and Revenue Administration
Information Circular LPG-2R1
||July 22, 2009
|| Alberta Treasury Board and Finance, Tax
and Revenue Administration
|For more information:
ALBERTA FUEL TAX
ACT INFORMATION CIRCULAR:
PROPANE DISTRIBUTORS REPORTING AND REMITTING REQUIREMENTS
(Effective April 1, 2007)
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 sets out the responsibilities of producers and distributors
of propane under the Fuel Tax Act and Regulations. The topics include:
- Propane distributors are required to report to Tax and Revenue Administration (TRA) all taxable propane sales during a month by submitting a “Propane Tax Return” (form AT360). They must also remit the tax paid on the sales. A return is required for each accounting period, even if no taxable sales were made (i.e., a "nil" return).
- The Propane Tax Return and tax remittance must be received by TRA no later than the 28th day following the end of the accounting period in which the propane was sold. This also applies to "nil" returns. If the 28th day falls on a weekend or a government holiday, the due date is the next business day.
- Propane distributors must keep records of tax-out sales made to consumers (see “Records and Records Retention” section below). Information Circular LPG-1, Propane Distributors Overview, outlines procedures for sales made tax-out to purchasers of propane.
- Remit taxes to TRA by one of the following methods:
- mailed, delivery by courier or hand-delivery to the TRA Edmonton office only. Make remittances payable to the Government of Alberta, accompanied by a Remittance Advice. The effective date of receipt of a mailed or delivered remittance is the date it is actually received by TRA. If you mail or courier your taxes to TRA, allow adequate lead-time to ensure TRA receives your remittance on, or before, the due date. If hand-delivering, take your payment to the TRA Edmonton office between the hours of 8:15 a.m. and 4:30 p.m., Monday to Friday, except government holidays.
- at most financial institutions in Canada, if accompanied by a Remittance Advice. The effective date of receipt is the business day stamped on the Remittance Advice by the financial institution.
- by wire transfer. The effective date of receipt is the business date the funds are received by TRA's bank. For more information on this option, contact TRA at 780-427-3044 or 310-0000-780-427-3044 (Alberta toll-free).
- through internet payment services provided by major financial institutions in Canada. The effective date of receipt is the date TRA's account is credited. For details on this option, contact your financial institution or call TRA at the above number.
- 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 FT-7, Assessments.
- If you do not submit a return or report as, and when, required, TRA may assess a penalty against you, as explained in Information Circular FT-7, Assessments.
You are required to clearly indicate on all invoices whether the sale of propane is tax-in or tax-out. Where you have charged tax on the sale, show the tax separately on the invoice.
Invoices are also required to contain the following information:
- your name and address;
- the date of the sale;
- the amount in litres of propane sold; and
- if the sale does not include tax, or the sale is to a propane retailer, the name of the purchaser.
- Keep records for a period of six years from the end of the calendar year to which the records and books of account relate. You may destroy the records after this time, unless TRA has formally specified you keep them for a longer period. You may destroy records before the end of the required retention period only if you receive written permission to do so from TRA.
- Keep records and books, including supporting documentation at your propane place of business or residence in Alberta, unless you receive approval from TRA to locate the records elsewhere in Canada or outside the country.
- If you have received permission to keep your records outside Canada, you are required, on TRA's request and at your own cost, to forward the records, books and supporting documentation to TRA or a business location in Canada, or arrange to have TRA's audit staff visit at the location of the records and books. In the latter case, you will absorb the incremental costs incurred in sending auditors outside Canada.
- The type of records and books of account you must retain for the required period
noted above include:
- purchase records for propane (purchase orders, exchange agreements, records of exports,
transfers, swaps, loans, exchanges and invoices from suppliers);
- records of totalizer readings;
- records of meter repairs and recalibrations;
- sales records (invoices to customers, accounts receivable statements or ledgers and bank statements);
- records of customers' exemption and registration numbers (see Information Circular LPG-1, Propane Distributors Overview);
- records of inter-company transfers, import and export records, and related documentation;
- computer records of any or all the above, and additional computer files and records you used for the preparation of, or as an information source for, the tax return, including a copy (i.e., backup on tape or diskette) of any program you used to create, maintain and review these records;
- records of propane for your own use; and
- inventory at the end of each month.
- If your records are created electronically you are required to maintain the system that enables the records to be read and printed.