Go to Home Page

Tax and Revenue Administration
 International Fuel Tax Agreement (IFTA)
 Information Circular IFTA-5R2


Last Reviewed: February 13, 2012
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

IFTA-5R2 / February 2012

ALBERTA FUEL TAX ACT INFORMATION CIRCULAR:
IFTA
AUDIT

NOTE: This information circular is intended to explain the International Fuel Tax Agreement Articles of Agreement and relevant legislation, and to provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in the interpretation between this information circular and the articles of agreement or legislation, the articles of agreement and legislation take precedence.

This information circular covers the following topics:

 

  1. The purpose of an IFTA audit is to verify fuel purchases and distances travelled as reported on form AT2059, Alberta "IFTA Quarterly Tax Return". Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA), audits Alberta IFTA licensees on behalf of all member jurisdictions.

Audit Selection

  1. In each five-year period, TRA audits at least 15 per cent of Alberta IFTA licensees. Any Alberta IFTA licensee may be selected for audit.

Go to Top of Current Document

Notification of Audit Date

  1. Prior to conducting an IFTA audit, an auditor will contact the carrier to arrange an acceptable date to begin the audit. At that time, the auditor indicates the period to be audited and the records to be reviewed. To confirm the audit date, the auditor sends a follow-up letter confirming the audit date, periods to be audited, and record requirements. At least 30 days prior to conducting the audit, the auditor sends another follow-up letter to the carrier confirming the audit date, periods to be audited, and record requirements. When an auditor is required to travel outside of Alberta to review operational records not located or not made available in Alberta, the auditor's travel expenses are billed to the carrier on completion of the audit.

Go to Top of Current Document

Audit Conferences

  1. At the beginning of the audit, the auditor holds an opening conference with the carrier to discuss the carrier's operations, reporting methods, audit and sampling procedures, and records to be reviewed, which may difer from those requested initially. As the audit progresses, there is open communication between the auditor and the carrier. An exit conference is held with the carrier to explain the preliminary findings, recommendaions for ongoing compliance and the right to object.

Go to Top of Current Document

Audit Results

  1. TRA notifies the carrier by letter of the audit findings. From the date of the notice of reassessment, the carrier has 30 days to make payment and 90 days to object to a reassessment (See IFTA-4, Administration, "Objections and Appeals", paragraphs 16 to 19 for more information).

  2. Any refund due will be issued after any outstanding tax liabilities have been satisfied.

  3. TRA submits audit reports to all member jurisdictions. While it is not common practice, a carrier's audit findings may be re-examined by any member jurisdiction, if the audit report raises questions. A member jurisdiction may, at its own expense, re-audit a carrier after notifying the base jurisdiction and the carrier of reasonable cause for the re-audit. Such re-examination by a member jurisdiction must be based exclusively on the audit sample period used by the base jurisdiction in conducting its audit.

Go to Top of Current Document

Go to Index



Home
| Using this Site | Privacy | Accessibility

Contact Us | Search | Site Map | Links

Copyright and Disclaimer

Copyright Government of Alberta

Go to Government of Alberta Home Page