AR 62/2007 FUEL TAX REGULATION (Consolidated up to 3/2014)
ALBERTA REGULATION 62/2007
Fuel Tax Act
FUEL TAX REGULATION
Table of Contents
1 Interpretation
Fuel Tax
2 No tax is payable
3 Calculation of tax on locomotive fuel 4 Prescribed fuels
5 Direct remitters
6 Tax remittance
7 Prescribed activity
8 Eligibility to apply for fuel tax exemption certificate
9 Application for fuel tax exemption certificate to purchase clear tax‑exempt fuel
10 Application for fuel tax exemption certificate to purchase marked fuel
11 Service charge refundable
12 General matters respecting certificates and cards
13 Credit against assessment
14 Sale of tax-exempt fuel
15 Sale of fuel ‑ special circumstances
16 Sale of marked fuel to non‑consumers
17 Possession of marked fuel
18 Purchases exceeding 300 litres per week
Refund of Tax
19 Prescribed activities
20 Refund of tax ‑ general
21 Refund for bad debts
22 Unverifiable losses
Rebate of Tax
23 Rebate of tax ‑ general
24 Rebate of tax ‑ off‑road uses
25 Rebate of tax ‑ prescribed activities
26 Application of sections 24 and 25
Alberta Farm Fuel Benefit
27 Farm fuel distribution allowance
28 Circumstance for which grant is payable
29 Grant instead of allowance
30 Reimbursement to vendor
30.1 Transitional — reimbursement to vendor
Registration
31 Prescribed activities
32 Application for registration
33 Marking fuel
34 Duty to notify Minister
Records, Invoices, Reports and Returns
35 Keeping records re sellers of fuel
36 Keeping records re refunds, rebates, etc.
37 Keeping records re use of prescribed fuels
38 Place of records
39 Invoices
40 Reports re sales of marked fuel
41 Returns
General Matters
42 Fuel to be volume adjusted
43 Interest
44 Service by Minister or officer
45 Service of notices and documents on Minister
46 Delegation of duty
47 Communication of information
48 Set‑off
50 Repeal
51 Coming into force
Interpretation
1(1) In this Regulation,
(a) “Act” means the Fuel Tax Act;
(b) “air transport service” means a commercial air service that is operated for the purpose of transporting persons or cargo in an aircraft between 2 or more points;
(c) “approval number” means the approval number of a fuel tax exemption certificate;
(d) repealed AR 23/2011 s2;
(e) “bunker fuel” means a crude oil distillate having a viscosity of greater than 5.5 cSt at 40ºC;
(f) “calendar quarter” means a period of 3 months beginning on the first day of January, April, July and October in each calendar year;
(g) “calendar week” means the 7‑day period beginning on Monday and ending on Sunday;
(h) “commercial aircraft” means an aircraft that is used in an air transport service;
(i) “commercial aircraft on an international flight” means a commercial aircraft whose point of departure or point of destination is outside Canada if the flight
(i) originates in Canada and has a destination point outside Canada, and no passengers or cargo are offloaded in Canada after the flight leaves Alberta, or
(ii) originates outside Canada and has a destination or stopover point in Alberta where passengers or cargo are offloaded, if none of the passengers or cargo offloaded in Alberta were loaded onto the aircraft in Canada;
(j) “commercial fisher” means a person who holds a commercial fishing licence under the Fisheries Act (Canada) to fish for commercial purposes;
(k) “condensate” means condensate as defined in the Gas Resources Preservation Act;
(l) “custom farming” means the business of carrying out any step in farming operations on behalf of another person, including the transportation of
(i) required farm machinery to and from the operation location,
(ii) farm inputs, such as water, to a spraying operation, or seed and fertilizer to a seeding operation, and
(iii) farm products from a harvesting operation, such as grain or silage from a harvester, to the location where the farm products are to be stored or used,
but only where the transportation is required to support the custom farming operations and the vehicle used for transportation is registered to the owner of the custom farming operation;
(l.1) “denaturant” means denaturant as defined in the Renewable Fuels Standard Regulation (AR 29/2010);
(m) “dependant”, in relation to another person, means
(i) a spouse or adult interdependent partner of the person,
(ii) a child of the person under 21 years of age who is wholly dependent on the person for support, or
(iii) a child of the person under 25 years of age who
(A) is not married or in an adult interdependent relationship, and
(B) is in full‑time attendance at an accredited educational institution;
(n) repealed AR 23/2011 s2;
(o) “exempt‑sale vendor” means a vendor who is registered under section 22 of the Act to sell tax‑exempt fuel to consumers;
(p) “farm machinery” means any of the following when used by a farmer in farming operations:
(i) any machinery powered by an internal combustion engine or stationary engine;
(ii) a boat or aircraft;
(iii) a vehicle that is not registered under the Operator Licensing and Vehicle Control Regulation (AR 320/2002);
(q) “farm truck” means a vehicle that
(i) is owned or leased by a farmer,
(ii) is used exclusively in the conduct of farming operations, and
(iii) is classified as a Class 2 commercial vehicle and is registered for farm use under the Operator Licensing and Vehicle Control Regulation (AR 320/2002) or, in the case of a farmer who conducts farming operations on land outside Alberta as described in clause (t), is registered for farm use in the jurisdiction where the land is situated;
(r) “farmer” means a person who is actively and directly involved in farming operations in Alberta, where the market value of production from the person’s farming operations, including farm income stabilization payments and crop insurance payments, exceeds annually
(i) $10 000, or
(ii) $5000 where the farmer has no other income other than a pension or supplement as defined in the Old Age Security Act (Canada) or a benefit as defined in the Canada Pension Plan;
(s) “farming operations” means, subject to subsection (2), one or more of the following:
(i) any step in the production of plants or domesticated animals, including animal products or by‑products;
(ii) the harvesting of peat moss;
(iii) custom farming;
(iv) the heating of buildings located on a farm by a farmer;
(v) the personal use of a farm truck by a farmer and the farmer’s dependants;
(vi) the operation of an irrigation district, when carried out by the board of directors of the irrigation district and its employees, but not when carried out by a contractor;
(t) “farming operations in Alberta” includes farming operations conducted on land outside Alberta
(i) where the farmer conducting the operation is
(A) an individual who is a resident of Alberta,
(B) a partnership of which at least 50% is held by partners who are residents of Alberta, or
(C) a corporation of which at least 50% of the shares of the class that, in the opinion of the Minister, has the controlling voting rights are owned by residents of Alberta,
or
(ii) where the farmer conducting the operations combines or integrates them with the farmer’s farming operations on land in Alberta;
(u) “federal identification card” means a card issued under the authority of the Government of Canada indicating that the holder is on the Indian Register under the Indian Act (Canada), if the Minister has agreed with the issuer of the card to accept the card for the purposes of the Act and this Regulation;
(v) “foreign operator” means a foreign operator, within the meaning of the Canadian Aviation Regulations under the Aeronautics Act (Canada), of an air transport service;
(w) “government authority” means
(i) a city, town, village, summer village, municipal district, specialized municipality, improvement district, special area or town under the Parks Towns Act,
(ii) a public college or university as defined in the Post‑secondary Learning Act,
(iii) a Metis settlement,
(iv) a school board, or
(v) a regional health authority;
(x) “identification card” means
(i) a federal identification card, or
(ii) a ministerial identification card;
(y) “Indian” means an Indian as defined in the Indian Act (Canada);
(z) “Indian band” means a band as defined in the Indian Act (Canada);
(aa) “kerosene” means a light petroleum distillate that meets the requirements of National Standard of Canada CAN/CGSB‑3.3‑99, Kerosene, as amended from time to time, but does not include aviation fuel;
(bb) “Minister” means the President of Treasury Board and Minister of Finance, except
(i) in sections 8(4) and 10(2), where it means the Minister of Agriculture and Rural Development, and
(ii) in sections 1(1)(t)(i)(C), 10(4) and (5), 12 and 28, where it means the President of Treasury Board and Minister of Finance or the Minister of Agriculture and Rural Development, as the circumstances require;
(cc) “ministerial identification card” means a fuel tax exemption certificate issued in the form of an identification card by the Minister under section 9;
(dd) “officer” means
(i) a police officer as defined in the Police Act,
(ii) a special constable appointed under the Police Act or, after April 30, 2007, a peace officer appointed under the Peace Officer Act, and
(iii) except in sections 50 and 51 of the Act, any person appointed by the Minister as an officer;
(ee) “off‑road area” means any area in Alberta that is
(i) not a highway as defined in the Traffic Safety Act,
(ii) a licence of occupation road,
(iii) a private road on private or Crown land, or
(iv) a highway under construction, if the road is closed to travel by the public;
(ff) “passenger” means a person, other than a crew member, who is carried on a boat or aircraft;
(gg) “refinery” includes
(i) a facility in Alberta where a product is manufactured or refined from crude oil, bitumen or another petroleum substance into a fuel taxable under the Act,
(ii) except in section 4(3)(a)(i) of the Act, a renewable fuel production facility;
(gg.1) “renewable alcohol” means a fuel described in section 3(1)(a) and (b) of the Renewable Fuels Standard Regulation (AR 29/2010), and includes any denaturant in the fuel and any other additives that account for a total of not more than 1% of the volume of the fuel;
(gg.2) “renewable diesel” means a fuel described in section 3(2)(a) and (b) of the Renewable Fuels Standard Regulation (AR 29/2010), and includes any additives that account for a total of not more than 1% of the volume of the fuel;
(gg.3) “renewable fuel” means renewable alcohol or renewable diesel;
(gg.4) “renewable fuel producer” means a person who owns or operates a renewable fuel production facility in Alberta;
(gg.5) “renewable fuel production facility” means, subject to subsection (10), a facility in Alberta where renewable fuel is produced, manufactured or refined;
(hh) “reserve” means a reserve as defined in the Indian Act (Canada).
