Registration & Security

Taxpayers and partnerships that engage in liquefaction activities at an LNG facility are required to register with the province. Certain taxpayers or partnerships may be exempt from registering, for example, if the taxpayer is exempt from LNG income tax or exempt from registering by regulation.

The commissioner can:

  • register a taxpayer or partnership
  • refuse to register a taxpayer or partnership
  • suspend a taxpayer's or partnership's registration
  • cancel a taxpayer's or partnership's registration

If your registration is refused, suspended or cancelled, the commissioner must provide the reasons and notify every person or partnership registered for that LNG facility. You may appeal a refused, suspended, or cancelled registration.

Collection Bond

Before registering, the commissioner may require you to post a bond. The bond can be used to satisfy any LNG income tax you may owe. If a bond is required and you do not deposit the bond when it is requested, the commissioner will refuse your registration.

A bond can be posted:

  • by you as the registrant
  • by a third party on your behalf
  • by a third party on behalf of a group of taxpayers
  • by a partner on behalf of all members of its partnership

If a bond is deposited by or on behalf of a partnership for its members, the bond must be for only one LNG facility.

Liability for Amounts Owing

You are responsible for any LNG income tax, penalties and interest you may owe.

You may also be jointly and severally liable for other taxpayers’ LNG tax liabilities, depending on their registration status and the registration status of the taxpayers or partnerships with whom:

  • that taxpayer is in partnership, in respect of an LNG facility
  • that taxpayer has entered into transactions, in respect of an LNG facility

If you are required to be registered and you are not, you are liable for any amounts owing by all unregistered taxpayers for that LNG facility.

If you are registered and you transact with an unregistered taxpayer, you are liable for any amounts the unregistered taxpayer owes for that LNG facility. However, you are not liable for any amounts the unregistered taxpayer owes because they transacted with other unregistered taxpayers.

If you are registered and you transact with an unregistered partnership, you are liable for any amounts that any unregistered members of the partnership owe for that LNG facility. However, you are not liable for any amounts the unregistered taxpayer owes because they transacted with other unregistered taxpayers.

If you are registered and a member of a partnership, but not all members of your partnership are registered, you are liable for any amounts that any unregistered members of the partnership owe for that LNG facility. However, you are not liable for any amounts the unregistered taxpayer owes because they transacted with other unregistered taxpayers.

Whether you are jointly and severally liable, and for what amounts, is determined on a taxation year by taxation year basis.

If you are registered by the end of the taxation year that a transaction occurs or that the relevant fiscal period of a partnership ends, you are considered to be a registered taxpayer for the purposes of the joint and several liability provisions.