Tax Interpretation Manual: Carbon Tax Act - Sections

Last updated on November 1, 2023

Section 1 – Interpretation

CTA - SEC. 1/Assessment/Int.

“Assessment”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “assessment” includes a reassessment. This is the standard definition of “assessment” used in consumption tax statutes. For more information, see SSTA/SEC. 1/ASSESSMENT/Int.

CTA - SEC. 1/Biodiesel/Int.

“Biodiesel”

References: Section 1 “combustible”, “fuel”; Section 13; Regulation 44

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, repealed the definition of “biodiesel”.

When the Carbon Tax Act initially came into force, biodiesel was not a taxable fuel under the Act. This was consistent with government’s policy of encouraging the use of biodiesel, and other biofuels, by either not taxing them, or taxing them at a preferential rate.

However, government later chose to pursue the same policy with a different tool, mandating a percentage of fuel sold in the province be “biofuel” or “renewable fuel”. The renewable fuel requirement for diesel is a five percent annual average which is being phased in over a three year period under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act:

Three percent average starting January 1, 2010;
Four percent average starting January 1, 2011; and
Five percent average starting January 1, 2012.

Effective July 1, 2008, biodiesel was defined as a substance that is made up of mono-alkyl esters of long chain fatty acids derived from plant or animal matter. This was the same definition as found in the Motor Fuel Tax Act Regulations.

The Act taxes “fuels” and “combustibles”. When the exemption for biodiesel was in effect, biodiesel was not a fuel or combustible under the Act because it was excluded from the definition of “fuel” and not included in the exhaustive definition of “combustible”.

Despite the exemption, a blend or mixture of biodiesel and one or more fuels may have been subject to carbon tax. For instance, under Section 13, tax applies to the fuel portion of a blend or mixture. However, under Regulation 44, certain fuels are excluded from being treated as blends or mixtures.

CTA - SEC. 1/Int.

"Biomethane"

Reference: Section 1 "biomethane credit," Section 13.1, Section 14.1, Section 14.2, Section 14.3, Regulation 22.1, Regulation 22.2, Regulation 22.3, Regulation 22.4, Regulation 22.5, Regulation 22.6, Regulation 22.7

Interpretation (Issued: 2012/03)

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 adds a definition for "biomethane."

Biomethane is defined as "methane produced from biomass." Biomass typically includes agricultural and other organic wastes.

The definition was added for the purposes of the biomethane credit program.

CTA - SEC. 1/Int.

"Biomethane Credit"

Interpretation (Issued: 2012/03)

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 adds a definition for "biomethane credit."

Biomethane credit means a credit provided under Section 14.1.

The definition was added for the purposes of the biomethane credit program.

CTA - SEC. 1/Board Member/Int.

“Board Member”

Reference: Section 50

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “board member” means both:

(1) a member of a board of directors of a corporation; and,

(2) a person deemed under Section 50 to be a member of a board of directors of a corporation.

This is the standard definition used in the consumption tax statutes.

Section 50 allows the director to deem certain persons to be board members of a corporation provided certain criteria are met. For more information, see CTA/SEC. 50/Int.

CTA - SEC. 1/Buy/Int.

“Buy”

References: Section 1 “purchaser”, “retail dealer”, “sell”; Section 30; Motor Fuel Tax Act Section 1 “buy”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “buy” includes, but is not limited to, obtaining ownership by barter or exchange.

This definition clarifies that buying fuel or combustibles is not limited to purchases for monetary consideration but includes acquisition by barter or exchange.

As a result, “purchaser” includes a person who acquires property by barter or exchange (for their own consumption or use). Also, a person who provides fuel to a purchaser by barter or exchange is a “retail dealer”.

The original intent of this provision was to capture fuel swaps. However, fuel swaps between certain collectors (refiner collectors) are exempt from the security requirement (see CTA/SEC. 30/Int.).

See also CTA/SEC. 1/SELL/Int. regarding the related definition of “sell”.

CTA - SEC. 1/Collector/Int.

“Collector”

References: Section 1 “combustible”, “fuel”, “refiner collector”; Section 16; Motor Fuel Tax Act Section 1 “collector”

Interpretation (Issued: 2011/11)

Effective January 1, 2009, Bill 2, Budget Measures Implementation Act (No. 2), 2009 amended the definition of “collector” to mean a person appointed under subsection 16(1), and no longer the entire Section 16. This amendment was consequential to the addition of “refiner collectors” to the Act. See CTA/SEC. 16/Int.

Effective July 1, 2008, “collector” was defined to mean a person appointed under Section 16.

A collector that owns and operates a crude oil refinery in Canada, or is interrelated with such an entity, may apply to the director to become, in addition to being a collector, a “refiner collector”. A refiner collector for a specific type of fuel may sell that fuel to another refiner collector without paying or charging security (see Sections 16(2.1), 16(2.2) and 30(3)).

A seller of a combustible is not a vendor; therefore a seller of a combustible cannot be a collector regarding the combustible. “Combustible” is a defined term under Section 1 of the Act and is distinct from “fuel”.

CTA - SEC. 1/Combustible/Int.

“Combustible”

References: Section 1 “fuel”; Section 12; Section 13; Schedule 2; Regulation 13

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “combustible” means an item or material set out in column 2 of the table in Schedule 2. There are three combustibles – peat, tires (whole) and shredded tires. A combustible is distinct from a “fuel”, which is separately defined in Section 1.

Under Section 12, a person who burns a combustible in the province to produce energy (including heat) must pay tax on the combustible at the rate set out in Schedule 2.

Under Section 13, a person who burns a mixture of one or more combustibles and one or more other non-taxable substances must pay tax on the amount of combustible burned.

Regulation 13 prescribes how tax on combustibles is to be remitted.

Combustibles are not subject to the security scheme.

CTA - SEC.1/Common Carrier/Int.

Common Carrier

References:

Act: Section 1 "common carrier"; Section 14; Section 31

Bulletin MFT-CT 001

Interpretation (Issued: 2017/05)

Effective March 1, 2016, Bill 10, Budget Measures Implementation Act, 2016 added a definition of "common carrier" to section 1 that was removed from section 14 of the Act.

CTA - SEC. 1/Deputy Collector/Int.

“Deputy Collector”

References: Section 1 “wholesale dealer”; Section 17; Motor Fuel Tax Act Section 1 “deputy collector”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “deputy collector” is defined to mean a person who is deemed to be appointed as a deputy collector under Section 17.

To be deemed to be appointed as a deputy collector under Section 17, a person must:

(a) Be a “wholesale dealer”, and

(b) Buy fuel from a collector or deputy collector.

CTA - SEC. 1/Director/Int.

“Director”

Reference: Motor Fuel Tax Act Section 1 “director”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “director” is defined to mean a person appointed by the Minister of Finance to administer the Act. This is the same definition for director used in the Motor Fuel Tax Act.

The director is appointed under Section 69.

Under Section 70, the director may, in writing, delegate any of her powers or duties under the Act.

The powers of the director under the Act and Regulations include:

To create forms;
To appoint vendors as collectors (Section 16);
To issue a registration certificate to a retail dealer, which enables the retail dealer to sell natural gas (marketable natural gas and propane prior to January 1, 2010; natural gas and propane from January 1, 2010 to June 30, 2010) (Section 19);
To issue a registered consumer certificate (Section 20; Regulation 4);
To issue a registered air or marine service certificate (Section 21; Regulations 5 and 6);
To suspend or cancel an appointment or a certificate (Section 23);
To receive tax (Section 28);
To receive security (Sections 30, 31 and 32);
To receive inventory reports (Section 35);
To issue a refund of tax or security (Sections 36 and 37; Regulations 25, 26, 29);
To provide a refund in relation to bad debts (Section 38; Regulation 24);
To provide a refund in relation to interjurisdictional air or marine transport or travel (Section 39; Regulations 27 and 28);
To receive claims for a refund (Section 41);
To enter business premises at a reasonable time to carry out an audit or inspection for the purposes of the Act or Regulations (Section 43);
To make an estimate of unremitted tax or unpaid security (Section 44);
To assess a person for tax or security (Section 45);
To impose a penalty on a person who was required to, but has failed to, collect tax (Sections 46 and 47);
To issue a refund where an excess of penalty is paid (Section 48);
To determine if a person is, in fact, a board member of a corporation (Section 50);
To issue a notice of assessment (Sections 51 and 52);
To have the director’s estimates, assessments or determinations of a penalty protected from variance or disallowance by a court (Section 54);
To require a bond from a collector, holder of a motive fuel user permit, a retail dealer of marketable natural gas or propane, a registered consumer, registered air service or registered marine service (Section 59);
To proceed summarily for an amount owing (Section 61);
To demand payment from a party the director knows or suspects is or is about to become indebted to a taxpayer (Section 63);
To register a lien against a taxpayer (Section 64);
To given notice of action to enforce payment (Section 66);
To apply for an injunction to prohibit a fuel seller from selling fuel (Section 68);
To demand information for the purposes of the Act (Section 72);
To determine conversion rates for a fuel or combustible (Section 74);
To create evidence for the prosecution of offences (Section 75);
To designate a person as an analyst for the purpose of enforcement of the Act (Section 77);
To change the reporting period for collectors, retail dealers of marketable natural gas or propane, registered consumers, registered air services and registered marine services, a person required to pay tax on transfer or importation of fuel, from monthly to quarterly or annually (Regulations 8, 10, 11, 12 and 13);
To authorize the early destruction of records (Regulation 32);
To authorize (a) a registered air service, (b) a registered marine service, or (c) a registered consumer who is an interjurisdictional air service, to keep and retain records outside the province (Regulation 33);
To estimate the number of kilometres an IFTA commercial vehicle will travel in British Columbia for the purpose of determining a deposit for an IFTA commercial vehicle (Regulation 39);
To issue a refund in relation to an IFTA deposit (Regulation 40.1); and,
To pay an inventory allowance in the amount of $250 to a deputy collector or retail dealer who provides an inventory under subsections 35(1) or 88(4) of the Act (Regulations 42 and 43).

Certain decisions of the director may be appealed to the minister (Section 56 and Part 8 of the Act generally and Regulation 41.8 regarding a refusal to issue, or the cancellation of, an exempt fuel retailer permit).

CTA - SEC. 1/Farmer/Int.

"Farmer"

References: Section 14

Interpretation (Issued: 2014/08)

Effective January 1, 2014, Bill 2 - Budget Measures Implementation Act, 2013 added a definition of "farmer."

The definition of farmer is added for the purposes for the new carbon tax exemption for farmers in subsection 14(2) and refund in section 39.1.

"Farmer" is defined to have the same meaning as in section 1 of the Motor Fuel Tax Act.

CTA - SEC. 1/Fuel/Int. – R.2

“Fuel”

Reference: Schedule 1

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 repealed and replaced the definition of “fuel”. The effect of this change is that ethanol, biodiesel and other biofuels are no longer excluded from the definition.

This change was consequential to the imposition of a five per cent renewable fuel standard (RFS) under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act effective January 1, 2010. The RFS requires that the total volume of gasoline and diesel class fuels (i.e., light fuel oil) sold in the province contain an average of five per cent renewable fuel.

As a result of the RFS, the carbon tax rates for gasoline and light fuel oil (including diesel fuel, locomotive fuel, heating oil, and industrial oil) were each reduced by five per cent. Additionally, effective January 1, 2010, the carbon tax applies to ethanol at the same rate as gasoline, and to renewable diesel fuel at the same rate as light fuel oil. Renewable diesel fuel includes both biodiesel and hydrogenated-derived renewable diesel fuel.

Effective July 1, 2008, “fuel” was defined to mean the fuels set out in Schedule 1 of the Act but did not include the following:

(a) Ethanol and methanol produced from biomass,

(b) Biodiesel and other biofuels, and

Biofuels was not a defined term. Generally, the ministry considered biofuels to be fuels that humans have made by an industrial process from plant or animal matter.

Methane derived from wood, or other organic matter, by a human-made process, was a biofuel. For example, methane manufactured from mountain pine-beetle damaged wood qualified as a biofuel.

Schedule 1 defines a number of fuels, and then lists taxable fuels in a Table. See CTA/SCHEDULE 1/Int.

R.1 Ethanol (Issued: 2011/11)

Effective January 1, 2010, the carbon tax applies to ethanol at the same rate as gasoline. See CTA/SEC. 1/FUEL/Int.

Prior to January 1, 2010, ethanol was excluded from the definition of “fuel” under the Act and therefore was technically not subject to tax. However, under federal requirements, pure ethanol cannot be transported and typically is “denatured” with up to five per cent gasoline. The ethanol portion of an ethanol blend was not subject to carbon tax; however, the gasoline portion used to denaturize the ethanol in the blend was taxable.

For example, ethanol 85 (E85) is typically a mix of 85 per cent “denatured” ethanol and 15 per cent gasoline. Under paragraph 13(1)(a), the gasoline used to denaturize the ethanol portion of the blend (up to 5 per cent of the ethanol portion) plus the 15 per cent of the blend that was gasoline was taxable. This means over 20 per cent of E85 could have been taxable under the Act.

R.2 Tank Bottoms (Issued: 2011/11)

“Tank bottoms” is the name given to the sludge at the bottom of (a typically large) heavy fuel oil container. For instance, a company may store large volumes of marketable heavy fuel oil in tanks, sell that fuel, leaving sludge at the bottom of the tank. This sludge is a taxable fuel if it fits the technical definition of a Schedule 1 fuel, and is taxed accordingly.

Purchasing heavy fuel oil in the form of tank bottoms and refining it into another grade of heavy fuel oil qualifies as producing or upgrading “another fuel” for the purposes of the Regulations (see, in particular, Regulation 16).

The ministry’s interpretation is that where one fuel is used to produce or upgrade another fuel of the same Schedule 1 type that is superior in quality, “another fuel” has been produced.

CTA - SEC. 1/IFTA Commercial Vehicle/Int.

“IFTA Commercial Vehicle”

References: Section 14; Regulation 2 “IFTA commercial vehicle”; Motor Fuel Tax Act Section 1 “IFTA commercial vehicle”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “IFTA commercial vehicle” is defined to have the prescribed meaning.

The prescribed meaning is the same as that given in the Motor Fuel Tax Act and its regulations, and is set out in Regulation 2.

Under Section 14, fuel used in a licenced IFTA commercial vehicle is exempt from carbon tax. However, an amount equivalent to carbon tax is levied as motor fuel tax, and is in addition to other motor fuel tax, under the Motor Fuel Tax Act. Effectively, the carbon tax was shifted to the Motor Fuel Tax Act. This was done because when the Act was enacted, it was considered administratively simpler to levy all fuel taxes applicable to licensed IFTA commercial vehicles under one Act.

CTA - SEC. 1/Litre/Int.

“Litre”

Reference: Motor Fuel Tax Act Section 1 “litre”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “litre” means:

(a) one cubic decimeter (10 centimeters cubed), for liquids; and

(b) 0.5 kilograms, for liquefied petroleum gas.

This definition is the same definition as in the Motor Fuel Tax Act.

“manufacture”

Reference: Motor Fuel Tax Act Section 1 “manufacture”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “manufacture” includes, but is not limited to, the production, refining or compounding of fuel. This definition is the same definition as in the Motor Fuel Tax Act.