(2) The following are not farming operations:
(a) the business of adding value to farm products by manufacturing, packaging, mixing, grinding or otherwise processing them, when carried out by any person other than the farmer who produced them;
(b) subject to subsection (1)(l), the transportation of
(i) farm products by a person other than the farmer who produced them, or
(ii) farm inputs by a person other than the farmer who will use them for farming operations;
(c) the renting out by a lessor of farm land, buildings, livestock, motor vehicles, machinery or other assets, and any activities related to the maintenance or improvement of the rented assets;
(d) the raising of animals or production of feed for animals
(i) commonly kept as pets, or
(ii) for display in a zoo;
(e) the use of farm machinery or farm trucks for a purpose other than farming operations in Alberta;
(f) the use of any vehicle or machinery other than a farm truck or farm machinery;
(g) any activity carried out by a person who is not a farmer;
(h) the business of constructing farm buildings or farm fences by any person other than the farmer using those structures;
(i) the business of providing various services or sales, or both, to a farmer, including but not limited to
(i) banking, accounting, consulting, veterinary and other animal health services, and
(ii) sales and services of various production inputs and farm machinery.
(3) For the purposes of subsection (1)(r), the market value of production from a person’s farming operations is calculated by combining
(a) income from custom farming, and
(b) the value of farm products produced, other than as part of custom farming, regardless of whether the farm products are sold, retained in inventory, consumed by the farmer or the farmer’s dependants or used by the farmer in the course of farming operations.
(4) A person may elect to use an annual average of estimated production, calculated in accordance with subsection (3), for the next 36 months as the basis for determining that person’s market value of production for each of the 12 months within that period.
(5) For the purposes of section 1(n) of the Act, natural gas is excluded from the definition of fuel.
(6) A reference in the Act and this Regulation to a fuel tax exemption certificate includes a ministerial identification card issued under section 9(3).
(7) For the purposes of the Act and this Regulation, “remove fuel from a terminal” means the removal of fuel from a terminal by the owner of the fuel, either by the owner itself or by another person authorized by the owner to remove the fuel.
(8) For the purposes of the Act, “bulk storage tank” means a tank
(a) in which liquefied petroleum gas is stored, and
(b) from which less than 50% of the liquefied petroleum gas is sold directly to consumers.
(9) For the purposes of the Act and this Regulation, fuel that is not marked fuel is clear fuel.
(10) Notwithstanding subsection (1)(gg.5), a facility is not a renewable fuel production facility for the purposes of the Act and this Regulation unless that facility has been so designated by the Minister.
AR 62/2007 s1;68/2008;23/2011;63/2011;31/2012;62/2013
Fuel Tax
No tax is payable
2 For the purposes of section 4(3)(b) of the Act, no tax is payable under that section at the time
(a) fuel is rebranded at a refinery or terminal,
(b) fuel is purchased before it is removed from a refinery or terminal,
(c) fuel, other than renewable fuel, is removed from a refinery or terminal and delivered to another refinery, other than a renewable fuel production facility, or a terminal,
(d) renewable fuel is removed from a refinery or terminal and delivered to another refinery or terminal,
(e) renewable fuel is purchased in Alberta
(i) by a renewable fuel producer from another renewable fuel producer, or
(ii) by a renewable fuel producer from a full direct remitter,
or
(f) renewable fuel is imported into Alberta for delivery to a renewable fuel production facility.
AR 62/2007 s2;23/2011
Calculation of tax on locomotive fuel
3 Every recipient who operates a locomotive shall calculate the amount of fuel used in Alberta in accordance with a method approved or established by the Minister.
Prescribed fuels
4 For the purposes of section 11(1)(a) of the Act, the following are prescribed fuels:
(a) renewable diesel;
(b) renewable alcohol;
(c) the following fuels when used to generate motive power by means of an internal combustion or turbine engine:
(i) bunker fuel;
(ii) kerosene;
(iii) methanol;
(iv) condensate.
AR 62/2007 s4;23/2011
Direct remitters
5(1) Subject to subsection (2), a recipient described in section 12(2) of the Act is a direct remitter only when the person carries out an activity described in section 12(2) of the Act.
(2) For the purposes of section 4(3)(a) of the Act and this Regulation, a direct remitter is a full direct remitter if the direct remitter
(a) operates a refinery in Alberta, other than a renewable fuel production facility or a refinery that solely refines one or more prescribed fuels referred to in section 4, or
(b) manufactures, refines or acquires in, or imports into, Alberta not less than a total of 500 million litres of clear fuel annually.
AR 62/2007 s5;23/2011
Tax remittance
6(1) Subject to this section, a direct remitter shall remit any tax payable by the direct remitter in a calendar month so that it is received by the Minister not later than 28 days following the end of that calendar month.
(2) Every recipient who is an interjurisdictional carrier shall remit any tax payable in a calendar quarter by the recipient so that it is received by the Minister not later than the last day of the month following the end of that calendar quarter.
(3) Every recipient who operates a locomotive shall remit any tax payable in a calendar month by the recipient so that it is received by the Minister not later than 28 days following the end of that calendar month.
(4) A full direct remitter who
(a) purchases fuel from another full direct remitter under section 4(3)(a)(ii) of the Act, or
(b) purchases renewable fuel from a renewable fuel producer under section 4(3)(a)(ii.1) of the Act
shall remit the tax payable on that fuel so that it is received by the Minister not later than 28 days following the end of the calendar month in which the fuel was purchased.
(4.1) A renewable fuel producer who purchases renewable fuel under section 2(e) shall remit the tax payable on that fuel so that it is received by the Minister not later than 28 days following the end of the calendar month in which the fuel was purchased.
(4.2) Subsections (4) and (4.1) do not apply to fuel that is in inventory at the
(a) full direct remitter’s refinery or terminal, or
(b) renewable fuel producer’s renewable fuel production facility
at the end of the calendar month in which the fuel was purchased.
(5) The Minister may require a direct remitter to remit tax earlier than the date stipulated under this section by providing a direction in writing to that effect to the direct remitter.
(6) The Minister may require a direct remitter to provide security satisfactory to the Minister in an amount not exceeding 3 times the estimated tax to be remitted by the direct remitter in each calendar month.
(7) Where a recipient is required under section 12 of the Act to remit tax to the person who supplied the recipient with fuel, the Minister may instead direct the recipient to remit the tax directly to the Minister in the time and manner specified by the Minister.
(8) A person who is liable under section 18, 19 or 20 of the Act to pay tax and the amount of any farm fuel distribution allowance received by the person shall remit the tax and the amount of the farm fuel distribution allowance to the Minister within 7 days from the date the tax and the amount of the farm fuel distribution allowance becomes payable.
AR 62/2007 s6;23/2011
Prescribed activity
7 For the purposes of section 12(2)(h) of the Act, the use of a prescribed fuel referred to in section 4(c) to generate motive power by means of an internal combustion or turbine engine is a prescribed activity.
Eligibility to apply for fuel tax exemption certificate
8(1) For the purposes of sections 8 and 9 of the Act, the following consumers are eligible to apply to the Minister for a fuel tax exemption certificate to purchase clear tax‑exempt fuel from an exempt‑sale vendor for the following prescribed purposes or uses:
(a) a consumer for the purpose of purchasing liquefied petroleum gas from a distributor of liquefied petroleum gas for use in mining operations in Alberta;
(b) an Indian or Indian band for the purpose of purchasing fuel on
(i) a reserve, or
(ii) a place referred to in subsection (2) before April 1, 2008 or such later date as the Minister determines
for personal use by the Indian or for use by the Indian band, as the case may be.
