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Tax and Revenue Administration
Fuel Tax Act
Information Circular PRO-2R2


Released: May 30, 2013
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

PRO-2R2 / May 2013

ALBERTA FUEL TAX ACT INFORMATION CIRCULAR:
PROPANE RETAILERS - TAX REFUNDS TO PROPANE RETAILERS FOR TAX-OUT SALES

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 refund application process and the related responsibilities of propane retailers under the Fuel Tax Act and Regulations. The topics discussed include:

Calculating the Refund Due

  1. Retailers purchase all propane that is delivered into a storage tank used to fuel vehicles tax-in from distributors or producers. Retailers charge tax on propane sold through the automotive dispensing system, but not propane dispensed into portable cylinders.

  2. Retailers may make an application to Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA) for a refund of the tax paid by them on all propane sold tax-out to consumers. However, retailers must be registered with TRA to be eligible to claim this refund (see Information Circular PRO-1, Overview of Fuel Tax on Liquid Petroleum Gas [LPG] for registration details).

  3. Retailers must keep records of all propane purchased and received (see paragraphs 9 and 10 below) and totalizer readings which indicate the volume of propane sold tax-in. The refund due to the retailer for a reporting period is calculated by taking the total volume of propane purchased tax-in and deducting the total volume of tax-in sales to arrive at the amount of propane that the retailer bought tax-in and subsequently sold tax-out. The volume of tax-in sales is based on the volumes recorded on the totalizer meter, adjusted for propane returned into the retailer's storage tank during meter testing.

  4. A reporting period can be one week or more. Reporting periods must be consecutive; that is, the beginning date of a period must be the day after the ending date of the previous period.

  5. Refund claims are determined by completing the "Propane Retailer Claim for Refund of Propane Tax" (form AT384) and "Calculation of Non-Taxable Propane Volumes Daily Worksheet" (form AT385). Use paper forms only as worksheets for calculating claims.  They will not be accepted for filing claims. You may submit refund applications electronically only when the refund due is more than $100.00. The only exception is if you are ceasing your retail operation and filing your final claim with TRA.

Filing Refund Claims

  1. After registering (see paragraph 2), retailers will file claims using the web-based TRA Client Self-service (TRACS) system. For more information about this method of filing, please click on the link in the previous sentence. If you are not already enrolled, click on “TRACS Enrolment Request” and complete the online form for "Program Name: Propane Retailers". If you operate at more than one location you are required to enrol for each retail site, then file separate claims for each location. Interactive voice response (IVR) claim filing will not be available after June 16, 2013.

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Payment of Claims by TRA

  1. If you wish to obtain refunds of propane tax paid you are required to send an "Application for Direct Deposit" (form AT4812) to TRA with your "Retailer Registration for Propane Tax Refunds" (form AT389). The information on the direct deposit request is confidential and will only be used to enable TRA to provide the refunds as quickly as possible.

  2. You will receive a "Statement of Deposit" when the refund is processed and deposited into your bank account. Alternatively, you can review all account transactions on TRACS.

Records and Records Retention

  1. You are required to keep certain records for a period of four years from the end of the calendar year to which the records and books of account relate. You may destroy records after four years, unless TRA has formally requested them to be kept for a longer period. You may destroy records before the end of the four year period only if you have received written permission from TRA. To obtain permission for early destruction of records, forward a letter to TRA requesting permission to destroy records. TRA will review the request and advise you of its decision.
  1. The type of records and books of account which you must keep for four years include:
  • purchase records for propane (purchase orders, records of products received);
  • totalizer meter readings;
  • sales records (invoices to customers, accounts receivable statements or ledgers and bank statements);
  • "Propane Retailer Claim for Refund of Propane Tax" (form AT384) and "Calculation of Non-Taxable Propane Volumes Daily Worksheet" (form AT385) worksheets or similar working papers you used to calculate the claims;
  • computer records of any/all of the above and additional computer files and records you used to prepare, or as an information source for, refund applications, including a copy (i.e., backup on tape or diskette) of any program you used to create, maintain and review these records;
  • records of meter repairs and calibrations.

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