The definition of “manufacture” in Division 13 of the Social Service Tax Act Regulation was not adopted for the purposes of the Act, because the contexts in which the term is used in the two Acts are different. The term is defined in relation to a specific exemption in the Social Service Tax Act Regulation regarding the purchase of machinery or equipment, and is defined under the Carbon Tax Act for the purpose of classifying production inputs, other than machinery and equipment.

CTA - SEC. 1/Month/Int.

“Month”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of "month" is defined to mean a calendar month.

This definition is the same definition as in the Motor Fuel Tax Act.

CTA - SEC. 1/Motive Fuel User Permit/Int.

“Motive Fuel User Permit”

References: Motor Fuel Tax Act Section 1 “motive fuel user permit”; Motor Fuel Tax Act Section 16

Interpretation (Issued: 2011/11)

Effective July 1, 2008, "motive fuel user permit" is defined to mean a motive fuel user permit issued under the Motor Fuel Tax Act.

Under Section 16 of the Motor Fuel Tax Act, a motive fuel user permit is required when a commercial carrier enters the province in an IFTA qualified commercial vehicle that is not licensed under IFTA.

CTA - SEC. 1/Motor Vehicle/Int.

“Motor Vehicle”

Reference: Motor Fuel Tax Act Section 1 “motor vehicle”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of "motor vehicle” is defined to mean a vehicle that is designed to be self propelled on land. This is the same definition as under the Motor Fuel Tax Act.

CTA - SEC. 1/Natural Gas/Int.

“Natural Gas”

Reference: Section 33

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009 amended the definition of “marketable natural gas” by removing the word “marketable” as the distinction between raw and marketable natural gas was eliminated. As a result, all natural gas is treated the same regardless of where it is used or sold, and is exempt from the security scheme.

The definition now applies to “natural gas”, and still has the meaning set out in Schedule 1 of the Act.

Effective July 1, 2008, “marketable natural gas" was defined as having the meaning set out in Schedule 1 of the Act.

Marketable natural gas was one of two fuels not subject to the security scheme. The other was propane (prior to July 1, 2010). See CTA/SEC. 33/Int.

The vast majority of natural gas was considered marketable natural gas. A natural gas mix (with or without methane) was marketable natural gas, and condensates, sold either alone or within a mix, were marketable natural gas.

CTA - SEC. 1/Person/Int.

“Person”

Reference: Motor Fuel Tax Act Section 1 “person”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of "person” includes, but is not limited to, the government of Canada.

Note: under Section 125 of the Constitution Act, 1867 (Canada), Canada and each province are not subject to tax imposed by the other level of government on its lands or property. As a result, the constitutional position is that Canada cannot tax the lands or property of a province and vice versa.

This position has been altered by agreement. Within limits, Canada has agreed to pay taxes imposed by British Columbia on taxpayers as if Canada were legally required to do so, and vice versa.

The current agreement between Canada and British Columbia is the Reciprocal Taxation Agreement (Canada – Province of British Columbia) (RTA) made under section 32 of the Federal-Provincial Fiscal Arrangements Act (FPFAA). This agreement became effective July 1, 2010 and ends, if not terminated by either party, December 31, 2015.

Under the RTA, among other things, Canada and its agents agree to pay the carbon tax. Canada agrees to pay a “provincial tax or fee” in accordance with provincial law, as if that law were applicable to it. By reference to subsection 31(1) of the FPFAA, the definition in Section 1 RTA of “provincial tax or fee” includes the carbon tax.

For more information on the RTA, see SSTA/General Ruling 32/Int.

CTA - SEC. 1/Purchaser/Int.

“Purchaser”

References: Section 1 “use”; Section 8; Motor Fuel Tax Act Section 1 “purchaser”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, for a person to be a “purchaser”, the person must have acquired fuel for “use”. The ordinary meaning of “use” is broad and includes, among other things, using a fuel as a feedstock.

The definition of “purchaser” under the Act is the same definition used in the Motor Fuel Tax Act.

A person who buys or receives delivery of fuel outside of the province is not a purchaser.

Section 8 imposes tax on a purchaser.

CTA - SEC. 1/Refiner Collector/Int.

“Refiner Collector”

Reference: Motor Fuel Tax Act Section 1 “refiner collector”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 added the definition of “refiner collector” to the Act. A refiner collector is a subcategory of collector, and is defined as a person who is appointed as a refiner collector under subsection 16(2.1).

There is a two part test to appointment. First, the director must consider the collector suitable. The director may consider a collector to be unsuitable if there is an indication the collector will not comply with the obligations of a refiner collector. Second, the collector, or an interrelated entity of the collector, must own and operate a crude oil refinery in Canada. The benefit of being a refiner collector is a limited exemption from security; a refiner collector for a specific type of fuel may sell that type of fuel exempt from security to another person who is a refiner collector for that same type of fuel.

This amendment was made to facilitate “fuel swaps” between collectors.

CTA - SEC. 1/Registered Air Service/Int.

“Registered Air Service”

References: Section 1 “registered air service certificate”; Section 21

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “registered air service” is defined as meaning a person who holds a “registered air service certificate”.

See CTA/SEC. 21/Int.

CTA - SEC. 1/Registered Air Service Certificate/Int.

“Registered Air Service Certificate”

References: Section 1 “registered air service”; Section 21

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “registered air service certificate” is defined as meaning a registered air service certificate issued under Section 21. Registered air service certificates are proof that a person is a registered air service. See CTA/SEC. 21/Int.

CTA - SEC. 1/Registered Consumer/Int.

“registered consumer”

References: Section 1 “registered consumer certificate”; Section 20; Motor Fuel Tax Act Section 1 “registered consumer”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “registered consumer” is defined as meaning a person who holds a “registered consumer certificate”.

See CTA/SEC. 20/Int.

CTA - SEC. 1/Registered Consumer Certificate/Int.

“Registered Consumer Certificate”

References: Section 1 “registered consumer service”; Section 20; Motor Fuel Tax Act Section 1 “registered consumer certificate”

Interpretation (Issued: 2011/11)

Effective January 1, 2009, Bill 37, Carbon Tax Act removed the phrase “or deemed to be issued” from the definition of “registered consumer certificate”. This phrase was enacted as a transitional provision to deem persons who held a registered consumer certificate under the Motor Fuel Tax Act were deemed to hold a registered consumer certificate under the Carbon Tax Act for six months unless their deemed certificate was suspended or cancelled for non-compliance, or if they were issued a registered consumer certificate under the Carbon Tax Act.

Effective July 1, 2008, “registered consumer certificate” was defined as meaning a registered consumer certificate issued or deemed to be issued* under Section 20. Registered consumer certificates are proof that a person is a registered consumer. See CTA/SEC. 20/Int.

*See “Effective January 1, 2009” above regarding the italicized phrase.

CTA - SEC. 1/Registered Marine Service/Int.

“Registered Marine Service”

References: Section 1 “registered marine service certificate”; Section 21

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “registered marine service” is defined as meaning a person who holds a “registered marine service certificate”.

See CTA/SEC. 21/Int.

CTA - SEC. 1/Registered Marine Service Certificate/Int.

“Registered Marine Service Certificate”

References: Section 1 “registered marine service”; Section 21

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “registered marine service certificate” is defined as meaning a registered marine service certificate issued under Section 21. Registered marine service certificates are proof that a person is a registered marine service. See CTA/SEC. 21/Int.

CTA - SEC. 1/Registration Certificate/Int.

“Registration Certificate”

References: Section 1 “retail dealer”; Section 19

Interpretation (Issued: 2011/11)

Effective January 1, 2009, Bill 37, Carbon Tax Act removed the phrase “or deemed to be issued” from the definition of “registration certificate”. This phrase was enacted as a transitional provision to deem persons who held a registration certificate under the Motor Fuel Tax Act were deemed to hold a registration certificate under the Carbon Tax Act for six months unless their deemed certificate was suspended or cancelled for non-compliance, or if they were issued a registration certificate under the Carbon Tax Act.

Effective July 1, 2008, “registration certificate” was defined as meaning a registration certificate issued or deemed to be issued* under Section 19. Registration certificates are proof that a person is a retail dealer. See CTA/SEC. 19/Int.

*See “Effective January 1, 2009” above regarding the italicized phrase.

CTA - SEC. 1/Retail Dealer/Int. – R.1

“Retail Dealer”

References: Section 1 ”collector”, “deputy collector”, “purchaser”; Section 25; Section 28; Section 33; Regulations 41.1 – 41.8; Motor Fuel Tax Act Section 1 “retail dealer”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “retail dealer” is defined as a person who, within British Columbia, sells fuel to a purchaser.

“Purchaser” is a defined term and means the end user of the fuel. A person who buys fuel for resale and not for use is not a purchaser.

The security scheme

The Act imposes requirements on different classes of persons: collectors, deputy collectors, retail dealers and purchasers.

Collectors are at the top of the distribution hierarchy and fewest in number, while purchasers are at the bottom and are greatest in number.

A typical pyramid is composed of an importer (vendor), who sells fuel (collector) to one or more distributors (deputy collectors), who in turn sell to a large number of gas stations (retail dealers), who sell to consumers (purchasers).

The scheme of the Act is to collect security from collectors, the amount of security being equivalent to the tax that would be paid by the relatively large number of purchasers. This scheme applies to all fuels except those listed in Section 33. The scheme is meant to ensure the government is paid first, to limit the government’s administrative burden (by collecting security from a limited number of collectors rather than a large number of purchasers) and to levy only a direct tax on the consumer. The Act does this by requiring the collector to remit money to the government when the collector imports into, or produces the fuel in, the province. The amount of money to be remitted must be equal to the tax that would ultimately be paid on the fuel by the end consumer. This is possible because the tax is applied to the physical quantity rather than its dollar value. The amount of money paid by persons other than purchasers is referred to as “security” to distinguish it from the “tax” paid by purchasers.

The chain of security payments is known as the “security scheme”. A collector pays security to the province and collects security from the deputy collector(s) to whom the collector sells the fuel. The collector keeps the amount of security it collected from the deputy collector to reimburse itself for the security it paid. A deputy collector, in turn, collects security from a retail dealer, and the deputy collector keeps this amount as reimbursement for security it paid. Finally, a retail dealer charges carbon tax to the purchaser (end consumer), and keeps the amount of tax as reimbursement for security it paid. In this way, the government receives an amount equivalent to the tax up front and the ultimate burden for the tax is placed on the consumer.

A person may wear more than one hat under the Act. For instance, a person may be both a collector and a retail dealer if the person both manufactures fuel in the province and sells directly to purchasers. The Act requires such a person to comply with both the requirements for collectors and retail dealers, though the Act is structure to avoid imposing redundant obligations.

In some cases, a seller of fuel knows that it sells a certain percentage of fuel to persons not required to pay tax, such as First Nations persons receiving delivery of fuel on reserve land and certain other land. The Act contains exemptions from the requirement to pay security in some cases (See, for example, Regulations 41.1 to 41.8).

In rare cases, the security scheme will break down. The Act contains provisions that protect government revenues when this occurs (see Sections 25 and 28).

R.1 Recycled Fuels (Issued: 2011/11)

Generally, when a fuel is recycled, the security scheme begins anew. For example, a person may buy low-grade or contaminated heavy fuel oil and process or refine that heavy fuel oil into higher grade heavy fuel oil. Such a person is a purchaser of the low-grade heavy fuel oil, if the person sells the higher grade heavy fuel oil, a vendor of the higher-grade heavy fuel oil. The person may apply for a refund of the carbon tax it paid on the low grade heavy fuel oil, or apply to be a registered consumer for that heavy fuel oil, and is a collector for the higher-grade heavy fuel oil. If the person sells the higher grade heavy fuel oil directly to a purchaser, then the person is also a retail dealer of heavy fuel oil.

CTA - SEC. 1/Scheduled Rate Change/Int.

“Scheduled Rate Change”

References: Section 1 “unscheduled rate change”; Schedule 1; Schedule 2

Interpretation (Issued: 2011/11)

Background

The carbon tax rate for a fuel or combustible is based on the emissions of carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) that result from burning of that fuel or combustible. A given quantity of fuel is burned and quantities of CO2, CH4 and N2O result and are measured. The quantities of CH4 and N2O are converted into quantities of CO2 with the same global warming potential (GWP) as CO2 over a given period. The result is three quantities of CO2: one for the CO2 itself; one CO2 proxy for the CH4; and, one CO2 proxy for the N2O. The three quantities of CO2 are summed and this is the “carbon dioxide equivalent” (CO2e) of emissions from burning the quantity of fuel.

In other words, the province is concerned with emissions of carbon dioxide, methane and nitrous oxide, and for ease of measurement converts measurements of methane and nitrous oxide into an amount of carbon dioxide. (The province uses standardized measurements of CO2e, taken from sources listed below.) The province then sets a price for producing a metric ton of CO2e, and sets the tax rate for burning a given quantity of a fuel or combustible based on the emissions of CO2e from burning that quantity of fuel or combustible.

On implementation of the carbon tax, July 1, 2008, the province set the price for emissions for each fuel at $15 per metric ton of CO2e. On July 1 of each year, ending July 1, 2012, the rate of carbon tax increases by $5 per ton of CO2e. For the period on and after July 1, 2013 rates are not set.

Data for CO2e emission factors comes from four sources:

For methanol, naptha and peat, the province uses the International Panel on Climate Change publication 2006 IPCC Guidelines for National Greenhouse Gas Inventories, ISBN 4-88788-032-4, http://www.ipcc-nggip.iges.or.jp
For raw and marketable natural gas, the province uses in-house data provided by the Ministry of Energy and Mines.
For tires, a study prepared for Environment Australia
For all other substances, the province uses Environment Canada Publication, National Inventory Report: 1990–2004, Greenhouse Gas Sources and Sinks in Canada (ISBN: 0-662-43576-1) (NIR). The report is updated annually.

Effective January 1, 2010, the rates of carbon tax on gasoline and light fuel oil were reduced by 5 per cent. This was done in conjunction with the implementation of the 5 per cent renewable fuel supply requirement under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act (GGRA), which also came into effect on January 1, 2010. The GGRA requires 5 per cent of the fuel supplied be “renewable fuel” (e.g. ethanol and methanol). The province’s theory is that these fuels are carbon neutral on a life-cycle basis. These fuels are primarily blended with gasoline and diesel (light fuel oil). On the theory that emissions from renewable fuels is nil, and 5 per cent of the volume of gasoline and diesel will be composed of renewable fuels, the province reduced the carbon tax rate on gasoline and light fuel oil under these fuels by 5 per cent. Note: the rate of motor fuel tax was not reduced, on the theory that the motor fuel tax is not related to government policy on emissions.

Consequential to this rate change, the definition of "scheduled rate change" was amended effective January 1, 2008 by Bill 2, Budget Measures Implementation Act (No. 2), 2009 to mean a modification in a rate of tax set out in the Table in Schedule 1 that comes into effect as of July 1 of a year.

Effective July 1, 2008, “scheduled rate change” meant a modification in a rate of tax, made in accordance with the Table in Schedule 1, as that Table read on July 1, 2008.

The rate referred to was the carbon tax rate for the Schedule 1 fuels and the Schedule 2 combustibles.

See also CTA/SEC.1/UNSCHEDULED RATE CHANGE/Int.

CTA - SEC. 1/Security/Int.

“Security”

Reference: Motor Fuel Tax Act Section 1 “security”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “security” is defined as including all penalties and interest that are or may be added to the security payable under the Act.