(2) For the purposes of subsection (1)(b), the places on which an Indian or Indian band may purchase clear tax‑exempt fuel are as follows:
(a) on the settlement known as the Garden River settlement, located in the southwest corner of Wood Buffalo National Park;
(b) on the land legally described as Plan 0322267, Block 1, Lot 1, excepting thereout all mines and minerals, as long as that land is owned by Heart Lake Natural Resource Development Incorporated on behalf of the Heart Lake First Nation.
(3) For the purposes of sections 8 and 9 of the Act, a consumer, including a farmer, is eligible to apply to the Minister for a fuel tax exemption certificate to purchase marked fuel from an exempt‑sale vendor for the following prescribed purposes or uses in Alberta:
(a) for commercial purposes for use in an engine owned or operated by the consumer, other than an engine
(i) that drives a motor vehicle, boat or aircraft, or
(ii) that solely regulates the temperature in a trailer or container used for the commercial transportation of goods
and then only if the fuel is in the fuel system of the engine or is being transported or kept in storage by the person for use in such an engine;
(b) for commercial purposes for use in a motor vehicle that is not required to be licensed or registered under any provincial or federal enactment in respect of its operation, and then only if the fuel is in the fuel system of the motor vehicle or is being transported or kept in storage for use in the motor vehicle;
(c) for use by a government authority in an engine owned or operated by the government authority other than an engine that drives a motor vehicle, boat or aircraft, and then only if the fuel is in the fuel system of the engine or is being transported or kept in storage by the person for use in the engine;
(d) for use by a government authority in a motor vehicle that is not required to be licensed or registered under any provincial or federal enactment in respect of its operation, and then only if the fuel is in the fuel system of the motor vehicle or is being transported or kept in storage for use in the motor vehicle;
(e) to produce heat or light other than in
(i) a motor vehicle, boat or aircraft,
(ii) a locomotive, or
(iii) a trailer or container used for the commercial transportation of goods;
(f) for any purpose other than burning it in an internal combustion or turbine engine.
(4) For the purposes of sections 8, 9 and 16 of the Act, a farmer is eligible to apply to the Minister for a fuel tax exemption certificate to purchase marked fuel at the reduced price from an exempt‑sale vendor for farming operations in Alberta carried on by the farmer.
AR 62/2007 s8;63/2011
Application for fuel tax exemption certificate to purchase clear tax‑exempt fuel
9(1) A consumer who is eligible under section 8(1) to apply for a fuel tax exemption certificate may do so in a form and manner specified by the Minister.
(2) On receipt of an application under subsection (1), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(3) If the Minister approves the application, the Minister shall issue a fuel tax exemption certificate except where the applicant is an Indian or Indian band, in which case the Minister shall issue a fuel tax exemption certificate in the form of a ministerial identification card containing an approval number.
(4) The Minister shall not issue a ministerial identification card to an Indian if the Indian is less than 16 years old.
(5) The Minister shall not issue a ministerial identification card to an Indian band unless all or part of the Indian band’s reserve is in Alberta or unless the Indian band has an office in Alberta.
(6) The Minister may, on any conditions specified by the Minister, issue multiple ministerial identification cards to an Indian band for use by its employees or agents.
Application for fuel tax exemption certificate to purchase marked fuel
10(1) A consumer who is eligible under section 8(3) to apply for a fuel tax exemption certificate may do so in a form and manner specified by the Minister.
(2) A farmer who is eligible under section 8(4) to apply for a fuel tax exemption certificate may do so in a form and manner specified by the Minister.
(3) A person may not apply for a fuel tax exemption certificate under subsection (1) or (2) if the person already holds, or has made application for, a certificate under the other subsection.
(4) On receipt of an application under subsection (1) or (2), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(5) If the Minister approves the application, the Minister shall issue a fuel tax exemption certificate containing an approval number.
Evidence of exemption
11(1) For the purposes of sections 8 and 18 of the Act, the following are prescribed types of evidence authorizing the following consumers to purchase clear tax‑exempt fuel from an exempt‑sale vendor for the following prescribed purposes or uses:
(a) if the consumer is an Indian, a federal identification card to purchase fuel on a reserve or a place referred to in section 8(2) for personal use by the Indian;
(b) if the consumer is the armed forces of another country stationed in Alberta, documentation satisfactory to the Minister showing the consumer’s status and authorizing the consumer to purchase fuel for use by the armed forces in Alberta;
(c) if the consumer is the Government of Canada, documentation satisfactory to the Minister authorizing the consumer to purchase fuel for use by the Government of Canada;
(d) if the consumer is a foreign operator of an air transport service, documentation satisfactory to the Minister that the operator qualifies as a foreign operator under the Aeronautics Act (Canada), which authorizes the consumer to purchase aviation fuel for use in a commercial aircraft on an international flight.
(2) For the purposes of section 8(1) of the Act, a valid approval number is prescribed evidence of the fuel tax exemption certificate that contains the approval number when the approval number is presented by the person to whom the fuel tax exemption certificate was issued.
General matters respecting certificates and cards
12(1) A fuel tax exemption certificate expires on the earliest of
(a) the expiry date shown on the certificate,
(b) the date the person to whom the certificate was issued ceases to conduct activities that qualify the person to obtain the certificate, and
(c) the date the certificate is cancelled by the Minister.
(2) The Minister may, where the Minister considers it appropriate to do so, extend the expiry date of a fuel tax exemption certificate or any series of certificates.
(3) The Minister may amend an approval number at any time on notice to the holder of the fuel tax exemption certificate and, on amendment, the previous approval number ceases to have any force or effect.
(3.1) No individual who has been issued a ministerial identification card shall sell or give that card to another person or permit another person to use the card for the purposes of section 8(1)(b).
(3.2) Subject to subsection (3.3), no person shall possess a ministerial identification card that has been issued or is in the name of another person.
(3.3) No Indian band who has been issued a ministerial identification card shall sell or give the card to another person or permit another person to use the card for the purposes of section 8(1)(b) unless
(a) the person is an authorized representative of the Indian band,
(b) the person is using the ministerial identification card to purchase fuel for and on behalf of the Indian band, and
(c) the person and Indian band comply with any conditions placed on the ministerial identification card by the Minister.
(4) For the purposes of sections 9 and 10, the Minister may refuse to issue a fuel tax exemption certificate if
(a) the Minister determines that the applicant does not meet the requirements of section 9 or 10, as the case may be,
(b) the Minister determines that the applicant has contravened the Act or this Regulation or any other enactment that provides for the imposition of a tax or levy,
(c) the applicant has already been issued a valid fuel tax exemption certificate,
(d) the applicant has an overdue debt to the Crown,
(e) in the case of an applicant who is a farmer, the Minister determines that the applicant has provided an unreasonable estimate of production under section 1(4), or
(f) the Minister determines that some or all of the information provided on the application is false or misleading.
(5) The Minister may suspend or cancel a fuel tax exemption certificate if
(a) the Minister determines that the holder no longer meets the requirements of section 9 or 10, as the case may be,
(b) the Minister determines that the holder of the fuel tax exemption certificate has contravened the Act or this Regulation or any other enactment that provides for the imposition of a tax or levy,
(c) the holder of the fuel tax exemption certificate has an overdue debt to the Crown,
(d) the fuel tax exemption certificate has been lost, stolen, destroyed or is unusable due to damage,
(e) the Minister determines that information provided to the Minister by the holder of the fuel tax exemption certificate is false or misleading, or
(f) the Minister believes that the ministerial identification card has been sold to, or is in the possession of or being used by, a person other than the person to whom it was issued or an authorized person pursuant to subsection (3.3).
(6) The Minister may declare a federal identification card to be invalid for the purposes of the Act and this Regulation if
(a) the Minister determines that the holder of the federal identification card has contravened the Act or this Regulation or any other enactment that provides for the imposition of a tax or levy, or
(b) the holder of the federal identification card has an overdue debt to the Crown.
(7) If the Minister has suspended or cancelled a fuel tax exemption certificate, or has declared a federal identification card to be invalid, the Minister shall notify the holder of the certificate or card and any relevant exempt‑sale vendors of that fact.
(8) A fuel tax exemption certificate is valid until it expires under subsection (1) or (2) unless the certificate is suspended or cancelled under subsection (5).
(9) The suspension or cancellation of a fuel tax exemption certificate suspends or cancels, as the case may be, the approval number of that certificate.
(10) If the Minister declares a federal identification card to be invalid for the reason referred to in subsection (6)(b) and the debt is subsequently paid, the Indian or Indian band may apply under section 9 for a fuel tax exemption certificate in the form of a ministerial identification card.
(11) The Minister may reinstate a fuel tax exemption certificate that was suspended under subsection (5).
(12) If a fuel tax exemption certificate is reinstated under subsection (11), the Minister shall notify the holder of the certificate and any relevant exempt‑sale vendors of that fact.
