Vol. 1 No. 6 / January 2002 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 SPECIAL NOTICE: This Special Notice is being sent because we have found in recent audits that marked fuel is being sold to customers who do not have a current Fuel Tax Exemption (TEFU) or Alberta Farm Fuel Benefit (AFFB) number. Bulk dealers are reminded that marked fuel may be sold ONLY to eligible customers, as set out in Information Circular BD-3. If a bulk dealer sells marked fuel to a customer who does not have a TEFU or AFFB number, unless the sale is made as set out in paragraph 10 of Information Circular BD-3, the oil marketing company (in the case of a commission agent) or the independent bulk dealer are jointly and severally liable with the customer for an amount equal to tax and an amount equal to any Alberta Farm Fuel Distribution Allowance (AFFDA) granted. The legislation providing for this liability is sections 11(3) and 14(2) of the Fuel Tax Act. These liabilities are for amounts equal to tax and AFFDA; they are not liabilities for tax and AFFDA. There are NO provisions in the legislation that would allow us to refund any amounts charged to a seller or a purchaser under these sections of the Act. There are also no provisions in the legislation that would allow a bulk dealer to re-bill customers for any amounts payable by the bulk dealer or the oil marketing company to Alberta Finance pursuant to sections 11(3) and 14(2) of the Act. In view of the above, bulk dealers are urged to take steps to ensure that marked fuel is sold only to eligible customers. We suggest that all bulk dealers and their staff re-read Information Circular BD-3 and follow its requirements in order to avoid potential future liabilities.
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