|
Tax
and Revenue Administration
OLD Fuel Tax
Act
Information Circular BD-5R1 |
| Released: |
August 1998 |
| Produced by: |
Alberta Finance, Tax
and Revenue Administration |
| For more information: |
tra.revenue@gov.ab.ca |
BD-5R1 /
August 1998
Note: Due to the
Government of Alberta reorganization in November 2004, where applicable,
the web versions of our documents have been updated to change references
from "Minister of Revenue" or "Provincial Treasurer"
to "Minister of Finance". References to "Revenue Canada"
or "Canada Customs and Revenue Agency" have been changed to
"Canada Revenue Agency" to reflect that name change as well.
The paper version of this document is available from Tax
and Revenue Administration and if applicable, will be updated as time
permits.
ALBERTA FUEL TAX ACT
INFORMATION CIRCULAR - BULK DEALERS
REFUNDS TO BULK DEALERS
This information circular discusses the provisions for fuel tax refunds to bulk
dealers. The topics discussed include:
- A refund of fuel tax, previously paid by a bulk dealer to a supplier and then remitted
to Tax and Revenue Administration ("TRA"), is available if the fuel is destroyed
in a natural disaster, accident or fire, or is lost due to tank rupture or theft.
Commission agents must immediately advise their oil marketing company suppliers of the
loss; independent agents must advise TRA. Both must provide the following documentation in
support of any claim:
a) the police or fire department's report, as applicable;
b) confirmation from an insurance company that a claim has been made in respect of the
loss; and
c) a brief description of the incident and the method used to determine the volume of
fuel lost (e.g. inventory records, shipping bills, etc.).
- A refund of fuel tax, paid to TRA on fuel sold on credit by a bulk dealer to a retailer
or to another bulk dealer, is available if the purchaser fails to pay for the fuel due to
bankruptcy or insolvency. In order to obtain a refund, commission agents must notify their
oil marketing company suppliers of the purchaser's bankruptcy or insolvency as soon as
possible. Oil marketing companies and independent bulk dealers must notify TRA of a
bankruptcy or insolvency within thirty days of becoming aware of the customer's situation.
A refund claim must be filed with TRA within 90 days of the date the agent became aware of
the situation. Refund applications received after the ninety day time period will only be
paid if TRA's ability to recover tax from a third party is not compromised by the delay.
- Refunds resulting from bankruptcy or insolvency must be fully supported with copies of:
a)
sales invoices, each invoice broken down by fuel type; and
b) ledger cards or accounts receivable statements;
and one of the following:
c) the notice of bankruptcy from the trustee, in the case of a bankruptcy;
d) the notice to creditors from the receiver, in the case of a receivership; or
e) a brief description of collection action taken to recover the receivable from the
insolvent firm, in the case of an insolvency other than a receivership, and the date the
receivable was written off.
If the appropriate documents are not available at the time the adjustment is submitted,
this should be stated in a covering letter. The documentation must be submitted as soon as
possible thereafter.
- For the purposes of obtaining refunds under sections 1 or 2 above, a bulk dealer is
deemed to have become aware of the situation on the earliest of the following dates:
a)
the date the dealer discovered the loss of fuel under the circumstances covered in section
1;
b) the date the dealer receives a notice of bankruptcy from a trustee or a notification
of receivership from a receiver;
c) the date the dealer makes the accounting entries showing the receivable as a bad
debt for income tax purposes.
- Fuel sold by a bulk dealer and delivered by the bulk dealer, or by a common carrier
hired by the bulk dealer, to a customer located outside of Alberta, for use outside of
Alberta, may be sold free of Alberta tax. Bulk dealers must ensure that the tax of the
jurisdiction to which the fuel is delivered is collected and remitted.
- If a common carrier delivers the fuel on behalf of the bulk dealer, a bill of lading
must be obtained identifying the volume of fuel delivered and the delivery location. In
all cases, invoices must show that Alberta fuel tax was not charged.
- Commission agents report these interprovincial/export sales to their oil marketing
company suppliers. Independent bulk dealers report these sales on Schedule "E"
(form AT332) and on line 13 of form AT372. All adjustments reported must be supported by one
of the following:
a) a copy of the bill of lading covering the transport of the fuel by
a common carrier, if applicable;
b) a copy of the fuel tax return for the jurisdiction of destination which includes the
fuel transaction; or
c) an original "Entry Summary Form" (form 7501) bearing an original
U.S. Customs Department stamp and original signature and indicating the volume and type of
fuel, and the bill of lading or the ticket number provided by the U.S. Customs Department.
- Customers who intend to transport fuel bought in Alberta out of province must pay the
Alberta fuel tax upon purchase. If gasoline or diesel fuel is transported outside Alberta
in bulk by the purchaser, a refund of the Alberta tax is available upon application to
TRA, if documentation as itemized in paragraph seven above is provided. The customer must
first report the fuel importation and remit the fuel tax payable to the other
jurisdiction.
- A refund is available for the amount of Alberta Farm Fuel Distribution Allowance
("AFFDA") provided to eligible farmers. Information Circular BD-2 discusses the eligibility for AFFDA. This refund is obtained by completing Schedule
"C" (form AT341) and reporting the total of the Schedule on line 7 of form
AT372.
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