(13) If a ministerial identification card has been cancelled for the reason referred to in subsection (5)(f) and the Indian or Indian band, as the case may be, satisfies the Minister that the identification card has not been sold or is not in the possession of or being used by someone other than the person to whom it was issued or an authorized person under subsection (3.3), the Minister shall issue a replacement card.
AR 62/2007 s12;63/2011
Credit against assessment
13(1) If a ministerial identification card issued under section 9 has been suspended or cancelled or the Minister has declared a federal identification card to be invalid for the reason referred to in section 12(6)(b), the Minister may, after receiving an application in a form specified by the Minister, credit against the amount of the overdue debt
(a) the amount of taxes paid under the Act,
(b) the amount of taxes or amount of a penalty equal to taxes paid under the Tobacco Tax Act, or
(c) the amount of tourism levies paid under the Tourism Levy Act
on any subsequent purchase of fuel, tobacco or accommodation, as the case may be.
(2) A credit under subsection (1) may be given only if the sale of the fuel, tobacco or accommodation would otherwise be a tax‑exempt sale under the Act, the Tobacco Tax Act or the Tourism Levy Act, as the case may be, except for the fact that the person’s ministerial identification card has been suspended or cancelled or the person’s federal identification card has been declared to be invalid, as the case may be.
(3) If the amount of a credit exceeds the amount of the overdue debt, the Minister shall refund any excess amount of tax paid to the person who paid the tax.
Sale of tax‑exempt fuel
14(1) Subject to subsections (2) and (3), an exempt‑sale vendor shall, before selling tax‑exempt fuel to a consumer,
(a) verify the consumer’s fuel tax exemption certificate or approval number or other evidence of exemption with the Minister in a manner specified by the Minister,
(b) in the case where the consumer presents a fuel tax exemption certificate or approval number, record the approval number, and
(c) take reasonable steps to ensure that the fuel is intended for a prescribed purpose or use.
(2) If the consumer is an Indian, the exempt‑sale vendor shall
(a) record the approval number of the ministerial identification card or, if the Indian presents a federal identification card, the number that appears on the federal identification card, and
(b) take reasonable steps to ensure that the consumer is the person identified on the identification card, and the fuel is for personal use.
(3) If the consumer is an Indian band, the exempt‑sale vendor shall
(a) record the approval number of the ministerial identification card, and
(b) take reasonable steps to ensure that the fuel is intended for Indian band purposes and is paid for by the band.
(4) An exempt‑sale vendor shall, before selling fuel to a farmer at the reduced price,
(a) verify the farmer’s fuel tax exemption certificate or approval number with the Minister in a manner specified by the Minister,
(b) record the approval number, and
(c) take reasonable steps to ensure that the fuel is intended for farming operations in Alberta.
(5) An exempt‑sale vendor shall report sales of tax‑exempt fuel to the Minister in the time and manner specified by the Minister.
(6) The Minister may require an exempt‑sale vendor to complete a voucher in a form specified by the Minister
(a) in circumstances where an Indian or Indian band has purchased more than 300 litres of fuel in a calendar week, or
(b) in any other circumstance specified by the Minister.
(7) The Minister may require an exempt‑sale vendor to provide proof that the exempt‑sale vendor has purchased and paid for fuel sold exempt from tax before paying a refund to the vendor under section 14 of the Act in respect of that fuel.
Sale of fuel ‑ special circumstances
15(1) If the Government of Canada purchases clear tax‑exempt fuel, it may, if authorized in writing by the Minister, sell the fuel to the Town of Banff or the Municipality of Jasper.
(2) Fuel sold under subsection (1) is deemed to be a rebrand by the Government of Canada from clear tax‑exempt fuel to taxable fuel.
Sale of marked fuel to non‑consumers
16 A person registered to sell marked fuel shall, before selling marked fuel to a recipient other than a consumer, verify in a manner specified by the Minister that the recipient is eligible to be in possession of marked fuel.
Possession of marked fuel
17 For the purposes of section 20(1)(b) of the Act, a person is eligible to be in possession of marked fuel if
(a) the person is registered under section 22 of the Act to mark fuel or sell marked fuel,
(b) the person is an authorized employee or agent of a person referred to in clause (a) in the carrying out of the employee’s duties,
(c) the person is in possession of the marked fuel for the purpose only of transporting it to a person referred to in clause (a) or (b) or section 20(1)(a) of the Act, and then only in a container that is not connected to any fuel system of an internal combustion engine in or on a motor vehicle or railway car transporting marked fuel in a way that permits the marked fuel to enter or be used as fuel in that fuel system,
(d) the person is a purchaser of a farm truck or farm machinery, and then only if the marked fuel is in the fuel system of the farm truck or farm machinery at the time of its delivery to the purchaser,
(e) the person is an officer or other person employed or engaged in the administration or enforcement of the Act or this Regulation, and then only for purposes related to the administration or enforcement of the Act or this Regulation,
(f) the person operates a fuel testing facility designated by the Minister, or
(g) the person is authorized in writing by an officer to be in possession of marked fuel.
Purchases exceeding 300 litres per week
18(1) An Indian or Indian band who purchases more than 300 litres of clear tax‑exempt fuel in a calendar week shall
(a) at the time of purchase,
(i) advise the vendor that the weekly purchases of the Indian or Indian band, as the case may be, have exceeded 300 litres of tax‑exempt fuel, and
(ii) advise the vendor of the intended use of that fuel,
and
(b) maintain records of the use of that fuel.
(2) If an Indian or Indian band fails to provide the information required under subsection (1), any purchases of more than 300 litres of fuel per week are presumed not to be for personal use or use by the Indian band, as the case may be.
Refund of Tax
Prescribed activities
19 For the purposes of section 14(2)(b)(v) of the Act, the prescribed persons and prescribed circumstances are the following:
(a) tax was charged or remitted, or both, in error by a recipient;
(b) the recipient’s fuel was unsaleable due to contamination;
(c) liquefied petroleum gas was sold by a vendor to a consumer from a system other than one used to dispense liquefied petroleum gas for use as a motive fuel and was used for a purpose other than as a motive fuel;
(d) tax was remitted in respect of fuel sold to a recipient other than a consumer on credit where all or a portion of the amount of the debt in respect of the sale is a bad debt.
Refund of tax ‑ general
20(1) This section applies in respect of a refund of tax under section 14 of the Act except in respect of a refund for a bad debt to which section 21 of this Regulation applies.
(2) Subject to this section, an application for a refund of tax under section 14 of the Act must
(a) be made in a form and manner specified by the Minister,
(b) be accompanied with invoices and any other records and documents required by the Minister
(i) to prove the claim, and
(ii) to determine the amount of fuel tax to be refunded,
and
(c) subject to subsections (3) to (5), be received by the Minister not later than 3 years from the end of the year in which the circumstance giving rise to a claim for a refund has occurred.
(3) An application for a refund of tax under section 14(2)(b)(iii) of the Act must be received by the Minister within one year from the date the fuel was stolen or destroyed.
(4) An application for a refund of tax paid by an exempt‑sale vendor in respect of tax‑exempt sales of clear fuel to Indians and Indian bands must be made every calendar week using electronic means of a type or class specified by the Minister in accordance with instructions specified by the Minister.
(5) An application for a refund of tax paid by a vendor of liquefied petroleum gas relating to tax‑exempt sales to consumers or sales on which no tax is payable under the Act must
(a) be made using electronic means of a type or class specified by the Minister in accordance with instructions specified by the Minister, and
(b) be made no more frequently than weekly.
(6) Notwithstanding subsections (4) and (5), the Minister may accept an application for a refund that is in a paper form authorized by the Minister.
(7) On receipt of an application under this section, the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(8) If the Minister determines that the applicant is entitled to a refund, the Minister shall pay the refund in the amount determined by the Minister under subsection (9).
(9) Subject to subsection (10), the amount of refund the Minister may pay under subsection (8) is equal to the amount of tax paid under the Act by the claimant on the volume of fuel eligible for a refund.
(10) The amount of refund the Minister may pay under subsection (8) in respect of fuel that was rebranded to a fuel with a lower tax rate or no tax rate or to a non‑taxable product is the difference between the tax paid on the fuel before it was rebranded and the tax rate applicable on the fuel after it was rebranded.
Refund for bad debts
21(1) In this section, “bad debt” means a debt owing by a purchaser, other than a consumer, to a recipient that is established by the recipient to have become uncollectible and that has been included in computing the recipient’s income for the current or a preceding taxation year for the purposes of the Income Tax Act (Canada).