CTA - SEC. 1/Sell/Int.

“Sell”

References: Section 1 “sell”, “vendor”; Section 30; Motor Fuel Tax Act Section 1 “sell”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “sell” includes, but is not limited to, the transfer of ownership by barter or exchange.

This definition clarifies that selling fuel or combustibles is not limited to sales for monetary consideration but includes a transfer by barter or exchange.

As a result, “vendor” includes a person who sells property in a barter or exchange.

The original intent of this provision was to capture fuel swaps. However, fuel swaps between certain collectors (refiner collectors) are exempt from the security requirement (see CTA/SEC. 30/Int.).

See also CTA/SEC. 1/BUY/Int. regarding the related definition of “buy”.

CTA - SEC. 1/Ship/Int.

“Ship”

Reference: Motor Fuel Tax Act Section 1 “ship”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, the definition of “ship” includes, but is not limited to, any vessel that is designed to be self propelled in or on water.

CTA - SEC. 1/Tax/Int.

“Tax”

Reference: Motor Fuel Tax Act Section 1 “tax”

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaced the definition of "tax." The definition includes all penalties and interest as part of tax. The amendment adds additional amounts to the definition. Specifically, the new definition includes:

amounts owing by a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of a clearance certificate, and
amounts owing by a person who distributes the proceeds, contrary to section 65 of the Act, from the realization of property without obtaining from the director a certificate that states that the amount that constituted a lien has been paid.

The amendment allows these amounts to be administered as if they were tax.

For example, a penalty may be imposed on amounts owing by a person who purchases fuel or an interest in a business through a bulk transaction for failure to pay the amount. If the amount was not included in the definition of "tax" a penalty could not be imposed on the amount.

Effective July 1, 2008, the definition of “tax” includes, but is not limited to, penalties and interest that are or may be added to tax under the Act.

CTA - SEC. 1/Unscheduled Rate Change/Int.

“Unscheduled Rate Change”

References: Section 1 “scheduled rate change”; Schedule 1

Interpretation (Issued: 2011/11, Revised: 2014/08)

Effective May 14, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, repeals the definition of "unscheduled rate change."

Prior to May 14, 2012, “unscheduled rate change” was defined to mean a rate change other than one set out in Schedule 1 to the Act (i.e., a rate change made by regulation). Additionally, the definition included the addition of a new rate if a new type of fuel was added to Schedule 1 by regulation.

See also CTA/SEC.1/SCHEDULED RATE CHANGE/Int.

CTA - SEC. 1/Use/Int. – R.2

“Use”

References: Regulation 16; Regulation 17

Interpretation (Issued: 2011/11, Revised: 2014/10)

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act (No. 2), 2009 amended the definition of “use” by replacing “raw natural gas, marketable natural gas” with “natural gas”. This amendment was made as the distinction between raw and marketable natural gas under the Act was eliminated. Effective January 1, 2010, all natural gas is treated the same regardless of where it is used or sold, and is exempt from the security scheme.

Effective July 1, 2008, “use” was defined to include, but was not limited to, flaring and incineration of raw natural gas*, marketable natural gas*, or refinery gas, and a prescribed type of activity in prescribed circumstances.

*See amendment above, effective January 1, 2010.

Use includes both combustible and non-combustible uses. Note: if use did not include non-combustible uses, then the exemptions for specific non-combustible uses (e.g., Regulations 16 and 17) would be irrelevant.

Note: “use” is interpreted as not including the storing, keeping or retaining of property for resale, similar to the exclusion from the definition of use in the Provincial Sales Tax Act.

R.1 Use as a Feedstock or Non-Energy Use (Issued: 2011/11)

“Use” includes use as a feedstock for the purposes of Sections 16 and 25 and non-energy use for the purposes of Regulations 17 and 26.

R.2 Natural Gas (Issued: 2014/10)

"Use" is broadly defined in the Act: "use" includes flaring and incineration of natural gas or refinery gas, and a prescribed type of activity in circumstances, if any, that are prescribed. Although this definition does not preclude other activities from being considered a "use", the Ministry does not consider unplanned leaks, escapes of natural gas or planned venting of natural gas to be "use". Accordingly, these activities are not taxable under section 11 of the Act.

Venting is only non-taxable when the natural gas is not employed in some other way first. For example, "use" includes employing pressurized natural gas to operate an injection pump which is then vented into the atmosphere. In this situation, the natural gas that operates the pumps is "used" under the Act even though the natural gas is later vented during the operation. This application of "use" is consistent with the general intent of the Act which is to tax emissions from the "use" of natural gas by end consumers; other than emissions that are considered to be fugitive or process emissions under Canada's National Inventory Report.

CTA - SEC. 1/Vendor/Int. – R.1

“Vendor”

References: Section 1 “collector”; Section 15; Section 75; Motor Fuel Tax Act Section 1 “vendor”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “vendor” is defined to mean a person who:

(a) Sells fuel in British Columbia, and

(b) Does so for the first time after either manufacture of that fuel in British Columbia, or the importation of that fuel into British Columbia.

Under Section 15, a vendor is prohibited from selling fuel within British Columbia unless the vendor is appointed a collector for that type of fuel.

A vendor who sells fuel without being appointed as a collector breaches the Act (see Section 75) and is liable to a fine or imprisonment or both on conviction.

R.1 Fuel Recyclers (Issued: 2011/11)

A person that acquires used or degraded fuel and processes it into a fuel of superior quality for sale is a vendor, regardless of whether the input and the output of that person’s process is a fuel of the same Schedule 1 class. To sell the fuel, the person must be appointed as a collector.

CTA - SEC. 1/Wholesale Dealer/Int.

“Wholesale Dealer”

References: Section 1 “collector”, “deputy collector”, “purchaser”, “use”; Section 17; Section 31; Motor Fuel Tax Act Section 1 “wholesale dealer”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “wholesale dealer” is defined to mean a person who buys fuel in British Columbia for resale to a person who is not a purchaser. “Purchaser” is also a defined term; generally, it means a person who purchases the fuel for “use”.

Under Section 17, a wholesale dealer who buys fuel from a collector or deputy collector is deemed to be a deputy collector; accordingly, a wholesale dealer is brought within the security scheme for fuels and is subject to the obligations imposed on deputy collectors (see CTA/SEC. 31/Int.).

PART 2
PLANS AND REPORTS RESPECTING THE CARBON TAX

Section 1.1 - Fuel Imported By Ship

CTA - SEC.1.1/Int.

Fuel Imported By Ship

References: Section 1 "retail dealer", "vendor", "wholesale dealer"

Interpretation (Issued: 2014/08; Revised: 2016/01)

Effective March 25, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended section 1.1. Subsection (2) was amended and subsection (4) was repealed and replaced to expand section 1.1 to include sales that occur after imported fuel is released but before or at the time the fuel is removed from the ship or barge. This amended provision more accurately reflects when the first sale occurs and addressed industry concerns that the provision was inconsistent with industry practice.

Effective May 1, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, adds a new section 1.1.

Subsection 1.1(1) provides definitions for "imported fuel, "release" and "shipment."

Subsection 1.1(2) sets three rules if imported fuel is sold before it is released:

the seller is not a retail dealer even if the imported fuel is sold to a purchaser;
the seller is not a vendor;
the buyer is not a wholesale dealer, even if the buyer buys the imported fuel for resale to a person other than a purchaser.

The result of the subsection is that if a seller sells imported fuel before it is released, then the seller is generally removed from the scheme of the Act with respect to that fuel. For example, because the person will not be a "vendor," they will not be a "collector" and will not have the obligations of a collector.

Subsection 1.1(3) restricts the application of subsection 1.1(2) based on type of fuel, the subcategory of a type of fuel, class of fuel and the amount of fuel. Section 45.1 of the Carbon Tax Regulation sets these amounts.

Subsection 1.1(4) limits the application of subsection 1.1(2). If subsection 1.1(2) does not apply to a sale of imported fuel, the rule cannot subsequent apply to a sale of the imported fuel. For example, A brings into British Columbia 3 million litres of motive fuel and sells it to B prior to release. C also brings into British Columbia 3 million litres of motive fuel and sells it to B prior to release. B then sells the total 6 million litres of motive fuel to D prior to release. The rules in subsection 1.1(2) do not apply to either of the sale to B from A and C because the volume is below 5 million litres prescribed under Section 45.1 of the Carbon Tax Regulation. Subsection 1.1(4) prevents the rules in subsection 1.1(2) from applying to the sale from B to D.

Subsection 1.1(5), provides that a person who, within British Columbia, sells imported fuel for the first time in a sale to which subsection 1.1(2)(a)-(c) do not apply is the vendor of that fuel. For example, A sells 10 million litres of gasoline to B prior to release. The gasoline is then released and B sells the fuel to C. Under subsection 1.1(5), B is the vendor, notwithstanding they have not sold the fuel for the first time since its importation into British Columbia.

Section 1.2 - Liability Of Other Persons

CTA - SEC. 1.2/Int.

Interpretation (Issued: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 adds section 1.2. The amendment ensures that the government can collect taxes owing from any persons who collectively purchase or use fuel and can collect security payable by more than one person in respect of fuel.

CTA - SEC. 2-7/Int.

History Of The Part

References: Section 2-8

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Part 2 of the Act (Sections 2 through 7) imposes obligations on the Minister of Finance regarding plans, reports, and enactment of legislation regarding the Act, in particular regarding the revenue neutrality of the carbon tax.

Subsection 2(1) provides definitions for the purposes of Part 2.

Under subsection 2(2), the carbon tax is revenue neutral if “the dollar amount of the carbon tax collected in a fiscal year is less than or equal to the estimated dollar amount of the reduction in Provincial revenues in the same fiscal year as a result of revenue measures”.

Carbon Tax Report and Carbon Tax Plan

Paragraph 3(1)(a) requires the Minister of Finance to annually prepare both a carbon tax report and a carbon tax plan.

Paragraph 3(2)(b) details the requirements for the carbon tax plan, which is a prospective document that must cover a three year fiscal period beginning with the first day of the next fiscal year to start after introduction of the plan. The carbon tax plan must include a forecast of carbon tax revenues, a forecast of the reduction in other provincial taxes or fees that will be made to keep the carbon tax revenue neutral during that period, and a list of revenue measures the Minister of Finance proposes to implement to keep the carbon tax revenue neutral.

Paragraph 3(2)(c) details the requirements for the carbon tax report, which is a retrospective document that presents whether the planned revenue neutrality in fact occurred. The carbon tax report documents carbon tax revenue (or an estimate of it) for the previous two fiscal years, the estimated reduction in other provincial taxes or fees that occurred in the previous two fiscal years and whether the reductions completely offset carbon tax revenue.

Adjustment Amount Plan

An excess of estimated or actual carbon tax revenue over the reductions in other taxes or fees is defined as an adjustment amount. The adjustment amount is recorded in the report separately for the first and second fiscal year covered by the report.

To ensure the carbon tax does not result in an increase in tax revenue, if the carbon tax report includes an adjustment amount in the first year covered by the report, the Minister must prepare an “adjustment amount plan” to address the adjustment amount. Additionally, the Minister may prepare an adjustment amount plan if the carbon tax report includes an adjustment amount for the second year covered by the report.

An adjustment amount plan must include adjustment measures to offset the adjustment amount. Adjustment measures may include exemptions from tax other than the carbon tax, reduction or elimination of a provincial tax or fee other than the carbon tax, the grant or increase of a tax credit other than a carbon tax credit or the continuation of these measures.

Presentation of the Report and Plan(s)

Section 4 requires the Minister of Finance to present the carbon tax report and carbon tax plan to the Legislative Assembly at the same time as the main estimates for the next fiscal year. In a non-election year, this occurs on the third Tuesday in February (i.e., Budget Day). Note: the provincial fiscal year runs from April 1 to March 31.

If an adjustment amount plan is required, the Minister of Finance must also present this plan to the Legislative Assembly at the same time.

In addition, the Minister of Finance must present:

a statement disclosing all material assumptions and policy decisions underlying the preparation of the report and plan(s), and
a statement (signed by the secretary to Treasury Board, who has historically been the Deputy Minister of Finance) as to whether these reporting and disclosure requirements have been met.

Please note: historically, the carbon tax report, carbon tax plan and the statement disclosing all material assumptions and policy decisions have been included as part of the “Tax Measures” within the annual Budget and Fiscal Plan, which is the main Provincial budget document. The signed statement from the secretary to Treasury Board (i.e., the Deputy Minister of Finance) has been included as part of a signed letter from the Deputy Minister of Finance which has been attached as a forward to the Budget and Fiscal Plan.

Failure to introduce legislation

Under Section 5 of the Act, the Minister of Finance will have his or her salary reduced by 15% if the Minister fails to introduce legislation that is “reasonably necessary” for implementing the proposed revenue measure(s) and/or adjustment measure(s) into the Legislative Assembly within 120 days of the date of presentation of the plan and report.

If the minister who presented the plan and report to the Legislative Assembly is the Minister of Finance for only part of that fiscal year, the salary reduction is applied proportionally by the formula in paragraph 5(3)(b).

Section 6 provides that no action or other proceeding, except an action brought by the government to have the Minister repay the deemed salary reduction, if any, may be brought regarding obligations established under Part 2 of the Act.

Section 7 of the Act contains a scheduling provision to deal with the first carbon tax report. This provision was necessary because while the Act requires the carbon tax report to cover two fiscal years, the first report only covered one year because it was only applicable to the first year that the carbon tax was in effect.

Section 8 – Imposition Of Tax On Purchase Of Fuel

CTA - SEC. 8/Int.-R.1

References: Section 1 “purchaser”,” registered consumer”,” registered air service”, “registered marine service”; Section 20; Section 21; Schedule 1; Regulation 4; Regulation 5; Regulation 6; Regulation 11; Regulation 12

Interpretation (Issued: 2011/11, Revised: 2014/08)

Effective May 1, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, adds a new subsection (6). The new subsection was added for the purposes of the new rules regarding imported fuel under section 1.1.

Effective May 14, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, repealed subsection 8(3).

Effective July 1, 2008, Section 8 of the Act imposes carbon tax on a purchaser of fuel. (Purchaser is defined under Section 1 and is generally the ultimate purchaser or “end user” of the fuel in the province.). Use includes both combustive (e.g. as fuel to burn) and non-combustive (e.g. solvents) uses; however, there are exemptions from carbon tax for a limited number of non-combustive uses.

Subsection 8(1) requires a purchaser of fuel to pay carbon tax on the fuel at the time of purchase. “Purchaser” is defined under Section 1 of the Act to mean a person who purchases fuel within the province for use.

The rate of carbon tax for each fuel is set out in Schedule 1 of the Act. Carbon tax is levied on the volume of fuel and not its price.

Tax charged under Section 8 does not apply to a “combustible” (i.e. peat, shredded tires, whole tires). Rather, Section 12 of the Act imposes tax on combustibles at the rates set out in Schedule 2 of the Act.

Subsection 8(2) addresses the case of a scheduled tax rate change between the time of purchase and the time of delivery. In such a case, the subsection requires the purchaser to pay the rate in effect at the time the purchaser receives delivery.

Subsection 8(4) provides that a purchaser who is a “registered consumer” is not required to pay carbon tax at the time of purchase. Generally, the Act allows a registered consumer to not pay the tax at the time of purchase but instead to periodically assess its taxable use; (see Section 1 “ registered consumer”, Section 20; and Regulations 4 and 11). Subsection 8(5) provides for similar treatment for a “registered air service” and “registered marine service” (see Section 1 “registered air service”, “registered marine service”; Section 21; Regulations 5, 6 and 12).

