Tax and Revenue Administration Fuel Tax Act Information Circular RWY-1R1

RWY-1R1/ January 2010

ALBERTA FUEL TAX ACT INFORMATION CIRCULAR - RAILWAYS

(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.

RAILWAYS

This information circular explains:

• Definition of Locomotive Fuel
• Registration
• Purchase of Locomotive Fuel
• Tax Payable on Locomotive Fuel
• Returns
• Records

DEFINITION OF LOCOMOTIVE FUEL

1. Locomotive fuel is fuel used to operate a railway locomotive or provide heat or light to railway cars attached to a railway locomotive.

REGISTRATION

2. Anyone who uses locomotive fuel is required to register with Alberta Finance, Tax and Revenue Administration (TRA) as an activity-based direct remitter. A railway may apply for registration by sending a letter to TRA requesting registration
   

PURCHASE OF LOCOMOTIVE FUEL

3. Railways are permitted to use locomotive fuel (clear diesel purchased exempt from tax) only in railway locomotives.  The railway must clearly communicate to its supplier whether locomotive fuel or tax-paid diesel is being ordered.
   
   
4. Locomotive fuel is not permitted in other vehicles or equipment operated by railways and clear tax paid fuel is to be used instead.  A rebate may then be claimed if the railways use the clear tax-paid fuel for eligible purposes.
   
   
5. Suppliers will supply locomotive fuel only to TRA registered railways.  A list of registered railways will be posted on the Alberta Finance website.
   

TAX PAYABLE ON LOCOMOTIVE FUEL

6. Fuel tax is paid on locomotive fuel consumed in Alberta, whether purchased in Alberta or outside Alberta.
   
   
7. For locomotive fuel tax rates, see Alberta Current and Historic Tax Rates on TRA’s website.

RETURNS

8. As an activity-based direct remitter, a railway is required to file a monthly “Railway Companies Fuel Tax Return” (form AT363) and remit the tax payable to TRA.  The return and tax payment must be received by TRA no later than 28 days from the end of a calendar month.  Should the 28th day of the month fall on the weekend or government holiday, payment of tax and filing of return are due on the next business day.

RECORDS

9. Railways who operate a locomotive in Alberta must keep records of:
   
   
   • purchases of each type of fuel,
     
     
   • their inventory of each type of fuel,
     
     
   • distance travelled by the locomotive,
     
     
   • amount of fuel used in the locomotive,
     
     
   • amount of fuel used in Alberta in a vehicle other than a locomotive, and
     
     
   • any other records that establish the tax payable under the Fuel Tax Act.