(2) For the purposes of subsection (1), a debt is not uncollectible unless the recipient
(a) has exhausted all efforts to collect the debt that would reasonably be expected to be made by a creditor who is dealing at arm’s length with a debtor, and
(b) in the case of a bankruptcy or receivership of a debtor, has filed a claim with the trustee or receiver that includes the amount of the fuel tax owing shown separately.
(3) For the purposes of subsection (2)(a), a recipient has not exhausted all efforts to collect the debt if the recipient continues to sell fuel on credit to the person after the recipient has established that the debt owing by that person has become uncollectible.
(4) An application for a refund of tax under section 14 of the Act in respect of a bad debt must
(a) be made in a form and manner specified by the Minister,
(b) be accompanied with invoices and any other records and documents required by the Minister
(i) to prove the claim, and
(ii) to determine the amount of fuel tax to be refunded,
and
(c) be received by the Minister within 90 days after the earlier of
(i) the date that a notice of the bankruptcy or notice of the appointment of a receiver is received by the applicant, and
(ii) the date that the debt has been written off as a bad debt in the applicant’s books of account.
(5) On receipt of an application under this section, the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(6) If the Minister determines that the applicant is entitled to a refund, the Minister shall pay the refund in the amount determined by the Minister in accordance with subsection (7).
(7) The amount of refund that the Minister may pay under subsection (6) is to be calculated in accordance with the following formula:
Amount of Refund = x C
where
A is the amount of the uncollectible debt at the time of the application;
B is the original amount of the debt at the time of sale;
C is the amount of tax that was remitted relating to the sale.
(8) If a recipient receives a refund of tax in respect of a bad debt, but manages to collect full or partial payment of the debt, the recipient shall pay back to the Minister that portion of the refund related to the amount of the debt so collected calculated in accordance with the following formula:
Portion of Refund = x C where
A is the amount of debt collected;
B is the amount of uncollectible debt at the time of the application for refund;
C is the amount of the refund received under this section.
(9) When a refund is paid under this section, the Minister is subrogated to the rights of the applicant to recover that amount from the debtor.
AR 62/2007 s21;63/2011
Unverifiable losses
22 For the purposes of section 14(5)(b) of the Act, the Minister may provide an allowance of 0.25% of the tax payable on the volume of fuel removed from a refinery or terminal by a full direct remitter or renewable fuel producer.
AR 62/2007 s22;23/2011
Rebate of Tax
Rebate of tax ‑ general
23(1) The Minister may pay a rebate under section 15 of the Act in respect of the tax paid on clear fuel used by a consumer for the following prescribed purposes and uses:
(a) fuel used before February 25, 2011 by a licensed commercial fisher in Alberta in a commercial boat for commercial fishing purposes;
(b) if the applicant is an interjurisdictional carrier, fuel purchased by the applicant in Alberta and used outside Alberta in a commercial vehicle that is part of the applicant’s fleet of qualified motor vehicles under the International Fuel Tax Agreement;
(c) fuel purchased in Alberta for its own use by a country or state other than Canada, a political subdivision of that country or state, an agency of that country, state or political subdivision or an accredited person representing that country, state or political subdivision in Canada;
(d) fuel purchased by an Indian or Indian band who would otherwise have been entitled under section 8 of the Act to purchase clear tax‑exempt fuel at a location described in section 8(1)(b) of this Regulation except for the fact that
(i) in the case of an Indian, the Indian’s ministerial identification card has been suspended or cancelled or, if applicable, the Indian’s federal identification card has been declared by the Minister to be invalid, or
(ii) in the case of an Indian band, the Indian band’s ministerial identification card has been suspended or cancelled;
(e) fuel purchased by a consumer, other than an Indian or Indian band, who is entitled to purchase clear tax‑exempt fuel, where a fuel tax exemption certificate or other prescribed evidence of exemption was not, for the reasons acceptable to the Minister, provided at the time the fuel was purchased;
(f) liquefied petroleum gas or aviation fuel used for farming operations in Alberta;
(g) fuel purchased by a member of the Diplomatic Corps if the person is listed in the current edition of Diplomatic, Consular and other Representatives in Canada, as published by the Government of Canada;
(h) fuel used for farming operations in Alberta by a farmer licensed under the International Fuel Tax Agreement in a farm truck that is part of the farmer’s fleet of qualified motor vehicles under the International Fuel Tax Agreement;
(i) fuel purchased in Alberta by the applicant and transported in bulk to a jurisdiction outside Alberta by the applicant, if tax is payable on the fuel in that jurisdiction and the applicant has paid the tax owing;
(j) fuel used in Alberta before February 25, 2011 in a commercial tour boat that is capable of carrying 20 or more passengers;
(k) aviation fuel purchased in Alberta for use by a domestic air transport service in a commercial aircraft on an international flight;
(l) fuel used in Alberta after February 24, 2011 in circumstances in which the Act would have permitted the use of marked fuel, where the Minister is of the opinion that marked fuel was not reasonably available.
(2) An application for a rebate of tax under section 15 of the Act for fuel used for a purpose or use described in subsection (1) must
(a) be made in a form and manner specified by the Minister,
(b) be accompanied with invoices and any other records and documents required by the Minister
(i) to prove the claim, and
(ii) to determine the amount of the rebate,
(c) subject to subsections (3), (4) and (5), be made in respect of each calendar quarter, and
(d) be received by the Minister not later than 3 years after the end of the calendar year in which the fuel was purchased.
(2.1) An application for a rebate under subsection (1)(a) or (j) may be made only in relation to fuel purchased before February 25, 2011.
(3) An application for a rebate for fuel used for a purpose or use described in subsection (1)(d) may, subject to subsection (2)(d), be made at any time.
(4) An application for a rebate for fuel used for a purpose or use described in subsection (1)(f) and (h) may not be made more frequently than every 3 months.
(5) An application for a rebate for fuel used for a purpose or use described in subsection (1)(k) may be made monthly.
(5.1) In order to qualify for a rebate for fuel used in circumstances described in subsection (1)(l), the applicant must have had a fuel tax exemption certificate issued under section 8(3) or (4) at the time of the purchase of the fuel in respect of which the application is made.
(6) On receipt of an application under subsection (2), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(7) If the Minister determines that the applicant is entitled to a rebate, the Minister shall pay the rebate in the amount determined by the Minister in accordance with subsection (8).
(8) The amount of a rebate the Minister may pay under subsection (7) is equal to the amount of tax paid by the claimant on the volume of fuel eligible for the rebate.
AR 62/2007 s23;63/2011
Rebate of tax ‑ off‑road uses
24(1) In addition to the purposes and uses described in section 23, the Minister may pay a rebate of tax under section 15 of the Act on clear fuel used in Alberta before February 25, 2011 by a consumer for the following prescribed purposes and uses:
(a) fuel used in a motor vehicle driven on an off‑road area by a government authority;
(b) fuel used in a motor vehicle licensed or registered in respect of its operation under any provincial or federal enactment that is driven on an off‑road area for commercial purposes;
(c) fuel used for regulating the temperature in a trailer or container used for the commercial transportation of goods, where the trailer or container is located on an off‑road area;
(d) fuel used in circumstances in which the Act would have permitted the use of marked fuel, where the Minister is of the opinion that marked fuel was not reasonably available.
(2) An application for a rebate for fuel used for a purpose or use described in subsection (1) must
(a) be made in a form and manner specified by the Minister,
(b) be made in respect of each calendar quarter,
(c) be accompanied with the following documents satisfactory to the Minister:
(i) in the case of a first application,
(A) invoices or other documents supporting all eligible fuel purchases for the calendar quarter,
(B) documents supporting the consumption rates of fuel used in each activity in all eligible motor vehicles for which the claim is made,
(C) detailed records showing the time spent and the fuel consumed for each activity during the claim period or, alternatively, a survey respecting the time spent and the fuel consumed that is prepared in a form and manner specified by the Minister and using the methodology required by the Minister, and
(D) any additional documents the Minister may require;
(ii) in the case of subsequent applications, any documents that the Minister may require,
and
(d) be received by the Minister not later than 3 years after the end of the calendar year in which the fuel was purchased.
(2.1) For the purposes of subsection (2)(c)(i)(B), the Minister may establish benchmarks respecting consumption rates for particular types of eligible motor vehicles, and where the Minister so directs, those benchmarks must be used instead of any actual consumption rates.
(3) For the purposes of subsection (2), “activity” means the following activities in respect of an eligible motor vehicle:
(a) the motor vehicle is travelling on an off‑road area;
(b) the motor vehicle is travelling on an area other than an off‑road area;
(c) the engine of the motor vehicle is idling while the motor vehicle is on an off‑road area;
(d) the engine of the motor vehicle is idling while the motor vehicle is on an area other than an off‑road area;
(e) if applicable, the power take off of the engine of the motor vehicle is in use while the motor vehicle is on an off‑road area;
(f) if applicable, the power take off of the engine of the motor vehicle is in use while the motor vehicle is on an area other than an off‑road area;
(g) the engine of the motor vehicle is shut off.