R.1 Fuel Surcharges (Issued: 2012/02)

Carbon tax applies only to fuel and combustibles. A fuel surcharge is a fee added to the base price of a service as reimbursement to the service provider for increased fuel costs. It is not, however, the purchase of fuel itself. For example, a company may hire a rail carrier to provide a service (e.g. transport goods). The rail carrier may charge a "fuel surcharge" to cover their fuel costs. However, if the company is not purchasing fuel from the rail carrier, the rail carrier must not charge the carbon tax on the purchase price of the service.

Section 8.1 – Imposition Of Tax On Fuel Used For A New Purpose

CTA - SEC. 8.1/Int

References: Section 14, Regulation 20.1

Interpretation (Issued: 2014/08)

Effective January 1, 2014, Bill 2 - Budget Measures Implementation Act, 2013 added a new section 8.1.

The new section creates a change of use provision for the carbon tax. If a purchaser purchased fuel exempt because the fuel was to be used for a particular purpose and then uses the fuel for a taxable purpose, the purchaser must pay tax on that fuel.

The new section was necessary with the addition of the exemption for farmers which is based, in part, on a use test. Therefore, the section prevents the avoidance of tax through the change in use.

Section 9 – Imposition Of Tax On Transfer Of Fuel

CTA - SEC. 9/Int.

References: Regulation 11; Regulation 12; Regulation 13

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 9 of the Act imposes tax on volumes of fuel transferred into the supply tanks of engines that power a ship, rolling stock, vehicles run on rails and aircraft on transfer, provided the user of the fuel has not already been taxed as a purchaser. The section is an anti-avoidance provision.

Subsection 9(1) provides that a person who transfers fuel in British Columbia into a receptacle that supplies the engine of a ship, train or other vehicle run on rails, or an aircraft must pay tax on the transfer of that fuel at the time set out in the regulations (see Regulation 13).

Subsection 9(2) limits the application of subsection 9(1) to a person who transfers the fuel for the person’s own use, the use of another at the person’s expense, or for a principal.

Subsection 9(3) and 9(4) further limit the application of subsection 9(1) by providing the tax on transfer does not apply to a registered consumer (who remits tax per Regulation 11), a registered air service or a registered marine service (who remit tax per Regulation 12).

Section 10 – Imposition Of Tax On Fuel Brought Into British Columbia

CTA - SEC. 10/Int.

CTA: Section 14

CTR: Section 11; Section 12; Section 39

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaced subsection 10(3). The amendment clarifies the meaning of carrying on business in British Columbia to include other persons who are considered to be carrying on business in the province. The additional persons are consistent with the section 5 of the PSTA.

Effective July 1, 2008, section 10 of the Act provides that if a person resides or carries on business in British Columbia the person must pay tax on fuel brought into British Columbia in the supply tank of a motor vehicle, aircraft or ship. The section is an anti-avoidance provision. There are exemptions from this tax under Section 14 of the Act for, among other things, fuel brought into the province in the supply tank of supplemental supply tank of a non-commercial aircraft or ship, provided that fuel is to be used in the operation of that aircraft or ship.

Subsection 10(1) imposes the carbon tax on the importation of fuel.

Subsection 10(2) limits the application of subsection 10(1) to a person who transfers the fuel for the person’s own use, the use of another at the first person’s expense, or for a principal.

Subsection 10(3) is a deeming provision in support of subsection 10(1). Subsection 10(1) imposes tax on, among other persons, a person who carries on business in the province. Subsection 10(3) deems certain persons to be carrying on business in the province. A person is deemed to be carrying on business in the province if either: (a) an employee or representative of that person carries on activities in the province on that person’s behalf for the purpose of promoting of facilitating the carrying on of that person’s business; or (b) the person routinely loads or unloads passengers, cargo or both in the province.

Subsections 10(4) and 10(6) further limit the application of subsection 10(1) by providing the tax on import does not apply to a registered consumer, a registered air service or a registered marine service (who remit tax per CTR section 11 and CTR section 12).

Subsection 10(5) further limits the application of 10(1). For an IFTA commercial vehicle to which the Act applies, the carbon tax on importation does not apply if a deposit has been paid in accordance with the regulations (see CTR section 39). IFTA commercial vehicles are excluded to avoid double taxation as they are already subject to a bringing in tax under the Motor Fuel Tax Act which is mirrored in this Act.

Section 11 – Imposition Of Tax On Use Of Fuel

CTA - SEC. 11/Int.

References: Section 8; Section 9; Section 10

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 11 of the Act imposes tax on fuel used in the province, provided the fuel has not already been taxed under sections 8 (purchase), 9 (specified transfers) or 10 (importation in the supply tank or supplemental supply tank of certain vehicles) of the Act. This includes fuel used by registered consumers, registered air services and registered marine services.

Section 11 tax applies to both fuel acquired by one person from another and fuel the person produces itself. For example, if a person produces heavy fuel oil and uses that heavy fuel oil in British Columbia, then the person must pay tax on that fuel under section 11 of the Act.

Section 12 – Imposition Of Tax On Combustible

CTA - SEC. 12/Int.

References: Section 1 “combustible”, “fuel”; Schedule 2; Regulation 13(3)

Interpretation (Issued: 2011/11)

In addition to the tax on a “fuel” there is a tax on a “combustible”, both of which are defined terms under Section 1 of the Act. The three taxable combustibles are peat, shredded tires and whole tires; the rates of tax for combustibles are set out in Schedule 2 to the Act.

Effective July 1, 2008, Section 12 of the Act imposes carbon tax on combustibles and requires a person who burns in British Columbia a combustible to produce energy, including heat, to pay carbon tax on the quantity of combustible burned. This includes registered consumers, registered air services or registered marine services.

When tax on combustibles is to be remitted is set out in Regulation 13(3).

Combustibles are not subject to the security scheme.

Section 13 – Calculation Of Tax For Blends Or Mixtures

CTA - SEC. 13/Int.

References: Regulation 44; Schedule 1

Interpretation (Issued: 2011/11)

Effective July 1, 2008, subsection 13(1) provides that when there is a mixture or blend of fuels or combustibles with or without non-taxable substances or items, the mixture or blend is taxable based on the blends rule.

The blends rule is that tax is calculated only based on the amount of the taxable fuel or combustible within the mixture or blend.

However, this does not mean that fuels which are ordinarily made with a blend of fuel (e.g. jet fuel) are taxed based on their components. Such fuels are taxed at the rate set out in Schedule 1. If jet fuel were mixed with another fuel, it would taxable based on the amounts of jet fuel and the other fuel. Regulation 44 provides a list of prescribed fuels in which subsection 13(1) does not apply.

Subsections 13(2) to 13(4) allow the application of subsection 13(1) to be limited by regulations.

Subsection 13(2) provides there can be exceptions to the blends rules set out in the regulations (see Regulation 44).

Subsection 13(3) provides that where there is an exemption to the blends rule in the regulations, the regulations will set out how the tax is to be calculated on the blend or mixture.

Subsection13(4) allows an entire mixture or blend to be taxable if the non-taxable proportion of the mixture or blend is less than an amount set out in the regulations.

Section 13.1 - Calculation Of Tax For Certain Biomethane Blends Or Mixtures Calculation Of Tax

CTA - SEC.13.1/Int.

Reference: Section 1 "biomethane credit," Section 1 "biomethane," Section 13.1, Section 14.1, Section 14.2, Section 14.3, Regulation 22.1, Regulation 22.2, Regulation 22.3, Regulation 22.4, Regulation 22.5, Regulation 22.6, Regulation 22.7

Interpretation (Issued: 2012/03)

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 adds Section 13.1.

Biomethane is a renewable fuel produced from biomass (e.g. agricultural and other organic wastes). Purchases of 100 percent biomethane are not subject to carbon tax because biomethane is not "fuel." The biomethane portion of a blend is not subject to carbon tax where the actual amount of biomethane in the blend is known (for example in a closed container system).

However, because biomethane is interchangeable with natural gas (they are both methane), blending the two created an administrative issue in certain scenarios. Natural gas retail dealers may blend biomethane with their natural gas inventory in a pipeline upstream from the point of sale. Once blended, the biomethane is indistinguishable from the natural gas and, as a result, the retail dealer could not determine the amount of biomethane they sold to the final consumer. Because the retail dealer could not determine the amount of biomethane they sold, they could not correctly apply the carbon tax to the natural gas component of the blend.

Several sections were added to the act (including Section 13.1) to address cases where the proportions of a biomethane blend could not be determined. The biomethane provisions first tax blends of unknown biomethane proportions and then provide a credit for blends of biomethane and natural gas sold under qualifying contracts by registered retail dealers of natural gas. What constitutes a qualifying contract is set out in Regulation 22.1. Amongst other requirements, qualifying contracts must clearly stipulate the amount that purchasers are paying for a specified volume or percentage of biomethane. The credit is equal to the carbon tax payable on the specified volume or percentage of biomethane (regardless of whether any actual biomethane is delivered to the purchaser).

The new Section 13.1(1) provides a special blend rule for a blend of fuel and biomethane when the combined amount cannot be determined. In such cases, the biomethane is deemed to be fuel of the same type or subcategory of a type of fuel in the blend and tax payable is determined by multiplying the rate of tax for the fuel by the combined amount of the fuel and the biomethane. In other words, the entire blend is taxed as the fuel.

For example, if a person purchases 1,000 cubic meters of natural gas and biomethane, but the individual volumes of biomethane and natural gas cannot be determined, then the tax payable is 1,000 cubic meters multiplied by the natural gas rate.

Subsection (2) mirrors subsection (1) except it provides a special blend rule when biomethane, natural gas and another fuel are blended together and the proportions in the combined amount cannot be determined. In these cases, the other fuel and the biomethane are deemed natural gas and the tax payable is determined by multiplying the rate of tax for the natural gas by the combined amount of the natural gas, biomethane and other fuel.

Section 14 – Exemptions From Tax

CTA - SEC. 14/Int. – R.3

References: Section 18; Section 18.1, Section 20.1, Section 20.2

Interpretation (Issued: 2011/11, Revised: 2017/05)

Effective March 1, 2016, Bill 10, Budget Measures Implementation Act, 2016 amended subsection 14(1) to repeal the definition of "common carrier" consequential to the addition by this Bill of the definition of "common carrier" to section 1 of the Act.

Subparagraphs 14(2)(c)(i)(A) and (B) are amended by striking out "the collector, deputy collector or retail dealer" and substituting "the retail dealer" to remove unnecessary references.

Effective January 1, 2014, section 14(2) was amended by Bill 2 - Budget Measures Implementation Act, 2013. A new paragraph (g) was added. Paragraph (g) exempts fuel that is purchased by a farmer for a prescribed purpose and that is:

a prescribed type of fuel,
a prescribed subcategory of a type of fuel, or
in a prescribed class of a type of fuel or of a subcategory of a type of fuel.

The prescribed purpose and fuel types are set out under MFTR Section 20.1. Although there are some differences, section 14(2)(g) is generally intended to mirror the motor fuel tax exemption for farmers.

Effective May 1, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, repealed and replaced section 14(2)(c) for the purposes of the new section 1.1.

Effective September 2, 2009, Budget Measures Implementation Act (No. 2), 2009, amended the definition of “non-commercial aircraft or ship.” The previous definition of "non-commercial aircraft or ship":

“non-commercial aircraft or ship" means an aircraft or ship that is not used to

(a) transport goods for members of the public,

(b) transport members of the public, or

for a fee.

was repealed, and replaced by:

"non-commercial aircraft or ship" means an aircraft or ship used solely for personal use.

Prior to this amendment, fuel in ships or aircraft used for certain commercial purposes were eligible for the exemption (e.g. commercial fishing boats).

Effective July 1, 2008, this section sets out some of the exemptions to carbon tax.

R.1 Charters as Common Carriers (Issued: 2011/11)

“Common carrier” is defined under section 14(1) of the Act as a person who is in the business of transporting goods for members of the public. There may be situations where a purchaser is chartering a vessel to transport fuel. Whether a person who offers their cargo vessel as a charter is a “common carrier” depends on the type of charter.

A person who offers their cargo vessel under a bare boat charter (i.e., a charter where the vessel owner does not provide any crew or provisions) is not considered a “common carrier” because the nature of a bare boat charter is akin to a lease rather than a contract for transporting goods. A vessel owner who offers their cargo vessel under a voyage charter or a time charter is considered a “common carrier” because the vessel owner retains enough control over the vessel such that they are in the business of transporting goods rather than in the business of leasing or renting vessels.

R.2 Alternatives to a Common Carrier Contract (Issued: 2014/10; Revised: 2021/05)

Subparagraph 14(2)(c)(iii) of the Act allows fuel sellers to sell fuel exempt to end purchasers if a contract is in place at the time of the sale for the fuel to be removed from the province by a common carrier working for the purchaser.

In some situations, the purchaser and/or common carrier are reluctant to provide a copy of the contract to the fuel seller for reasons of business confidentiality, etc. If this occurs, the fuel seller has three options:

The fuel seller charges tax and the purchaser applies for a refund;
The fuel seller may request a copy of the contract with the contracted rates and total value deleted; or
The fuel seller considers accepting as an alternative to a copy of the contract, a letter signed by both the purchaser and the common carrier providing specific information regarding the contract. If the fuel seller elects to follow this process, it should ensure the letter contains the following information:

a) A statement regarding the existence of a contract between the end purchaser and the common carrier who is working for the purchaser

b) A statement listing the types of fuel purchased that will be exported from B.C.

c) A statement regarding the term (including both the start and end date) of the contract. (If the contract term is longer than 24 months, an updated letter must be provided to the fuel seller prior to the end of the 24 month period).

d) A statement that both the purchaser and common carrier recognize that any statements/representations in the letter are subject to further verification by the Ministry of Finance, and if the purchaser is found to be not eligible to purchase the fuel exempt from tax, the purchaser will be assessed the taxes that should have been paid and may also be subject to penalties and/or interest changes.

e) A statement from the purchaser that the purchaser:

I. Is purchasing, using this letter, fuel for its own use or resale in another jurisdiction

II. Will, for audit purposes, retain sufficient records to show that the fuel was exported from BC and was received in another jurisdiction. (The types of acceptable records include, but are not limited to, the following: a copy of the fuel supply contract(s) with common carrier(s) who exported the fuel from British Columbia, copies of the related bills of lading and freight invoices for the fuel sales showing the location of pickup and location of delivery in the receiving jurisdiction and the signature of the individual accepting delivery of the fuel, copies of information reporting the import of the fuel into the receiving jurisdiction).

III. Will notify the seller immediately if the contracted delivery locations change (i.e., deliveries made under this letter are being made to other locations outside the province or to locations in BC) or if the contract is amended or cancelled.

Below, is a draft letter with the above information which can be used as a template:

Common Carrier Letter for [SELLER] (“Seller”)

This letter certifies that a contract exists between BUYER LEGAL NAME (“Buyer”) and COMMON CARRIER LEGAL NAME (“Common Carrier”) for the carriage and removal of [enter fuel product type] (i.e. export) from BC (the Contract).

