

For additional information on the Carbon Levy, please see TRA's Carbon Levy Publications and Forms page.

For general questions about the Climate Leadership Plan, please refer to the Climate Leadership Plan website at http://www.alberta.ca/climate-leadership-plan.aspx.

For questions about the administration of the carbon levy program, please email us at TRA.CarbonLevy@gov.ab.ca.

 



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