(4) In order to apply for a rebate under this section, the consumer must first apply for enrolment with the Minister, in a form and manner specified by the Minister.
(5) If the Minister approves the enrolment, the enrolment is effective from the date determined by the Minister.
(6) The Minister may refuse an application for enrolment or cancel an enrolment if the Minister determines that the consumer is not eligible or is no longer eligible to be enrolled under this section.
(6.1) An application for a rebate under this section may only be made in relation to fuel purchased before February 25, 2011.
(7) In order to qualify for a rebate for fuel used in circumstances described in subsection (1)(d), the applicant must have had a fuel tax exemption certificate issued under section 8(3) or (4) at the time of the purchase of the fuel in respect of which the application is made.
(8) An applicant who is licensed under the International Fuel Tax Agreement during the claim period may not apply for a rebate under this section until the applicant has filed a return under the International Fuel Tax Agreement covering the period for which the rebate is claimed.
(9) On receipt of an application under subsection (2), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(10) If the Minister determines that the applicant is entitled to a rebate, the Minister shall pay the rebate in the amount determined by the Minister in accordance with subsection (11).
(11) The amount of a rebate the Minister may pay under subsection (10) is equal to the amount of tax paid by the claimant on the volume of fuel eligible for the rebate.
AR 62/2007 s24;63/2011
Rebate of tax - prescribed activities
25(1) In this section, “prescribed” means prescribed by the Minister.
(2) Subject to this section, the Minister may pay a rebate of tax under section 15 of the Act on clear fuel used in Alberta before February 25, 2011 by a consumer to carry out a prescribed activity using a prescribed motor vehicle or prescribed equipment.
(3) The Minister may prescribe the specific percentage of fuel used that is eligible for a rebate for a prescribed activity.
(4) In order to apply for a rebate under this section, the consumer must first apply for enrolment with the Minister, in a form and manner specified by the Minister, on or before the later of
(a) one year from the date the Minister prescribes the activity under which the consumer is eligible to apply for a rebate, and
(b) one year from the date the consumer begins using fuel to conduct the prescribed activity.
(5) If the Minister approves the enrolment, the enrolment is effective from the date determined by the Minister.
(6) The Minister may refuse an application for enrolment or cancel an enrolment if the Minister determines that the consumer is not eligible or is no longer eligible to be enrolled under this section.
(7) Notwithstanding subsection (4), if the Minister considers it appropriate to do so, the Minister may enrol a consumer after the deadline under subsection (4) has expired if the consumer provides the Minister with detailed fuel tracking records showing the amount and type of fuel used in a prescribed motor vehicle or prescribed equipment to conduct a prescribed activity.
(8) An application for a rebate under this section must
(a) be made in a form and manner specified by the Minister in respect of each calendar quarter,
(b) be received by the Minister not later than 3 years after the end of the calendar year in which the fuel was purchased, and
(c) be accompanied with any documents that the Minister may require.
(9) An applicant is eligible for a rebate under this section only in relation to that fuel for which the placement is tracked to a prescribed motor vehicle or prescribed equipment used to conduct a prescribed activity.
(9.1) Subject to subsection (9.2), a person enrolled under this section may apply for a rebate under this section in relation to fuel used in circumstances in which the Act would have permitted the use of marked fuel, where the Minister is of the opinion that marked fuel was not reasonably available.
(9.2) In order to qualify for a rebate for fuel used in circumstances described in subsection (9.1), the applicant must have had a fuel tax exemption certificate issued under section 8(3) or (4) at the time of purchase of the fuel in respect of which the application is made.
(9.3) An application for a rebate under this section may be made only in relation to fuel purchased before February 25, 2011.
(10) An applicant who is licensed under the International Fuel Tax Agreement during the claim period may not apply for a rebate under this section until the applicant has filed a return under the International Fuel Tax Agreement covering the period for which the rebate is claimed.
(11) On receipt of an application under subsection (8), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(12) If the Minister determines that the applicant is entitled to a rebate, the Minister shall pay the rebate in the amount determined by the Minister in accordance with subsection (13).
(13) The amount of a rebate for each prescribed activity the Minister may pay under subsection (12) is to be determined in accordance with the following formula:
R = F x L x T
where
R is the amount of the rebate for that activity;
F is the specific percentage of fuel used that is eligible for rebate for that activity;
L is the amount of fuel used in litres for that activity;
T is the amount of tax per litre paid on the fuel for that activity.
AR 62/2007 s25;63/2011
Application of sections 24 and 25
26(1) A consumer who uses fuel for one or more purposes or uses described in section 24, but does not conduct any prescribed activities under section 25, may apply for enrolment and rebates under section 24, and is not eligible to apply for enrolment and rebates under section 25.
(2) A consumer who conducts only prescribed activities under section 25 may apply for enrolment and rebates under that section, and is not eligible to apply for enrolment and rebates under section 24.
(3) If a consumer uses fuel for one or more purposes or uses described in section 24 and also conducts one or more prescribed activities under section 25, the following rules apply:
(a) the consumer must apply to the Minister, in a form and manner specified by the Minister, for a determination as to whether the consumer may enrol and claim rebates under section 24 or 25, or under both sections;
(b) if the Minister determines that the consumer may enrol and claim rebates under both sections and the consumer enrols under both sections, the consumer must
(i) allocate in a manner approved by the Minister the fuel for which a rebate is claimed between the purposes and uses described in section 24 and the prescribed activities under section 25, and
(ii) reconcile the fuel for which the claims are made in a manner approved by the Minister;
(c) a determination made by the Minister under this subsection is binding on the consumer and is subject to any terms and conditions imposed by the Minister.
Alberta Farm Fuel Benefit
Farm fuel distribution allowance
27(1) For the purposes of section 16 of the Act and sections 29(6)(a), 30(5)(a) and 30.1(1), the prescribed amount of the farm fuel distribution allowance is $0.06 per litre of marked diesel, marked renewable diesel or heating fuel.
(2) For the purposes of section 16 of the Act and sections 29(6)(b) and 30(5)(b), the prescribed amount of the farm fuel distribution allowance is $0.00 per litre of fuel.
AR 62/2007 s27;23/2011;3/2014
Circumstance for which grant is payable
28(1) For the purposes of section 16(3) of the Act, the prescribed circumstance for which the Minister may pay a grant is that the fuel was used by a farmer for farming operations in Alberta and marked fuel was not reasonably available in the Minister’s opinion.
(2) In addition to the circumstance described in subsection (1), the Minister may, on application, pay a grant in respect of marked fuel used by a farmer for farming operations in Alberta where the farmer holds a fuel tax exemption certificate issued under section 8(3) instead of section 8(4).
AR 62/2007 s28;63/2011
Grant instead of allowance
29(1) An application for a grant under section 28
(a) must be made in a form and manner specified by the Minister,
(b) must be accompanied with invoices and other documents required by the Minister to determine the amount of the grant and the applicant’s eligibility,
(c) may not be made more frequently than every 3 months, and
(d) must be received by the Minister not later than 3 years after the end of the year in which the purchase was made.
(2) An application for a grant under section 28
(a) may relate only to diesel, renewable diesel or heating fuel purchased while the applicant held a fuel tax exemption certificate, and
(b) may not be made if the applicant purchased the fuel at the reduced price.
(3) An applicant who is licensed under the International Fuel Tax Agreement during the claim period may not apply for a grant under this section until the applicant has filed a return under the International Fuel Tax Agreement covering the period for which the application is to be made.
(4) On receipt of an application under subsection (1), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(5) If the Minister determines that the applicant is entitled to a grant, the Minister shall pay the grant in the amount determined by the Minister in accordance with subsection (6).
(6) The amount of a grant that the Minister may pay under subsection (5) is equal to the number of litres of fuel used for farming operations in Alberta multiplied by
(a) the amount prescribed in section 27(1), if the fuel was purchased before 3:15 p.m. on March 7, 2013, or
(b) the amount prescribed in section 27(2), in any other case.
AR 62/2007 s29;23/2011;3/2014
Reimbursement to vendor
30(1) An application for a reimbursement under section 16(5) of the Act must
(a) be made using electronic means of a type or class specified by the Minister in accordance with instructions specified by the Minister, and
(b) be received by the Minister not later than 3 calendar years after the end of the year in which the benefit of the farm fuel distribution allowance was passed on to the consumer under section 10 of the Act.
(2) Notwithstanding subsection (1), the Minister may accept an application for a reimbursement that is in a paper form authorized by the Minister.
(3) On receipt of an application under subsection (1) or (2), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(4) If the Minister determines that the applicant is entitled to a reimbursement, the Minister shall pay the reimbursement in the amount determined by the Minister in accordance with subsection (5).