Buyer confirms that it will notify both Seller and Common Carrier immediately if the delivery locations made under the Contract are requested to be changed to locations in BC. Buyer confirms it will notify Seller if the Contract is amended or cancelled.

Common Carrier and Buyer recognize that any statements or representations contained in this letter are subject to further verification by the Ministry of Finance. If Buyer is found not eligible to purchase fuel exempt from carbon tax, Buyer will be assessed the tax that should have been paid and may also be subject to penalties, interest, or both.

The Contract was entered into with an effective date of Month/Day/Year and is renewed on an [enter renewal term here (for example, annual)] basis through purchase orders and requisitions for services.

Carrier Legal Name

Buyer Legal Name

_____________________________

Authorized Rep Name
Date:

Addendum to Common Carrier Contract Letter

Buyer further certifies:

Purchased fuel is for its own use or resale in another jurisdiction, or both.
Fuel purchased in BC for own use in another jurisdiction is subject to motor fuel tax.
100% of the volumes purchased using this common carrier letter will be exported from BC.
It will, for audit purposes, retain sufficient records to show that the fuel was exported from BC and was received in another jurisdiction. The types of acceptable records include, but are not limited to, the following:
- a copy of the fuel supply contract(s) with common carrier(s) who exported the fuel from BC;
- copies of the related bills of lading and freight invoices for the fuel sales showing the location of pickup and location of delivery in the receiving jurisdiction and the signature of the individual accepting delivery of the fuel; and
- copies of information reporting the import of the fuel into the receiving jurisdiction.
If the term of the contract exceeds 24 months, Buyer agrees to provide an updated letter to Seller within one month prior to the expiry of the 24 month period.

Legal Name of Buyer

_____________________________

Authorized Rep Name

Date:

Additional Notes for the “Seller”

If the fuel seller has been appointed a collector, the seller should report this exempt sale on their Carbon Tax Return - Collectors (FIN 175), using:
- Line 1 - Total Volume of Fuel sold in BC; and
- Line 3d - Fuel Sold Within BC and Exported.
If the fuel seller is not a collector, they can apply for a refund using Application for Refund of Carbon Tax Deputy Collector or Retail Dealer (FIN 143).
If a person seeks to purchase fuel from a fuel seller exempt from tax and the circumstances are such that a reasonable person would believe that the person is not entitled to purchase the fuel exempt from tax, the fuel seller should charge tax and promptly advise the director of the Carbon Tax Act and provide such details as the director requires.

R.3 Pipeline Operators as Common Carriers (Issued: 2016/01)

Subparagraph 14(2)(c)(iii) of the Act provides an exemption from carbon tax for fuel that is purchased in BC for use outside of BC and which is to be removed from BC by the purchaser, or the person acting on behalf of the purchaser, if that person has, at the time of the purchase, entered into a contract with a common carrier for the removal of the fuel from BC.

A "common carrier" is defined in section 1 of the Act as a person who is in the business of transporting goods for members of the public. Pipeline operators can be common carriers for the purposes of the Act provided they meet the definition.

Section 14.1 - Biomethane Credit

CTA - SEC.14.1/Int.

Credit

Reference: Section 1 "biomethane credit," Section 1 "biomethane," Section 13.1, Section 14.2, Section 14.3, Regulation 22.1, Regulation 22.2, Regulation 22.3, Regulation 22.4, Regulation 22.5, Regulation 22.6, Regulation 22.7

Interpretation (Issued: 2011/03)

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 adds Section 14.1.

Section 14.1 requires a retail dealer of natural gas to provide a credit to a purchaser in circumstances and at the time set out in the regulations.

The circumstances are set out in Regulation 22.2.

Section 14.2 - Refund To Retail Dealer Of Natural Gas

CTA - SEC.14.2/Int.

Refund

References:

Act: Section 1 "biomethane ", "biomethane credit," Section 13.1, Section 14.1, Section 14.3

MFTR: Section 22.1, Section 22.2, Section 22.3, Section 22.4, Section 22.5, Section 22.6, Section 22.7

Interpretation (Issued: 2012/03; Revised: 2017/05)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended paragraph 14.2(b) of the Act to correct a reference and ensure consistency with subsection 28(1) of the Act by providing that one of the conditions for a refund to a retail dealer is that the retail dealer has remitted the amount of tax payable to the government and not to the director.

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 adds Section 14.2.

Section 14.2 allows for a refund for natural gas retail dealers who have provided biomethane credits.

Section 14.2 requires the government pay a refund of a portion of the tax remitted by a natural gas retail dealer if:

the retail dealer provided a biomethane credit to a purchaser,
the retail dealer has remitted the amount of tax payable in respect of the sale without deduction for the biomethane credit; and
the purchaser was entitled to receive the biomethane credit.

The amount of the refund is determined under Section 22.4.

Section 14.3 - Recovery Of Amount By Retail Dealer Of Natural Gas

CTA - SEC.14.3/Int.

Recovery Of Amount

Reference: Section 1 "biomethane credit," Section 1 "biomethane," Section 13.1, Section 14.1, Section 14.2, Regulation 22.1, Regulation 22.2, Regulation 22.3, Regulation 22.4, Regulation 22.5, Regulation 22.6, Regulation 22.7

Interpretation (Issued: 2012/03)

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 adds Section 14.3.

Section 14.3 provides a mechanism for a retail dealer to recover an amount they credited to a purchaser who did not qualify for a biomethane credit. The retail dealer may by action in a court, recover the amount of the credit from the person who did not qualify for the credit.

Section 15 – Vendor Selling Fuel

CTA - SEC. 15/Int.

References: Section 1 “vendor”; Section 16

Interpretation (Issued: 2011/11)

Effective July 1, 2010, Budget Measures Implementation Act, 2010 amended subsection 15(2) to remove the reference to propane as propane is now subject to the payment of security under the Act.

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009 amended this section to remove the word “marketable” in the one instance that it occurred, before the phrase “natural gas” in subsection 15(2).

Effective July 1, 2008, Section 15 prohibits a vendor from selling fuel in the province unless the vendor has been appointed by the director as a collector for that type of fuel. This prohibition applies to all fuels except natural gas.

The effect of this section is to implement the security scheme for all fuels except natural gas. Natural gas is not subject to the security scheme under the Act and the carbon tax is only collected at the retail level. Prior to July 1, 2010, the security scheme did not apply to propane.

Under Section 1, a “vendor” means a person who, within British Columbia, sells fuel for the first time after its manufacture in British Columbia or its importation into British Columbia. If the vendor plans to sell this fuel, to a purchaser or otherwise, in the province, the vendor must first be appointed as a collector.

On application, a vendor may be appointed by the director as a collector under Section 16 of the Act.

Section 16 – Appointment Of Vendor As Collector

CTA - SEC. 16/Int.

CTA: Section 1 “collector”, “vendor”, “refiner collector”; Section 22; Section 24; Subsection 30(3); Section 56

CTR: Section 7

Motor Fuel Tax Act Section 28

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 16 by adding two new subsections. The new subsection (2.11) allows the director to require the applicant to provide a bond at the time of application. The new subsection (2.12) provides the director with authority to refuse to make the appointment if the bond is not provided by a date specified by the director.

The ability to require a bond provides the director with a greater ability to account for the risk of non-payment before appointing a collector.

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014, added subsection (2.3) and subsection (2.4).

Subsection (2.3) provides that the director may make a collector appointment or refiner collector appointment retroactive to a date that is on or after the first day of the month in which the vendor first sells a type or subcategory of a type of fuel after its manufacture or importation. If an appointment is made retroactive, then the vendor is deemed to have been appointed a collector or refiner collector on the specified date.

Subsection (2.4) provides that an appointment may not be made on a date that is earlier than 4 years before the director makes the appointment under subsection (1) or (2.1).

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009 added subsections 16(2.1) and 16(2.2) to provide an exemption from security for certain collectors who own and operate a refinery or are interrelated with an entity or entities that own and operate a crude oil refinery.

A similar amendment was made to the Motor Fuel Tax Act (MFTA) through the additions of subsections 28(2.1) – (2.2). When the Act was enacted it was modeled on the MFTA.

Effective January 1, 2009, Bill 37, Carbon Tax Act amended this section by repealing subsections (3) through (6). These four subsections contained transitional provisions by which a person who was appointed a collector under the MFTA, as it read on June 30, 2008, was appointed a collector under the Act. Under subsection (6), these appointments ended no later than December 31, 2008.

Effective June 1, 2008, section 16 provides for the appointment of vendors as collectors.

Subsection 16(1) gives the director the discretionary power to appoint a vendor who has applied as a collector subject to conditions specified by the director. The director may consider an applicant to be unsuitable if there is an indication the applicant is not financially viable or will not comply with the obligations of a collector.

Subsection 16(2) requires a successful applicant, before its appointment, to enter into an agreement with the province setting out the duties to be performed by the collector and other duties the director considers appropriate.

Subsections 16(2.1) and 16(2.2) allow the director to appoint a collector, in addition to being a collector, as subcategory of collector, the refiner collector. A refiner collector for a specific fuel may sell that fuel to another refiner collector for that fuel exempt from security (see section 30).

“Vendor” is defined under section 1 of the Act to be the first person to import fuel into, or manufacture fuel in, the province.

A collector appointment may be limited to a “type or subcategory of a type of fuel” (paragraph 16(1)(a) of the Act), and is only valid for the fuel(s) listed on the collector’s appointment certificate. The director is empowered to limit the appointment to a “subcategory of a type of fuel” that is prescribed (section 22). Prescribed subcategories are set out only in CTR section 7; they are diesel fuel, heating oil, locomotive diesel fuel and industrial oil.

Suspension or cancellation of a collector appointment under the MFTA results in same action occurring under the Act (section 24).

If a person applies to the director to be appointed as a collector and the person’s application is denied, the person may appeal to the minister (section 56).

Section 17 – Appointment Of Deputy Collector

CTA - SEC. 17/Int.

References: Section 16, Section 26; Subsection 30(3); Section 31; Section 32; Section 37; Section 56; Regulation 22; Regulation 24; Regulation 41.4

Interpretation (Issued: 2011/11, Revised 2014/08)

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014, added subsection (4) and (5).

Subsection (4) provides for the retroactive appointment of a deputy collector if they buy fuel from a vendor whose collector appointment is retroactive under Subsection 16(2.3).

Subsection (5) provides that the deputy collector appointment is deemed to have been made at the time the wholesale dealer bought the fuel.

Effective July 1, 2008, Section 17 automatically appoints a wholesale dealer who has purchased fuel from a collector as a deputy collector. It also automatically appoints a wholesale dealer who has bought fuel from a deputy collector as a deputy collector. There can be any number of deputy collectors between the collector and the retail dealer. This section preserves the security scheme through the chain of distribution.

Subsection 17(2) exempts collectors from this automatic appointment for exempt sales from one refiner collector to another refiner collector (see subsection 30(3)).

Subsection 17(3) requires a deputy collector to comply with the Act even if that deputy collector is also a collector or a registered consumer with respect to another fuel.

A deputy collector is required to remit security up the security chain and collect security or tax from the person who buys fuel from that deputy collector (Sections 26 and 31). The deputy collector keeps the security it has collected to reimburse itself for the security it has paid (Section 31).

A deputy collector may apply to the director for an exemption from the security requirement regarding fuel sold to a person who is: not a purchaser; not liable to pay tax; or, a registered marine service or registered air service, for the type of fuel sold (Section 31). A deputy collector may obtain a refund of security paid regarding sales of fuel to these purchasers (Section 37).

If an application for exemption from the requirement to pay security is refused, the deputy collector may appeal to the minister (Section 56).

A deputy collector does not have to pay security on fuel purchased in a sealed, pre-packaged container that holds no more than four litres (Regulation 22).

A deputy collector who is not paid by its customer may apply for a refund of tax or security paid (Section 38; Regulation 24).

A deputy collector must not collect security on the sale of specified fuel to an exempt fuel retailer (Section 32 and Regulation 41.4).

Section 18 – Sale Of Natural Gas And Propane

CTA - SEC. 18/Int.

References: Section 1 “natural gas”, “purchaser”; Section 15

Interpretation (Issued: 2011/11)

Effective July 1, 2010, Budget Measures Implementation Act, 2010 amended Section 18 to remove the reference to propane as propane is now subject to the payment of security under the Act.

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009, amended Section 18 to remove the word “marketable” from “marketable natural gas” as the distinction between raw and marketable natural gas was eliminated. This amendment was consequential to other amendments that resulted in all natural gas being treated the same regardless of where it is used or sold, and being exempt from the security scheme

Effective July 1, 2008, Section 18 requires a person who sells natural gas in the province to a purchaser to first obtain a retail dealer registration certificate. Prior to July 1, 2010, in addition to natural gas, persons who sold propane in the province needed to obtain a retail dealer registration certificate. Propane is now subject to the security scheme.

A “purchaser” is defined under Section 1 to mean, among other things, a person who buys fuel in the province for the person’s own consumption or use.

Section 19 – Issue Of Registration Certificate To Retail Dealer

CTA - SEC. 19/Int.

References:

CTA: Section 1 “natural gas”, “registration certificate”, “retail dealer”

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 added two new subsections to section 19.

The new subsection 19(7) allows the director to require an applicant for a registration certificate to provide a bond at the time of application. Under the new subsection 19(8), the director may refuse to issue the certificate if the bond is not provided by a date specified by the director.

The ability to require a bond allows the director to better account for the risk of non-payment before issuing a certificate for a retail dealer.

Effective July 1, 2010, Bill 2 – Budget Measures Implementation Act, 2010 amended Section 19 to remove the reference to propane as propane is now subject to the payment of security under the Act. See Notice 2010-004 – Notice to Propane Sellers – Carbon Tax for more information.

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009 amended section 19 by removing the word “marketable” from “marketable natural gas” as the distinction between raw and marketable natural gas was eliminated. This amendment was consequential to other amendments that resulted in all natural gas being treated the same regardless of where it is used or sold, and being exempt from the security scheme.

Effective January 1, 2009, Bill 37 – Carbon Tax Act repealed subsections 19(3) – 19(6), which were transitional provisions that deemed persons who were retail dealers of marketable natural gas and propane, and held registration certificates under the Social Service Tax Act as being issued a temporary registration certificate effective July 1, 2008. Any registration certificates made under these provisions expired by December 31, 2008; therefore affected persons still had to apply to the director for a regular registration certificate.

Effective July 1, 2008, section 19 authorizes the director to issue a registration certificate to an applicant, authorizing a retail dealer to sell marketable* natural gas or propane*.

*See amendments effective January 1, 2010 and July 1, 2010 above.

Under subsection 19(2), the director may require an applicant to enter into an agreement with the director, on behalf of the government, setting out the duties of the successful applicant.

Section 20 – Issue Of Registered Consumer Certificate

CTA - SEC. 20/Int. – R.1

References:

CTA: Section 1 “ registered consumer”, “registered consumer certificate”; Section 8; Section 9; Section 10; Section 56; Regulation 1 “flight”, “interjurisdictional air service”

CTR: Section 1 "flight", "interjurisdictional air service"; Section 4; Section 7; Section 11; Section 16; Section 17; Section 17.1

Motor Fuel Tax Act: Section 37

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 added two new subsections. The new subsection (7) allows the director to require an applicant for a registered consumer certificate provide a bond at the time of application. Under subsection (8), the director may refuse to issue the certificate if the bond is not provided.

