Refunds on oil and natural gas royalties and tax accounts
Publication date: February 22, 2021If an amount is owing to you we will use the credit to offset any new debts on that account. If you wish to use the credit to offset a current or future debt on a different account, please contact your royalty analyst before the next invoice date.
You can request a refund by email to your royalty analyst or Oil&GasRoyaltyQuestions@gov.bc.ca, or through eTaxBC.
Note: Refund requests can only be processed once a full validation of your information is completed.
Interest on overpayments
If there is still a credit on your account after offsetting any new debts, credit interest will accrue from the 61st day after the amount became overpaid.
This also applies to
- any amount identified as overpaid prior to November 1, 2018, but is not yet refunded to you, or credited to your account, and
- amendments on prior periods, where the amendment results in a lower royalty due than you previously reported and paid.
Credit interest is calculated at the prime lending rate less 2%.
Example
Assume your January 2018 gas production period is amended on March 2, 2019 resulting in a lower royalty. The original royalty was due on April 25, 2018:
- If you paid the original royalty in full on April 25, 2018 when it was due, that payment is now an overpayment. You are eligible to receive credit interest from June 25, 2018 (April 25 payment date + 61 days) until the overpayment is used to offset other periods or is refunded to you. The applicable credit interest is calculated at the time the overpayment is used to offset other periods (or when a refund request is processed) and is then credited to your account or refunded to you.
- If you paid the original royalty late on August 2, 2018, then you were charged debit interest from April 26 to August 2, 2018. The amendment takes effect on April 25, 2018 and reduces the amount of debit interest charged for paying late.
This is credited back to your royalty account immediately.
You are eligible to receive credit interest from October 2, 2018 (August 2 payment date + 61 days) until the overpayment is used to offset other periods or is refunded to you. The applicable credit interest is calculated at the time the overpayment is used to offset other periods (or when a refund request is processed) and is then credited to your account or refunded to you.
Oil and natural gas transactions reported in B.C. are reviewed through two processes: validations and audits.