(5) The amount of the reimbursement the Minister may pay under subsection (4) is equal to
(a) the amount of the farm fuel distribution allowance passed on to the consumer under section 10 of the Act, if the amount was passed on to the consumer for fuel purchased before 3:15 p.m. on March 7, 2013, or
(b) the amount prescribed in section 27(2), in any other case.
AR 62/2007 s30;3/2014
Transitional – reimbursement to vendor
30.1(1) Notwithstanding section 27(2) and section 30(5)(b), where the Minister receives an application under section 16(5) of the Act from a vendor stating that the vendor has, under section 10 of the Act, passed on to a consumer the amount of the benefit of a farm fuel distribution allowance calculated under section 27(1) in respect of fuel supplied by the vendor, the Minister may reimburse the vendor for the amount of the benefit passed on if the Minister is satisfied that
(a) the vendor incurred a loss as a result of passing on the benefit,
(b) the vendor passed on the benefit within a reasonable period on or after 3:15 p.m. on March 7, 2013, and
(c) it is reasonable in all of the circumstances to provide the reimbursement.
(2) In applying subsection (1), the Minister may determine
(a) for the purposes of subsection (1)(a), what constitutes a loss and whether the vendor incurred a loss,
(b) for the purposes of subsection (1)(b), when the vendor passed on the benefit and what is a reasonable period, and
(c) what are reasonable circumstances for the purposes of subsection (1)(c).
AR 3/2014 s5
Registration
Prescribed activities
31 For the purposes of section 22(1)(f) of the Act, the sale in bulk of bunker fuel, kerosene, methanol or condensate is a prescribed activity.
Application for registration
32(1) A person to whom section 22(1) of the Act applies shall
(a) apply to be registered in a form and manner specified by the Minister, and
(b) provide such information as the Minister requires.
(2) A vendor of liquefied petroleum gas shall apply under section 22 of the Act in respect of each location at which the vendor sells liquefied petroleum gas on which there is no tax payable under the Act.
(3) A person who wishes to be registered under section 22 of the Act as an exempt‑sale vendor must
(a) apply to the Minister in respect of each location at which the person intends to sell tax‑exempt fuel, and
(b) meet the criteria established by the Minister for qualification as an exempt‑sale vendor.
(3.1) On receipt of an application under this section, the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(3.2) If the Minister is satisfied with the application, the Minister shall register the person.
(4) A person registered under this section is subject to the terms and conditions imposed, from time to time, by the Minister.
AR 62/2007 s32;63/2011
Marking fuel
33(1) A person who wishes to mark fuel must apply to the Minister in a form and manner specified by the Minister for registration to mark fuel.
(2) On receipt of an application under subsection (1), the Minister shall review the application and may request additional information to determine the applicant’s eligibility.
(3) If the Minister approves the application, the Minister shall register the person to mark fuel.
(4) A person who has been registered to mark fuel shall mark the fuel only in accordance with the Minister’s instructions.
(5) A person other than
(a) a person registered to mark fuel, or
(b) a consumer
who accidentally mixes clear and marked fuel shall notify the Minister of the mixture and take any action that the Minister so directs.
Duty to notify Minister
34 A registrant or a consumer who applies for a rebate under section 24 or 25, or a consumer who holds a fuel tax exemption certificate, shall immediately notify the Minister if
(a) in the case of a registrant, the registrant ceases to carry on business or to carry on that part of the registrant’s business for which the registrant was registered,
(b) in the case of a consumer enrolled under section 24 or 25, the consumer ceases to carry on the purpose or use that qualify the consumer to apply for a rebate,
(c) in the case of a consumer who holds a fuel tax exemption certificate, the consumer ceases to conduct activities that qualify the consumer to apply for a fuel tax exemption certificate,
(d) the registrant or consumer is the subject of proceedings relating to bankruptcy, insolvency or receivership,
(e) in the case of a registrant or consumer that is a corporation, the registrant
(i) amalgamates with another corporation,
(ii) is wound up, liquidated or dissolved, or
(iii) is subject to any proceedings under the Companies’ Creditors Arrangement Act (Canada),
or
(f) in the case of a registrant or consumer that is a partnership, there is a change in the partners of the partnership.
Records, Invoices, Reports and Returns
Keeping records re sellers of fuel
35(1) Except where subsection (2) applies, a seller of fuel, including a vendor, shall keep
(a) complete and accurate records of
(i) the number of litres of each type and grade of fuel purchased,
(ii) the number of litres of each type and grade of fuel refined or manufactured,
(iii) the number of litres of each type and grade of fuel sold,
(iv) the number of litres of each type and grade of fuel, if any, used by the seller for the seller’s own personal purposes,
(v) the number of litres of each type and grade of fuel in inventory at the end of each month, and
(vi) other transactions in fuel showing separately the amount in litres of each type and grade of fuel,
and
(b) complete and accurate records on a daily basis of the amount in litres of each type and grade of aviation fuel, liquefied petroleum gas or marked fuel that the seller
(i) produces,
(ii) transfers to another seller,
(iii) delivers outside Alberta, or
(iv) marks.
(2) A seller, including a vendor, of bunker fuel, kerosene, methanol or condensate shall keep complete and accurate records of
(a) the number of litres of each type of fuel sold, and
(b) the purchasers of each type of fuel and the number of litres of each type of fuel purchased by each purchaser.
(3) In addition to the records that must be kept under subsection (1), a distributor of liquefied petroleum gas shall keep complete and accurate records of totalizer readings.
(4) A recipient who is an interjurisdictional carrier shall keep complete and accurate records of
(a) its purchases of each type of fuel,
(b) its inventory of each type of fuel,
(c) the distances travelled by its qualified motor vehicles,
(d) the amount of fuel used by its qualified motor vehicles, and
(e) any other records relevant to establish the tax payable under the Act.
(5) A recipient who operates a locomotive in Alberta shall keep complete and accurate records of
(a) its purchases of each type of fuel,
(b) its inventory of each type of fuel,
(c) the distance travelled by the locomotive,
(d) the amount of fuel used in the locomotive,
(e) the amount of fuel used in Alberta by the recipient in a vehicle other than a locomotive, and
(f) any other records relevant to establish the tax payable under the Act.
Keeping records re refunds, rebates, etc.
36(1) A person who receives a refund, rebate, allowance, grant or reimbursement under the Act or this Regulation shall keep
(a) complete and accurate records of the person’s
(i) purchases, possession and disposition of fuel,
(ii) activities relating to the purchases and uses of the fuel, and
(iii) motor vehicles, engines and other equipment in which the fuel was used,
and
(b) all documents relating to and supporting the claim for a refund, rebate, allowance, grant or reimbursement.
(2) Every person who is required to keep records under subsection (1) shall keep them for
(a) 6 years from the end of the calendar year in which the fuel was purchased, or
(b) 4 years from the end of the calendar year in which the refund, rebate, allowance, grant or reimbursement was paid,
whichever is the later.
(3) A consumer who purchases marked fuel shall keep complete and accurate records of the consumer’s
(a) activities relating to the purchases and uses of the marked fuel, and
(b) motor vehicles, engines and other equipment in which the marked fuel was used.
(4) Every consumer who is required to keep records under subsection (3) shall keep them for 6 years from the end of the calendar year in which the marked fuel was purchased.
Keeping records re use of prescribed fuels
37(1) A person who uses a prescribed fuel described in section 4(c) shall keep complete and accurate records respecting the
(a) activities relating to the purchases and uses of the fuel, and
(b) engines in which the fuel was used.
(2) Every person who is required to keep records and documents under subsection (1) shall keep them for 6 years from the end of the calendar year in which the fuel was used.
Place of records
38(1) A person required to keep records under section 35, 36 or 37 shall keep the records at the person’s place of business or residence in Alberta or at any other place with the written approval of the Minister.
(2) Where records are created electronically, the person required to keep the records shall ensure that the person maintains a system that enables the records to be read and printed.
Invoices
39(1) A vendor shall, in respect of each sale of taxable clear fuel, prepare an invoice showing the following:
(a) the name and address of the vendor;
(b) the date of sale;
(c) the amount in litres of each type of fuel sold.
(2) A vendor shall, in respect of each sale of tax‑exempt fuel, prepare an invoice showing the following:
(a) the name and address of the vendor;
(b) the name of the purchaser;
(c) the date of sale;
(d) the amount in litres of each type of fuel sold;
(e) the total selling price and a statement that the selling price does not include fuel tax;
(f) in the case of a sale to a farmer for use in farming operations in Alberta, the amount of the farm fuel distribution allowance.