The ability to require a bond allows the director to better account for the risk of non-payment of an amount to government before issuing a certificate.

Effective January 1, 2009, Bill 37 – Carbon Tax Act repealed subsections 20(3) – 20(6), which were transitional provisions that deemed persons who held registered consumer certificates under the Motor Fuel Tax Act as being issued a temporary registered consumer certificate effective July 1, 2008. Any registration certificates made under these provisions expired by December 31, 2008; therefore affected persons still had to apply to the director for a regular registered consumer certificate.

Effective July 1, 2008, section 20 authorizes the director to issue a registered consumer certificate to an applicant authorizing that person as a registered consumer for one or more fuels. A registered consumer does not pay tax the time of purchase or at the time of other events that are typically taxable (subsections 8(4), 9(3), 10(4)). Instead, a registered consumer self-assesses carbon tax on fuel used in the province at the end of each reporting period (CTR section 11).

A registered consumer is typically a consumer who buys fuel in the province but makes exempt use of that fuel. The benefit of being appointed a registered consumer is not paying the tax up front; accordingly, it enjoys the use of its funds, rather than being out of pocket while waiting for a refund.

To be appointed a registered consumer, the applicant must meet the requirements set out under CTR section 4. Three classes of persons may be appointed as registered consumers:

An interjurisdictional air service;
An interjurisdictional rail service; and,
A person who in the fiscal year ending on its date of application used at least 50 per cent of the fuel for which it is applying to be a registered consumer as either a feedstock (CTR section 16) or for a prescribed non-energy use (CTR section 17(1)).

If an applicant satisfies the registration requirements, then the director may, but is not required to, appoint the applicant as a registered consumer.

The appointment is subject to an agreement between the successful applicant and the director and may be limited to a type of fuel or a subcategory of a type of fuel (CTR section 7). The prescribed subcategories are diesel, heating oil, and locomotive diesel.

Unsuccessful applicants may appeal the decision of the director to the Minister (Section 56).

Section 21 – Issue Of Registered Air Or Marine Certificate

CTA - SEC. 21/Int.

References:

CTA: Section 1 “registered air service”, “registered air service certificate”, “registered marine service”, “registered marine service certificate”; Section 8; Section 9; Section 10; Section 12; Section 21

CTR: Section 5; Section 6; Section 11; Section 12

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 added two new subsections. Subsection (3) provides the director with the authority to require a bond at the time of application for a registered air service certificate. Subsection (4) provides that the director may refuse to issue the certificate if the bond is not provided.

The ability to require a bond allows the director to better account for the risk of non-payment before issuing a certificate.

Effective July 1, 2008, section 21 authorizes the director to issue a registered air service certificate or registered marine service certificate to an applicant.

To successfully apply, an applicant must (1) be considered suitable by the director, and (2) be permitted to be registered according to the regulations. The relevant regulation for registered air service certificates CTR section 5, and CTR section 6 for a registered marine service certificates. For details on the requirements of these sections, see CTA/REG. 5/Int. and CTA/REG. 6/Int.

A successful applicant must enter an agreement with the director, on behalf of the government, setting out the duties of the successful applicant.

The benefit of being a registered air or marine service is similar to that of being a registered consumer in that tax is not due at the normal time for other consumers (e.g. the time of purchase), but on self-assessment at the end of each reporting period. The difference between being a registered consumer and a registered air or marine service is that a registered consumer self-assesses on use (Section 11 and CTR section 11), while a registered air or marine service self-assesses on a wider range of taxable events (subsections 8(5), 9(4) and 10(6) and CTR section 12).

Note: Under a strict reading, the location of the use of fuel for the purpose of subsection 12(1) which details the requirement of registered consumers and registered air services to self-assess is irrelevant. However, in the spirit of the Act, the subsection is administered as if it reads “used in British Columbia”.

Section 22 – Limitation Respecting Type Of Fuel

CTA - SEC. 22/Int.

References: Section 1 “collector”, “fuel”, “registered air service certificate”, registered consumer certificate”, “registered marine service certificate”; Section 16; Section 20; Section 21; Schedule 1; Regulation 7

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 22 authorizes the director to limit the application of:

a collector’s appointment (Section 16),
a registered consumer certificate (Section 20), or
a registered air or marine service certificate (Section 21)

to a prescribed subcategory of a Schedule 1 category of fuel.

Subcategories are prescribed under Regulation 7. Currently, diesel fuel, heating oil, locomotive diesel fuel and industrial oil are prescribed. Generally, the prescribed fuels are subcategories of the Schedule 1 fuel “light fuel oil”.

The subcategories were created in an attempt to align the Act’s fuel categories with the fuel categories under the Motor Fuel Tax Act, and allow the director to limit the application of a registered consumer or service for light fuel oil to a particular use. For example, a rail carrier can be limited to light fuel oil used as locomotive fuel.

Section 23 – Suspension Or Cancellation Of Appointment And Certificates

CTA - SEC. 23/Int.

References: Section 1 “collector”, “refiner collector”, “registered air service certificate”, “registration certificate”, “registered consumer certificate”, “registered marine service certificate”; Section 24; Section 56; Section 59; Motor Fuel Tax Act Section 30 and 37.1

Interpretation (Issued: 2011/11; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 23 consistent terminology for the purposes of clarifying that the general rules for giving documents apply. For example, by replacing “delivered” with “given” and “provide” with “give”.

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009 added paragraph (b.1) to subsections 23(2) and 23(4) to reflect the addition of “refiner collector” to the Act as a subclass of collector.

Effective September 2, 2009, Bill 2 – Budget Measures Implementation Act (No. 2), 2009 added subparagraph (iv) to paragraphs 23(2)(b) and 23(4)(b) of the Act. These additions ensure that the director may suspend or cancel a certificate if a person refuses or neglects to comply with a requirement of the director to deposit a bond under Section 59.

Effective July 1, 2008, Section 23 sets out the events for which the director may suspend or cancel a person’s registration certificate, registered consumer certificate, registered air service certificate, or registered marine service certificate (generically, “certificate”).

In addition to discretionary or regulatory cancellation of a certificate under Section 23, automatic cancellation occurs in certain situations outlined under Section 24.

The director may suspend a certificate without notice for a period of 60 days for any of the following:

(a) knowingly giving false information in an application;

(b) if a person refuses or neglects to comply with:

i. the Act or the Regulations,

ii. a condition or limitation of the person’s appointment or agreement, or

iii. a provision of the agreement;

Under subsection 23(3), the director must advise the person of the reason for the suspension as soon as reasonably possible and give the person an opportunity to show why the suspension should be lifted.

Under subsections 23(4) and 23(5), for the same reasons, the director may cancel a person’s certificate, by giving notice. Before cancelling the appointment, the director must give the person notice of the reasons for the cancellation and provide the person with an opportunity to show why the certificate should not be cancelled.

Under subsection 23(6), cancellation takes effect on the later of the date of the notice and the date the notice is given.

Under subsections 23(7) and 23(8), the director does not need to give notice before cancellation of a certificate if that cancellation is required by the regulations.

Under subsection 23(9), cancellation does not relieve the certificate holder of any liability.

A person who has had their certificate cancelled may appeal the action to the Minister (Section 56).

Section 24 – Automatic Suspension And Cancellation

CTA - SEC. 24/Int.

References: Section 1 “collector”, “refiner collector”; Section 23

Interpretation (Issued: 2011/11, Revised: 2014/08)

Effective April 1, 2013, Bill 2 - 2013 Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added new subsections (2.2) and (2.3). The new subsections provide for automatic suspension or cancellation of a person's registration certificate under the Act if the person's registration certificate under the Provincial Sales Tax Act is suspended or cancelled.

Effective July 1, 2010, Bill 9 - Consumption Tax Rebate and Transition Act, 2010, as a consequential amendment to the Act, repealed subsections 24(3) and 24(4) as part of the transition from the social service tax to the harmonized sales tax.

Effective January 1, 2010, Bill 2 - Budget Measures Implementation Act (No. 2), 2009 added subsections (1.1) and (2.1) to Section 24 to reflect the addition of “refiner collector” to the Act as a subclass of collector.

Subsections 24(1.1) and 24(2.1) respectively add parallel suspension provisions to subsection 24(1) and 24(2) for refiner collectors.

Effective July 1, 2008, Section 24 provides that if certain appointments or certificates are cancelled or suspended under either the Motor Fuel Tax Act (MFTA) or the Social Service Tax Act (SSTA) the same class of certificate is cancelled or suspended under the Carbon Tax Act (CTA).

Subsection 24(1) provides that if an MFTA collector appointment for a substance is suspended under that Act, then the appointment of that person for the same substance is automatically suspended without notice for the same period under the CTA.

Subsection 24(2) provides that if an MFTA collector appointment for a substance is cancelled under that Act, then the CTA appointment of that person for the same substance is automatically cancelled without notice.

Subsection 24(3) provided that if an SSTA registration certificate was suspended under that Act, then the CTA registration certificate of that person was suspended without notice for the same period. These suspensions were typically related to dealers of propane and natural gas. This

Subsection 24(4) provided that if an SSTA registration certificate was cancelled under that Act, then the CTA registration certificate of that person was cancelled without notice. These cancellations were typically related to dealers of propane and natural gas. Subsections 24(3) and 24(4) applied prior to July 1, 2010 (see note above).

Subsection 24(5) provides that if an MFTA registration certificate for a substance is suspended under that Act, the CTA registered consumer certificate for that same substance is automatically suspended without notice for the same period.

Subsection 24(6) provides that if an MFTA registration certificate for a substance is cancelled under that Act, the CTA registered consumer certificate for that same substance is automatically cancelled without notice.

Under Section 23, suspension of cancellation of an appointment or certificate under Section 24 does not relieve the person of any liability.

Section 25 – Collection Of Tax On Sale Of Fuel To A Purchaser

CTA - SEC. 25/Int.

References: Section 1: “purchaser”, “registered air service”, “ registered consumer”, “registered marine service”, “retail dealer”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 25 requires a retail dealer to collect carbon tax at the time of selling fuel to a purchaser.

A person may fall under more than one category of person under the Act. Subsection 25(2) requires a person who is a retail dealer to comply with the obligations the Act imposes on a retail dealer even if that person is also of another class under the Act, specifically if that person is also either a collector or registered consumer, or both.

However, under subsection 25(3), if the purchaser of a fuel is a registered consumer, registered air service, or registered marine service, then the retail dealer is not required to collect carbon tax from that purchaser.

Section 26 – Duties Of Retail Dealers, Deputy Collectors And Collectors

CTA - SEC. 26/Int.-R.1

References: Section 1 “collectors”, “deputy collectors”, “retail dealers”; Section 8; Section 25; Section 30; Section 31; Section 32; Regulation 9; Motor Fuel Tax Act Section 34

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 26, along with sections 8, 25, 30, 31 and 32 work in concert to impose the tax and security scheme under the Act. Specifically, Section 26:

imposes the security scheme for collectors, deputy collectors and retail dealers,
ensures there tax is still remitted to government if there are any breaks in the security scheme, and
deems amounts collected from a sale to be collected on account of tax until the tax liability is satisfied.

Section 26 is subject to the more specific statutory sections that pertain to each class of persons (i.e., collectors – Section 30; deputy collectors – Section 31; retail dealers – Section 32).

Generally, tax is only imposed on the purchaser and the government demands security for tax to be collected from the collector (the person who imported or produced the fuel in the province).

The amount of security the government demands from a collector is equal to the amount of tax that would be levied on a purchaser, had a purchaser bought all the fuel produced or imported directly from the collector. In each sale in the distribution chain, the seller will demand security from a buyer who is the next level down, until the retail dealer finally demands the tax from the purchaser. Notionally, this tax is to be remitted up the chain to the government. But if this occurred, the government would be paid twice: once in security and once in tax. To avoid this result, each level in the distribution chain satisfies its obligation to pass the tax up by paying security up. In result, the collector pays security to the government, a deputy collector pays security to the deputy collector, who keeps it, the retail dealer pays security to the deputy collector, who keeps it, and the retail dealer collects tax from the purchaser, and the retail dealer keeps the tax it collects, thus reimbursing itself for the security it paid.

This scheme was chosen: (1) to protect revenue – the government gets paid first; (2) for administrative efficiency – the government deals with a small number of collectors at the top of the distribution chain rather than a large number of retail dealers at the bottom; and (3) to effect a “direct tax” rather than an “indirect tax” on the purchaser.

Example:

First, a collector imports gasoline. The collector has to pay security to the province equal to the tax that would be collectable if the fuel were sold to a purchaser at that time (subsection 30(1)).

Second, the collector sells the gasoline to a retail dealer. The retail dealer has to pay security to the collector equal to the amount of tax that would be collectable if the fuel were sold to a purchaser at that time (subsection 32(1)).

Third, the retail dealer sells the gasoline to a purchaser. The purchaser is required to pay tax at the time of sale (Section 8) and the retail dealer is required to collect the tax at the time of sale (Section 25).

Subsection 26(3) requires a retail dealer to pay the tax it collected from the purchaser to the collector, if the collector demands it. However, the retail dealer should not have to pay both tax and security to the collector; subsections 32(3) and (4) provide that if retail dealer has paid security to the collector and the collector has retained it, then the retail dealer has met its subsection 26(3) obligation to pay tax up to the collector. In result, the government gets paid first, each level of distribution collects from the level below, the retail dealer collects from the purchaser, and the retail dealer keeps the amount it collects.

Subsection 26(4) cures potential breaks in the security scheme by requiring a retail dealer or deputy collector who has not remitted tax (or been deemed by the more specific sections to have remitted tax) to remit the tax in accordance with Regulation 9.

Subsection 26(5) deems any money received (by a collector, deputy collector or retail dealer) for a sale of fuel, up to the full amount of tax owing, to be payment of tax owing by the purchaser. In other words, tax is deemed to be paid first.

R.1 Overview of Act (Revised: 2016/01)

The following provides a legislative overview of the collection and remittance scheme and security scheme. For a description of the security scheme see CTA/Sec. 26/Int.

Collection and Remittance Scheme (default scheme of the Act subject to security scheme)

A. Subsection 25(1) imposes an obligation on retail dealer to collect tax from the purchaser.

B. Subsection 26(1) imposes an obligation on collectors and deputy collectors who sell fuel to other deputy collectors and retail dealers to collect tax.

C. Subsection 26(2) imposes an obligation on a deputy collector who buys fuel from a collector or other deputy collector to remit tax (on demand) to the collector or other deputy collector.

D. Subsection 26(3) imposes an obligation on a retail dealer who buys fuel from a collector or deputy collector to remit tax (on demand) to collector or deputy collector.

E. Subsection 26(4) imposes an obligation on a deputy collector or retail dealer to remit tax to government if tax not remitted to the person from whom they purchased the fuel.

F. Subsection 28(2) imposes an obligation on the collector to remit all taxes collected to government.

Security Scheme

G. Subsection 30(1) imposes an obligation on a collector to pay security to government.

H. For the purposes of subsection 30(1), a sale from one refiner collector to another refiner collector is not the first sale of fuel in BC (subsection 30(1)). Therefore only the refiner collector that makes the first sale a person who is not another refiner collector is the collector.

I. Subsection 30(7) relieves the collector of the obligation to collect and remit the tax if security paid to government (and retained).

J. Subsections 31(3) and 32(3) allows collector who has paid security under subsection 30(1) to retain any security received from a deputy collector or retail dealer to whom they sold fuel instead of collecting tax.

