and Revenue Administration
Information Circular TL-3
|| Alberta Treasury Board and Finance,
Tax and Revenue Administration
|For more information:
/ November 2005
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.
ALBERTA TOURISM LEVY
ACT INFORMATION CIRCULAR:
This Information Circular discusses
the following topics:
- Hotel, motel and other accommodation
operators who file returns will be issued a Statement of Account
showing the Tourism Levy assessed and the payment received for
a collection period. Where the levy remains unpaid, interest will
accrue until payment is received. A Notice of Assessment may be
issued to reflect adjustments made during processing.
- Operators who fail to collect or
remit the levy may be assessed the amount of levy not collected
or remitted. Assessment can be made for levies payable within
four years from the day the levy became payable or was required
to be remitted and will include interest and any applicable penalties.
- If an operator or purchaser has:
an assessment can be issued for any
levy payable or required to be remitted plus interest and penalties
at any time after the normal four year statute-barred period.
- made any misrepresentation attributable
to neglect, carelessness or wilful default,
- committed a fraud in making
a return or supplying information under the Act or regulation,
- failed to disclose any relevant
- Interest is charged on overdue amounts
by operators at the rate prescribed under the Tourism Levy
Act, which is the debit interest rate prescribed under the
Alberta Corporate Tax Act.
- Liability for the Tourism Levy imposed
by the Act is not affected by an incorrect or incomplete return,
or no assessment having been made. Tax and Revenue Administration
(TRA) can assess a Tourism Levy payable whether or not a return
or information is provided to TRA.
- Every operator assessed must, within
30 days from the date on the Notice of Assessment, pay the amount
assessed whether or not an objection or appeal is filed with TRA
or a court.
- Where an operator owes an amount
under the Act and TRA is of the opinion that the reason for the
amount owing is attributable to:
TRA can determine the amount owing
by the operator and assess a penalty equal to 25% of the amount
- negligence, carelessness or
wilful default by, or on behalf of, the operator, or
- fraud or evasion was committed
by, or on behalf of, the operator,
- The Act allows an authorized officer
to examine or inspect, at any reasonable time, any documents that
may be relevant to determination of Tourism Levy liability under
the Act. The documents may include, but are not limited to:
- documents the operator is required
to keep under the Act or regulation;
- documents or records of any
person that may relate to the information that is, or should
be, in the records of the operator; and
- any document of any person relating
to any levy payable under the Act.
- No one may hinder or interfere with
anyone authorized to inspect or audit documents under the Act.
TRA may demand any information
necessary to administer or enforce the Act or the regulation.
A demand is made in the form of a notice and may be served personally
or by registered mail. If the demand is not complied with, TRA
may apply to the Court of Queen's Bench for an order directing
the person to comply with the demand.
- The Tourism Levy collected by an
operator is due on or before the 28th day of the month following
the end of the collection period. If payment is not received,
collection follow-up will begin after the Notice of Assessment
has been sent to the operator.
- Where TRA demands payment of the
amount of levy owing and the penalty, the demand constitutes proof
the amount is owing to the Crown.
- TRA may also issue a certificate
of amounts not paid. When such a certificate is filed with the
Court, it has the same force and effect as a judgment of the Court
in the stated amount. Proceedings to enforce payment may be taken.
- Failure by an operator to pay an
amount owing may result in action by TRA to garnishee amounts
due the operator by others or the seizure of assets owned by the
- If an operator is unable to make
immediate full payment and TRA is of the opinion the payment of
the levy is in jeopardy, TRA may request security for the amount
owing. The cost of providing such security is the responsibility
of the operator. Interest continues to accrue on unpaid amounts
of the Tourism Levy even if security has been provided.
- An operator may object to:
- any assessment of the Tourism
Levy, penalty or interest assessed; or
- TRA's refusal to register an operator
or suspension or cancellation of an operator's registration.
- A separate Notice of Objection must
be completed, in the prescribed form, for each assessment or reassessment,
Notice of Refusal, suspension, or cancellation of registration.
The objection must be served on TRA within 90 days from the date
of mailing of the notification to which the objection relates.
If sent by registered mail, the date of registering the mail must
be within the specified 90-day period. The date TRA receives the
objection applies for any other means of service.
Notice of Objection
forms are available on the TRA website or by telephoning
TRA at one of the listed telephone numbers. The completed
notice should be sent to:
TAX SERVICES BRANCH
TAX AND REVENUE ADMINISTRATION
9811 – 109 STREET
EDMONTON AB T5K 2L5
- When an objection has been properly
submitted, TRA reviews the objection and may vacate, confirm,
or vary the assessment or serve a new notice of its decision concerning
the refusal, cancellation, or suspension of an operator's registration.
- If an operator has not filed an
objection within 90 days, the Act allows the operator to apply
for an extension of time to file an objection. The application,
accompanied by a copy of the Notice of Objection, must be served
on TRA within one year from the expiration of the 90-day limit
for serving a Notice of Objection. If sent by registered mail,
the date of registering the mail must be within the specified
time period. The date TRA receives the application applies for
any other means of service.
- The application must demonstrate
- the operator was unable to act
(or instruct another to act on its behalf) within the 90-day
limit for filing the objection, or intended in good faith
- given the reasons set out in
the application and circumstances of the case, it would be
just and equitable to grant the application; and
- the application was made as
soon as circumstances permitted.
The application should be sent
to TRA at the address shown above.
- Where an application for an extension
of time to file an objection has been refused, or TRA has not
replied to the request within 90 days of being served, the Act
allows an operator to apply to the Court of Queen's Bench to have
the application granted.
- An operator who has served an objection
on TRA and has not received a decision from TRA within 90 days
of service of the objection or who wishes to appeal TRA's decision
may file a Notice of Appeal with the Court of Queen's Bench. An
appeal is commenced by serving a Notice of Appeal on TRA by registered
mail, together with a copy of the Notice of Objection. A copy
of each document must also be filed with the Clerk of the Court.
- The Court can dismiss an appeal,
vary, or confirm the assessment that is the subject of the appeal,
or refer the assessment back to TRA for reconsideration.
under the Act
- It is an offence under the Act for
an operator or its representative to:
- make false statements on returns,
destroy or alter documents required under the Act or conspire
with another person to evade payment or claim a refund greater
than that to which the operator is entitled.
- fail to file a return or provide
information when required by the Act or regulations.
- fail to collect and remit the
levy as required.