(3) A recipient, other than a vendor or a consumer, shall, in respect of each sale of fuel, prepare an invoice or other documentation showing the following:
(a) the name and address of the seller;
(b) the name of the purchaser;
(c) the date of sale;
(d) the rate per litre of fuel tax included in the selling price or the amount of tax charged, or both, or that the fuel was sold exempt from tax;
(e) the amount in litres of each type of fuel sold.
(4) A seller, including a vendor, shall retain one copy of an invoice or other documentation prepared under this section and provide one copy to the person to whom the fuel is sold.
Reports re sales of marked fuel
40(1) A person registered to sell marked fuel shall report each sale of marked fuel to the Minister
(a) by electronic means in the time and manner specified by the Minister, or
(b) if the Minister agrees, in paper form
not later than 28 days following the calendar month in which the sale occurred.
(2) Subsection (1) does not apply if
(a) the person is selling the marked fuel as agent for the owner of the fuel, and
(b) the owner is required to report the sale of marked fuel under subsection (1).
(3) A report filed in electronic form is deemed to have been received by the Minister on the day the Minister acknowledges that
(a) the report has been received, and
(b) the report is in the form specified by the Minister.
(4) A person registered to sell marked fuel shall
(a) reconcile the volumes of marked fuel it purchases, sells and has in its inventory in the manner specified by the Minister,
(b) reconcile a report to be provided under this section with a return to be provided under section 41 in a manner specified by the Minister, and
(c) provide a reconciliation made under clause (a) or (b) to the Minister within the time specified by the Minister.
(5) Subsection (4) does not apply if
(a) the person is selling the marked fuel as agent for the owner of the fuel, and
(b) the owner is required to reconcile the volumes of marked fuel under subsection (4).
Returns
41(1) Subject to subsections (2) and (2.1), a direct remitter shall, in respect of operations or activities in each calendar month, including a month in which no operations or activities have occurred, submit to the Minister a return in a form and manner specified by the Minister so that it is received by the Minister not later than 28 days following the end of each calendar month.
(2) A direct remitter who
(a) uses a prescribed fuel referred to in section 4(c), or
(b) purchases fuel in the circumstances described in section 4(2)(c) of the Act
is not required to file a return under subsection (1) for any month in which no activity has occurred.
(2.1) The Minister may establish a threshold for particular operations or activities, and if a direct remitter engages in those operations or activities falling under that threshold, the direct remitter may, instead of submitting returns under subsection (1), submit to the Minister a return in a form and manner specified by the Minister so that it is received by the Minister not later than 28 days following the end of each calendar quarter.
(3) An interjurisdictional carrier shall, in respect of fuel purchased in Alberta and fuel used in its qualified motor vehicles during each calendar quarter, submit to the Minister a return in the form specified by the Minister so that it is received by the Minister not later than the end of the next month following the calendar quarter.
(4) A registrant other than a direct remitter shall, if required by the Minister, submit to the Minister a return in a form and manner and within the time specified by the Minister.
(5) The Minister may require or permit a return to be submitted in electronic form.
(6) A return filed in electronic form is deemed to have been received by the Minister on the day the Minister acknowledges that
(a) the return has been received, and
(b) the return is in the form specified by the Minister.
(7) Notwithstanding subsection (1), if the Minister requires a return to be filed electronically, the Minister may specify the time in which the return is to be submitted.
AR 62/2007 s41;23/2011
General Matters
Fuel to be volume adjusted
42 A person removing fuel, other than liquefied petroleum gas, from a refinery or a terminal shall volume adjust the fuel to a temperature of 15ºC.
Interest
43(1) Subject to this section, interest that is payable under the Act is
(a) simple interest at the rate prescribed for the purposes of section 39 of the Alberta Corporate Tax Act, and
(b) payable under the Act from the day on which an amount is owed until the day on which the amount is received by the Minister.
(2) Interest is payable on an amount assessed under section 23 of the Act from the day on which the amount was to be remitted to the Minister until the day on which the Minister receives the amount assessed.
(3) Interest is payable on an amount owing under section 24 of the Act from the day the amount was first owed until the day on which the Minister receives the amount owing.
(4) Interest is payable on an amount owing by an interjurisdictional carrier in accordance with the International Fuel Tax Agreement.
(5) Interest is payable on the amount of a penalty unpaid under section 26 of the Act from the date of the notice of assessment until the day on which the Minister receives the amount owing.
(6) No interest is payable on any amount payable by the Minister under the Act or regulations, including, without limitation, on a refund, rebate, allowance or grant.
AR 62/2007 s43;63/2011
Service by Minister or officer
44(1) Except where the Act or this Regulation provides otherwise, where a notice or other document is to be served on or is to be sent or given to a person by the Minister or an officer under the Act or this Regulation, the notice or document may be served on or sent or given to
(a) a person other than a corporation or cooperative,
(i) by being mailed to the person by ordinary or registered mail addressed to the person to whom the notice or document is directed at that person’s last address known to the Minister,
(ii) by personal service, or
(iii) if the person has provided the Minister with a fax number, by fax to that number,
(b) a corporation,
(i) in accordance with section 256 of the Business Corporations Act,
(ii) by registered mail addressed to the corporation at the corporation’s last address known to the Minister, or
(iii) if the person has provided the Minister with a fax number, by fax to that number,
and
(c) a cooperative,
(i) in accordance with section 347 of the Cooperatives Act,
(ii) by registered mail addressed to the cooperative at the cooperative’s last address known to the Minister, or
(iii) if the person has provided the Minister with a fax number, by fax to that number.
(2) If the person on or to whom a notice or other document is to be served, sent or given under the Act or this Regulation carries on business under a name or style other than the person’s own name, the notice or document,
(a) for the purposes of being mailed or faxed, may be addressed to the name or style under which the person carries on business, and
(b) for the purposes of personal services, is deemed to have been served if it has been left with an adult person employed at the place of business of the person to whom the notice or document is directed.
(3) If the persons on or to whom a notice or other document is to be served, sent or given under the Act or this Regulation carry on business in partnership, the notice or document,
(a) for the purposes of being mailed or faxed, may be addressed to the partnership name, and
(b) for the purposes of personal services, is deemed to have been served if it
(i) has been served on one of the partners, or
(ii) is left with an adult person employed at the place of business of the partnership.
Service of notices and documents on Minister
45(1) Except where the Act or this Regulation provides otherwise, every return, notice or other document required to be served on or filed with the Minister under the Act or this Regulation may be sent to the Minister by ordinary mail, registered mail, fax, electronic means specified by the Minister or delivered by hand.
(2) Subject to subsection (3), all documents served or filed pursuant to subsection (1) are deemed to have been served or filed on the date they are actually received by the Minister.
(3) A return mailed by an interjurisdictional carrier is deemed to have been received by and filed with the Minister on the date shown on the cancellation mark stamped by the Canada Post Corporation or by the national postal service of the United Mexican States or the United States of America, or an equivalent national delivery service, on the envelope that contains the return, or the date the envelope was mailed, if satisfactory proof is available to establish the date of mailing.
Delegation of duty
46(1) A person who wishes to delegate the legal responsibility to remit tax owing under the Act, or to do anything else that the person is required to do under the Act or this Regulation, to another person may apply to the Minister for approval for the delegation in the manner specified by the Minister.
(2) An application under subsection (1) must be signed by
(a) the person wishing to delegate the responsibility, and
(b) the delegate.
Communication of information
47(1) For the purposes of section 63(4)(a) of the Act, the Minister may disclose to a registrant information about
(a) another registrant,
(b) a person holding a fuel tax exemption certificate, or
(c) a person whose registration or fuel tax exemption certificate has been suspended or cancelled.
(2) For the purposes of section 63(4)(b) of the Act, the Minister may disclose to a duly authorized employee or agent of the Government of Alberta or an officer any information required to conduct an inspection, investigation, audit or examination under the Act or this Regulation.
(3) For the purposes of section 63(5) of the Act, the Minister may publish the information described in that subsection in paper form or by electronic means.
(4) For the purposes of section 63(5)(d) of the Act, the prescribed information is
(a) the effective date of the registration,
(b) if a registration has been cancelled or suspended, the end date of the registration,
(c) the registrant’s operating name, if different from the registrant’s legal name, and
(d) the registrant’s business contact information.
(5) The information described in subsection (4) and section 63(5) of the Act may be published from the effective date of a registration until one year after the registration has been cancelled or suspended.
(6) The Minister may publish or disclose to any person for any purpose readily available summarized or statistical information that cannot, directly or indirectly, be associated with or identify a particular individual or other person.
Set‑off
48 Any refund, rebate or other amount the Minister is required to pay under this Regulation is subject to section 32 of the Act.
49 Repealed AR 63/2011.
Repeal
50 The Fuel Tax Regulation (AR 388/87) is repealed.
Coming into force
51 This Regulation comes into force on April 1, 2007.