K. Subsection 31(1) imposes an obligation on a deputy collector who buys fuel from a collector or other deputy collector to pay security to the collector or other deputy collector.

L. Subsection 31(4) relieves the deputy collector of the obligation to remit tax (both to the seller of the fuel and to government if the deputy collector has paid security.

M. Subsections 31(3) and 32(3) allows a deputy who has paid security on fuel that they have purchased to retain any security received from another deputy or retail dealer instead of collecting tax (relieves the deputy collector from obligation to collect tax).

Note: Unlike collectors, the relief for a deputy collector from obligation to collect and remit results from two separate transactions - 1) payment of security (to person from whom the deputy collector bought fuel) relieves their remittance obligation, and 2) receiving and retaining security (from person who bought fuel from them) relieves them of their collection obligation.

N. Subsection 32(1) imposes the obligation on retail dealer who buys fuel from collector or deputy collector to pay security to the collector or deputy collector.

O. Subsection 32(4) relieves the retail dealer of the obligation to remit tax (both to the seller of the fuel and to government) if the retail dealer has paid security.

Note: Unlike collectors and deputy collectors, retail dealers are only provided relief from the obligation to remit tax when the retail dealer pays security. There is no relief from the retail dealer's obligation to collect tax.

Section 26.1 - Relief Of Obligations To Extent Tax Remitted

CTA - SEC. 26.1/Int.-R.1

References: Section 16, Section 26, Section 31, Section 32

Interpretation (Issued: 2014/08)

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014, added section 26.1.

Section 26.1 relieves collectors, deputy collectors and retail dealers of certain collection, remittance, and security obligations in specific circumstances if a vendor's appointment is retroactive and the collector sold the fuel within the period beginning on the date the appointment was effective and ending on the date the appointment was made by the director.

R.1 Collectors and Relief of Obligations (Issued: 2016/01)

Under paragraph 26.1(e) of the Act, if a vendor's appointment is retroactive and the collector sold the fuel within the period beginning on the date the appointment was effective and ending on the date the appointment was made by the director, the collector is relieved of any obligation under subsection 30(1) to pay security with respect to that fuel, to the extent that the tax on that fuel has been remitted to the government.

For example, if a vendor's collector's appointment for gasoline was made retroactive to July 1, 2014 on December 1, 2014 by the director, the collector is relieved from their obligation to pay security on any gasoline sold for the first time after manufacture in, or import into, BC during the period of July 1, 2014 to December 1, 2014 if the tax on that gasoline had been remitted to the government. As a result the collector can't be assessed for failure to pay security on this fuel.

The relief under paragraph 26.1(e) is not provided with respect to sales of fuel beyond the date that the director makes the appointment, nor does it apply with respect to sales of fuel sold within the period beginning on the date the appointment was effective and ending on the date the appointment was made by the director, if no tax has been remitted to the government on the fuel. In these circumstances, the director must determine if the collector has paid security on the fuel as required.

Section 27 – Agent Of Government

CTA - SEC. 27/Int.

Reference: Motor Fuel Tax Act Section 34.1

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 27 deems a person who sells fuel to be an agent of the government, and as such is required to levy and collect the carbon tax.

This is a standard provision of the consumption tax statutes.

Section 28 – Remittance To Government

CTA - SEC. 28/Int.

References:

Act: Section 1 “natural gas”; Section 30

MFTR: Regulation 10

Motor Fuel Tax Act: Section 35

Interpretation (Issued: 2011/11, Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsections 28(3), 28(4) and 28(5) to provide for the remittance of amounts to the government at a time and in a manner prescribed by the regulation.

Subsection 28(5) was further amended to clarify that a person who receives security for the fuel in excess of the security the person paid on the fuel is required to remit to the government the difference between the security received and the security paid.

A new subsection 28(6) is added to provide that an amount remitted to the government by a collector or deputy collector under subsection (5) of this section, as amended by the Bill, may be retained by the government in satisfaction of the collector's or deputy collector's obligation to collect and remit the tax imposed by the Act on a purchaser of fuel.

Effective May 1, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, amended subsections 28(1) to (4) by changing the references "to the director" to "to the government." A new subsection 28(5) was also added.

Effective July 1, 2010, Budget Measures Implementation Act, 2010 amended subsection 28(1) to remove the reference to propane as propane is now subject to the payment of security under the Act. As a result, propane retailer dealers who were authorized to sell propane under the Act had their retail dealer’s certificates cancelled. See Notice 2010-004 – Notice to Propane Sellers – Carbon Tax for more information.

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009 amended subsection 28(1) to remove the word “marketable” as the distinction between raw and marketable natural gas was eliminated. Effective January 1, 2010, all natural gas is treated the same regardless of where it is used or sold, and is exempt from the security scheme.

Effective July 1, 2008, Section 28 required several different types of person to remit carbon tax, or amounts the person collected as if the amount were carbon tax, to the director.

Section 29 - Tax Collected Deemed To Be Held In Trust

CTA - SEC. 29/Int.

Reference:

Act: Section 35.1

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended section 29 to clarify that a person who collects an amount of tax or an amount as if it were tax under the Act is deemed to hold the amount in trust for the government until the amount is remitted to government, as required. This change ensures the provision is consistent with similar provisions in the other consumption tax statutes.

Effective July 1, 2008, Section 29 provides that if an amount of tax is collected or if an amount is collected as if it were tax, then:

the person who collected the money is considered to hold the amount in trust for the government, and
the amount collected is deemed to be held separate from the person’s money, assets or estate, even if it was not kept separate.

This is a standard provision of all consumption tax statutes.

Section 30 – Security From Collector

CTA - SEC. 30/Int. – R.1

References:

Act: Section 1 “collector”, “deputy collector”, “purchaser”, “retail dealer”, “security”, “vendor”; Section 14; Section 26; Section 31; Section 32; Section 33; Section 37; Section 38; Section 41; Section 44; Section 45; Section 47; Section 48; Section 50; Section 59; Section 60

MFTR: Section 8; Section 14; Section 23; Section 24

Motor Fuel Tax Act: Section 38

Interpretation (Issued: 2011/11, Revised 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 30(1) of the Act to clarify that collectors are required to pay security in an amount equal to the tax that would be collectable if the fuel were sold, at that time, to a purchaser who is liable to pay tax on that purchase of fuel. This ensures that the amount of security payable by collectors is based on a sale to a purchaser who is liable to pay tax, and not a purchaser who is exempt from tax.

Effective March 1, 2016, Bill 10, Budget Measures Implementation Act, 2016, added subsection 30(5.1) to provide a collector an exemption from the requirement to pay security in respect of fuel that is sold to a deputy collector or retail dealer who is exempt from the requirement to pay security in respect of that fuel.

Effective January 1, 2014, subsection 30(5)(a) was repealed and replaced by Bill 2 - Budget Measures Implementation Act, 2013. The provision was replaced to reference paragraph14(2)(g).

Effective May 1, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, amended added a new subsections (1.1) and (3). These additions were made for the purposes of the new section 1.1.

Effective January 1, 2010, subsection 30(3) was amended by Budget Measures Implementation Act (No. 2), 2009. This amendment was made to give the intended scope to an exemption from security for certain sales between businesses operating crude oil refineries. See CTA/SEC. 1/REFINER COLLECTOR/Int.

Effective July 1, 2008, Section 30 sets out the security obligations of collectors and facilitates the implementation of the security scheme.

The security scheme

In a model distribution chain, a vendor will import fuel, register as a collector, sell that fuel to a deputy collector, who in turn will sell it to a retail dealer, who sells the fuel to a purchaser. The collector will pay security to the province at the outset, with the amount of security equal to the tax that would be collectable if the fuel were sold, at that time to a purchaser who is liable to pay tax on that purchase of fuel. The deputy collector will pay the same amount of security to the collector, which the collector will keep to reimburse itself to the security it paid to the province. The retail dealer will pay security to the deputy collector, which the deputy collector will keep to reimburse itself for the security it paid to the collector. The purchaser will pay tax to the retail dealer, which the retail dealer will keep to reimburse itself for the security it paid to the deputy collector.

In effect, the government is paid up front and the tax is levied once, on the purchaser. One person may be one or more of a collector, deputy collector, retail dealer or purchaser, depending on the role the person plays in a particular transfer of fuel.

There are certain instances where a collector may apply for a refund of security paid, for instance when the collector makes a bad debt write-off, and may apply for a refund (see Sections 37, 38 and 41 and MFTR Sections 14, 23 and 24).

The director may estimate the security due from a person who has failed to pay security (Section 44) and may assess the collector (Section 45). In addition to the assessment, the director may impose a penalty (Section 47).

A board member of a corporation that has failed to pay security during the term of the board member is jointly and severally liable with the corporation to pay the amount of security the corporation failed to pay during that term, including penalties and interest on that amount (Section 48). The director may deem certain persons to be board members of the corporation, including persons not named as a board member but who performed some or all of the functions of a board member (Section 50).

The director may require a collector to pay a bond regarding security (Section 59) and may impose a lien regarding unpaid security (Section 60).

Deputy collectors’ and retail dealers’ security obligations are set out in Sections 31 and 32, respectively.

Section 31 – Security from Deputy Collector

CTA - SEC. 31/Int.-R.2

References:

Act: Section 1 “collector”, “deputy collector”, “purchaser”, “retail dealer”, “security”, “vendor”; Section 26; Section 30; Section 32; Section 33; Section 35; Section 37; Section 38; Section 41; Section 44; Section 45; Section 47; Section 48; Section 50

MFTR: Section 14; Section 23; Section 24; Section 42

Motor Fuel Tax Act: Section 39

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 31(1) to clarify that deputy collectors are required to pay security in an amount equal to the tax that would be collectable if the fuel were sold, at that time, to a purchaser who is liable to pay tax on that purchase of fuel. This ensures that the amount of security payable by deputy collectors is based on a sale to a purchaser who is liable to pay tax and not a purchaser who is exempt from tax.

Effective March 1, 2016, Bill 10, Budget Measures Implementation Act, 2016 added subsection 31(1.1) to provide that a deputy collector who buys fuel that is to be sold by the deputy collector outside of British Columbia is exempt from the requirement to pay security in respect of the fuel if that fuel is to be removed from British Columbia in the circumstances described in the subsection.

Effective July 1, 2008, Section 31 sets out the obligations of deputy collectors to pay and collect security.

Deputy collectors are wholesalers who are required to pay security on their purchases and may reimburse themselves security on their sales. There can be any number of deputy collectors throughout the security chain.

A person may be any one of, or combination of, a collector, deputy collector, retail dealer and purchaser:

A person may be both a collector and deputy collector (for example, the person may both make fuel and purchase fuel for resale to a person other than a purchaser);
A person may also be a deputy collector and a retail dealer (for example, the person purchases fuel, some of which it resells to a purchaser and some of which it resells to a person who is not a purchaser);
A person may be a deputy collector and a purchaser (for example, the person purchases some fuel to burn and some to resell).

For more information on the security scheme, see CTA/SEC. 30/Int.

A deputy collector must top up security paid when the tax rate changes (see Section 35 and MFTR Section 42).

There are certain instances where a deputy collector may apply for a refund of security paid, for instance when the retail dealer makes a bad debt write-off, and may apply for a refund (see Sections 37, 38 and 41 and MFTR Section 14, 23 and 24).

Section 30 and 32 set out the security obligations for collectors and retail dealers, respectively.

R.1 Alternatives to a Common Carrier Contract (Issued: 2016/06; Revised: 2017/09; Revised: 2021/08)

Paragraph 31(1.1)(c) of the Act allows fuel sellers to sell fuel security exempt to a deputy collector if a contract is in place at the time of the sale for the fuel to be removed from the province by a common carrier working for the deputy collector.

In some situations, the deputy collector and/or common carrier are reluctant to provide a copy of the contract to the fuel seller for reasons of business confidentiality, etc. If this occurs, the fuel seller has three options:

the fuel seller charges security and the deputy collector applies for a refund;
the fuel seller may request a copy of the contract with the contracted rates and total value deleted; or
the fuel seller may accept as an alternative to a copy of the contract, a letter signed by both the deputy collector and the common carrier providing specific information regarding the contract. If the fuel seller elects to follow this process, it should ensure the letter contains the following information:

a) a statement regarding the existence of a contract between the deputy collector and the common carrier who is working for the deputy collector.

b) a statement listing the types of fuel purchased that will be exported from BC.

c) a statement regarding the term (including both the start and end date) of the contract (if the contract term is longer than 24 months, an updated letter must be provided to the fuel seller prior to the end of the 24 month period).

d) a statement that both the deputy collector and common carrier recognize that any statements/representations in the letter are subject to further verification by the Ministry of Finance, and if the deputy collector is found to be not eligible to purchase the fuel exempt from security, either the fuel seller or the deputy collector may be assessed the security that should have been paid and may also be subject to penalties and/or interest.

e) a statement from the deputy collector that the deputy collector:

I. Is purchasing, using this letter, fuel for resale in another jurisdiction;

II. Will, for audit purposes, retain sufficient records to show that the fuel was exported from British Columbia and was received in another jurisdiction. (The types of acceptable records include, but are not limited to, the following: a copy of the fuel supply contract(s) with common carrier(s) who exported the fuel from British Columbia, copies of the related bills of lading and freight invoices for the fuel sales showing the location of pickup and location of delivery in the receiving jurisdiction and the signature of the individual accepting delivery of the fuel, copies of information reporting the import of the fuel into the receiving jurisdiction); and

Below, is a draft letter with the above information which can be used as a template:

Common Carrier Letter for [SELLER] (“Seller”)

Carrier Legal Name

Authorized Rep Name
Date:

Buyer Legal Name

Authorized Rep Name
Date:

Addendum to Common Carrier Contract Letter

Buyer further certifies:

Purchased fuel is for its own use or resale in another jurisdiction, or both.
Fuel purchased in BC for own use in another jurisdiction is subject to motor fuel tax.
100% of the volumes purchased using this common carrier letter will be exported from BC.
It will, for audit purposes, retain sufficient records to show that the fuel was exported from BC and was received in another jurisdiction. The types of acceptable records include, but are not limited to, the following:
- a copy of the fuel supply contract(s) with common carrier(s) who exported the fuel from BC.
- copies of the related bills of lading and freight invoices for the fuel sales showing the location of pickup and location of delivery in the receiving jurisdiction and the signature of the individual accepting delivery of the fuel.
- copies of information reporting the import of the fuel into the receiving jurisdiction.
If the term of the contract exceeds 24 months, Buyer agrees to provide an updated letter to Seller within one month prior to the expiry of the 24 month period.

Legal Name of Buyer

Authorized Rep Name
Date:

Additional Notes for the “Seller”

If the fuel seller has been appointed a collector, the seller should report this exempt sale on their Carbon Tax Return - Collector (FIN 175), using:
- Line 1 - Total Volume of Fuel sold in BC; and
- Line 3d - Fuel Sold Within BC and Exported.
If the fuel seller is not a collector, they can apply for a refund using Application for Refund of Carbon Tax Deputy Collector or Retail Dealer (FIN 143).
If a person seeks to purchase fuel from a fuel seller exempt from tax and the circumstances are such that a reasonable person would believe that the person is not entitled to purchase the fuel exempt from tax, the fuel seller should charge tax and promptly advise the director of the Carbon Tax Act and provide such details as the director requires.

R.2 Pipeline Operators as Common Carriers (Issued: 2016/06)

Paragraph 31(1.1)(c) of the Act provides an exemption from carbon tax for fuel that is purchased in BC for sale outside of BC and which is to be removed from BC by the deputy collector, or the person acting on behalf of the deputy collector, if that person has, at the time of the purchase, entered into a contract with a common carrier for the removal of the fuel from BC.

Section 32 – Security From Retail Dealer

CTA - SEC. 32/Int.

References:

Act: Section 1 “collector”, “deputy collector”, purchaser”, “retail dealer”, “security”, “vendor”; Section 26; Section 30; Section 32; Section 33; Section 35; Section 37; Section 38; Section 41; Section 44; Section 45; Section 47; Section 48; Section 50

MFTR: Section 14; Section 23; Section 24; Section 42

Motor Fuel Tax Act: Section 40

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 32(1) of the Act to clarify that retail dealers are required to pay security in an amount equal to the tax that would be collectable if the fuel were sold, at that time, to a purchaser who is liable to pay tax on that purchase of fuel. This ensures that the amount of security payable by retail dealers is based on a sale to a purchaser who is liable to pay tax and not a purchaser who is exempt from tax.

Effective July 1, 2008, Section 32 sets out the obligations of a retail dealer to pay security on the fuel it buys.

A person is a retail dealer by virtue of selling fuel at a sale in the province to a person who uses the fuel (i.e., a purchaser). The retail dealer is the last person in the distribution chain. For more information on the security scheme, see CTA/SEC. 30/Int.

Subsections 32(3) and 32(4) work with Section 26 to effect and preserve the security scheme. Under Section 26, it appears tax is levied on the final purchaser then remitted up to the government; under Section 26, each level can demand the tax from the level below. Under Section 32, a retail dealer has met its obligation to remit tax up the distribution chain if it has remitted security for the tax up the chain. This accomplishes several ends: the government gets paid first; a person is not obligated to remit both tax and security up; if there is a break in the security chain, revenue is protected because a person who has not remitted security up remains liable to remit tax up; and, the tax levied on the final purchaser is a direct tax, within provincial jurisdiction.

A retail dealer must top up security paid when the tax rate changes (see Section 35 and MFTR Section 42).

There are certain instances where a retail dealer may apply for a refund of security paid, for instance when the retail dealer makes a bad debt write-off, and may apply for a refund (see Sections 37, 38 and 41 and MFTR Sections 14, 23 and 24).

Section 30 and 31 set out the security obligations for collectors and deputy collectors, respectively.

Section 33 – Exemption From Security

CTA - SEC. 33/Int.

References: Section 1 “natural gas”; Section 30

Interpretation (Issued: 2011/11)

Effective July 1, 2010, Budget Measures Implementation Act, 2010 amended Section 33 to remove the reference to propane as propane is now subject to the payment of security under the Act. See Notice 2010-004 – Notice to Propane Sellers – Carbon Tax for more information.

Under Section 15, a vendor may sell natural gas (marketable natural gas and propane prior to January 1, 2010; natural gas and propane from January 1, 2010 to June 30, 2010) outside of the security scheme without being appointed a collector. However, before a person may sell natural gas, the person must obtain from the director a registration certificate under Section 18.

A registration certificate may be obtained by application to the director, and the director may require a successful applicant to enter an agreement with the director setting out the holder’s obligations under Section 19. Under Section 28, a retail dealer of natural gas must remit tax collected according to its reporting period and the agreement it has entered with the director under Regulation 10.

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009 amended Section 33 to remove the word “marketable” as the distinction between raw and marketable natural gas was eliminated. Effective January 1, 2010, all natural gas is treated the same regardless of where it is used or sold, and is exempt from the security scheme.

Effective July 1, 2008, Section 33 exempted natural gas (marketable natural gas prior to January 1, 2010) and propane from the security scheme. Industry was consulted during the development of the Act and advised that due to the nature of distribution of these fuels, volumes sold and traded during distribution were difficult to assess until the fuel has been acquired by the final purchaser. The Ministry, though intent on implementing a direct tax through the security scheme, accepted these points and exempted natural gas and propane from the security scheme.

When natural gas (marketable natural gas prior to January 1, 2010) or propane was sold at a retail sale, the retail dealer was required to collect the tax on that sale and remit it to the director.

Section 34 – Change In Tax Rate And Collection Of Tax

CTA - SEC. 34/Int.

References: Section 1 “scheduled rate change”, “unscheduled rate change”; Section 35

Interpretation (Issued: 2011/11, Revised: 2014/08)

Effective May 14, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, repeals subsection 34(2).

Effective July 1, 2008, Section 34 outlines what a retail dealer must do in the case of (1) a schedule rate change (the rate change on July 1 of a given year), and (2) prior to May 14, 2014, an unscheduled rate change.

If a scheduled rate change occurs after a retail dealer sells fuel to a purchaser but before the purchaser takes delivery, then the retail dealer must collect tax at the rate in effect at the time of delivery under subsection 8(2). For the purpose of security, the retail dealer in such a case is deemed to own the fuel on the date of the rate change and must remit to the director an additional amount of security under Section 35.

Section 35 – Change In Tax Rate And Payment Of Security

CTA - SEC. 35/Int.

References:

Act: Section 1 “scheduled rate change”, “unscheduled rate change”; Section 31; Section 32; Section 34

MFTR: Section 42

Motor Fuel Tax Act: Section 40.1

Interpretation (Issued: 2011/11, Revised: 2017/05)

Effective August 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 35(6) to provide that any security owing as a result of a tax rate increase must be paid to the government and not to the director. This change ensures consistency with other consumption tax statutes.

Section 35(7) is amended to clarify that additional security payable by deputy collectors and retail dealers as a result of a tax rate increase is calculated based on a sale to a purchaser who is liable to pay tax and not to a purchaser who is exempt from tax. Similarly, subsection 35(10) is amended clarify that a refund payable to a deputy collector or retail dealer as a result of a tax rate decrease is calculated based on a sale to a purchaser who is liable to pay tax and not to a purchaser who is exempt from tax. Both of these changes work to protect government revenue in the event of a tax rate change.

Effective May 14, 2012, Bill 21, Budget Measures Implementation Act, 2012, repeals subsection 35(3).

Effective July 1, 2008, Section 35 sets out what additional security, if any, a collector, deputy collector and retail dealer must pay in the event of either a scheduled rate change (the rate change that occurs on July 1 of a given year) and an unscheduled rate change (any other rate change).

Generally, a person holding inventory on the date of a rate change must provide an inventory as of that date and, if the rate of tax increases, remit additional security on that inventory.

Section 36 – Refund Of Taxes Paid Or Remitted

CTA - SEC. 36/Int.

Reference: Motor Fuel Tax Act Section 20

Interpretation (Issued: 2011/11; Revised: 2012/03, 2014/08)

Effective May 1, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, adds a new subsection (2.1) that specifies that subsection (2) applies to a person who sells fuel in a sale to which section1.1(2)(a) to (c) applies as if the person were a collector.

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 adds subsection 3 to Section 36.

Subsection 3 allows for refunds to retail dealers of natural gas where the retail dealer remitted an amount as collected taxes that the retail dealer neither collected nor was required to collect.

The new subsection mirrors the refund available to a collector under subsection (2).

Effective July 1, 2008, Section 36 provides that if a person has paid tax when not required to do so, or if a collector has remitted an amount as collected taxes that the collector neither collected nor was required to collect, the director must refund this amount to the person.

Section 37 – Refund Of Security

CTA - SEC. 37/Int.

References:

Motor Fuel Tax Act: Section 14; Section 14.1; Section 20.11

Interpretation (Issued: 2011/11, Revised: 2017/05)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 added subsection 37(2.1). The new subsection 37(2.1) prohibits a refund of security under subsection 37(2) related to sales of coloured fuel by a fuel seller who does not have the required authorization to colour or sell coloured fuel under the Motor Fuel Tax Act.

Effective May 1, 2012, Bill 21, Budget Measures Implementation Act, 2012, adds a new subsection (1.1).

Effective July 1, 2008, Section 37 provides that if a person had paid security on fuel where there was no obligation to do so, or if the fuel was ultimately sold to a purchaser not liable to pay tax, then the director must grant a refund. If the director provides a refund to a person, that person may not also seek a refund of security from their supplier.

Section 38 – Refund Or Deduction For Bad Debts

CTA - SEC. 38/Int.

References:

CTR:Section 24

Motor Fuel Tax Act: Section 21

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective June 9, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaced section 38. The section authorizes a collector, deputy collector or retail dealer to make a deduction or claim a refund on the sale of fuel when they write off within 4 years of the date on which they remitted or paid tax or security on the fuel. Accordingly, the date of the write-off is the starting point for the limitation period in which the refund must be claimed.

The amendment also prevents collectors and retail dealers from making a deduction and claiming a refund for the same amount.

Effective July 1, 2010, Budget Measures Implementation Act, 2010 amended subsections 38(5) and 38(7) to remove the references to propane as propane is now subject to the payment of security under the Act.

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009 amended subsections 38(5) and 38(7) to remove the word “marketable” as the distinction between raw and marketable natural gas was eliminated. Effective January 1, 2010, all natural gas is treated the same regardless of where it is used or sold, and is exempt from the security scheme.

Effective July 1, 2008, Section 38 gives the director the discretionary power to grant a refund to collector, deputy collector or retail dealer if that person has remitted tax or paid security on fuel, the buyer of the fuel subsequent fails to pay, and the person writes off as unrealizable or uncollectible the amount owing by the buyer. The amount of the refund is determined by the following formula under CTR section 24.

For more information, see CTA/REG. 24/Int.

Section 39 – Refund For Interjurisdictional Air Or Marine Travel Or Transport

CTA - SEC. 39/Int.

References: Regulation 27; Regulation 28

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 39 provides that fuel used for interjurisdictional air or marine travel or transport must be refunded by the director, as provided by the regulations. This section provides the authority to grant refunds in circumstances where a taxpayer is not eligible for an exemption but still uses fuel in circumstances which were not intended to be taxed under the Act because the emissions occur outside of British Columbia.

The applicable regulations are as follows:

Regulation 27 Refunds for interjurisdictional passenger and cargo flights

Regulation 27.1: Refunds for interjurisdictional air services flights

Regulation 28: Refunds for interjurisdictional marine travel or transportation.

Section 39.1 - Refund For Farmers

CTA - SEC. 39.1/Int.

References: Section 14, Regulation 29.1, Regulation 29.2

Interpretation (Issued: 2014/08)

Effective January 1, 2013, Bill 2 - Budget Measures Implementation Act, 2013 adds section 39.1.

Section 39.1 is the refund counterpart to subsection 14(2)(g) and provides a refund of carbon tax paid by a farmer on prescribed fuel used for prescribed purposes. Regulations 29.1 and 29.2 set out the prescribed uses and fuel.

Section 40 – Refunds Authorized Or Required Under The Regulations

CTA - SEC. 40/Int.

References: Section 84; Regulations 24 – 29; Regulations 40 – 40.1

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 40 provides statutory authority for the director to pay a refund authorized by the regulations, and also requires the director to pay a refund if required by the regulations. See Regulations 24 – 29 and Regulations 40 – 40.1 for refunds provided by the regulations.

The Lieutenant Governor in Council has authority to make regulations to provide refunds under Section 84.

Section 41 – Claim For Refund

CTA - SEC. 41/Int.

Reference: Motor Fuel Tax Act Section 25

Interpretation (Issued: 2011/11, Revised 2014/02)

Effective July 1, 2008, Section 41 provides that in order for a refund to be granted by the director, an application must be submitted. The director will specify the form of the application, and the applicant must provide information to the director sufficient to satisfy the director that the applicant is entitled to the refund.

Effective July 25, 2013, Bill 2 - Budget Measures and Implementation Act, 2013 repealed and replaced section 41(1). The subsection requires that to claim a refund, a person must submit a written application in the form and manner satisfactory to the director, the application must be signed by the person who paid or remitted the amount claimed, and the person must submit any information or document required by the director.

Subsection 41(2) requires that a refund claim by a corporation must be signed by a board member or authorized employee of the corporation.

Effective July 25, 2013, Bill 2 - Budget Measures and Implementation Act, 2013 amended section 41(2). The words "who paid the amount" were replaced with the words "who paid or remitted the amount."

Effective July 25, 2013, Bill 2 - Budget Measures and Implementation Act, 2013 added subsection (2.1). The new subsection provides the director with the power to refuse to pay a refund if the requirements of subsection (1) and (2) of section 41 are not met.

Subsection 41(3) is a new type of provision to consumption tax statutes that was also added to the Motor Fuel Tax Act (see MFTA subsection 25(3)) that provides a legislative basis for the practice of netting out tax or security owing and the amount of the refund claimed. The subsection provides that instead of submitting a refund application, the person can record the refund amount on their return and deduct the refund amount from the tax or security required to be remitted by the person.

For example, a collector is required to remit $10,000 of security on all sales for the month of August, and is entitled to a refund of $1,000 for a sale to an exempt purchaser in August. The collector may deduct the refund claim from the total payable and pay a net amount of $9,000.

Section 42 – Refund Limits

CTA - SEC. 42/Int.

Reference: Section 38; Motor Fuel Tax Act Section 26

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective June 9, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 42. The amendment adds a specific 4 year limitation period for a person claiming a bad debt refund. The amendment prevents a person from receiving a refund under section 38 (5) (bad debt refund) of the Carbon Tax Act, if the claim for the refund is more than 4 years after the date the person writes off the amount as unrealizable or uncollectable.

The previous time limit of 4 years after an amount was "paid" was more difficult to interpret for the purpose of a bad debt write-off.

Effective July 1, 2008, Section 42 provides that the minimum refund payable is $10. Therefore, refunds of less than $10 are not refundable, consistent with the other consumption tax statutes.

Note: the $10 minimum is per refund claim, and not per item. For example, a refund of 20 items of $1 each is eligible for a refund.

Subsection 42(2) provides a refund limitation period, which requires that a claim must be made within four years of the time the amount was paid. This is also consistent with the other consumption tax statutes.

Section 43– Inspection And Audit Powers

CTA - SEC. 43/Int.

References: Section 1 “assessment”; Section 44; Section 47; Motor Fuel Tax Act Section 41

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 43 provides the director with audit and inspection powers, including what searches require a warrant and the grounds on which a justice may issue a warrant for the purpose of the Act. The section also requires a person not to inhibit a lawful search.

In general, Section 43 allows the director to enter the following premises, without a warrant, at any reasonable time:

the business premises occupied by a person;
the premises where the records of the person are kept
a site at which fuel is manufactured, sold, stored or used

However, the director is not permitted to enter a place that is a dwelling occupied as a residence, without either (a) consent of the occupier, or (b) a warrant.

Subsection 43(1) provides that the director may perform any of the following actions to determine whether the Act and regulations are being or have been complied with:

(a) inspect, audit and examine books of account or other records;

(b) to inspect, ascertain the quantities of, and take samples of fuel.

Subsection 43(2) mirrors subsection 43(1), with the exception that it refers to combustibles.

Subsection 43(3) requires the occupier of a site to produce all required records to the director and answer all relevant questions of the director.

Subsection 43(4) prohibits the director from entering a place that is a dwelling occupied as a residence without either (a) the consent of the occupier, or (b) the authority of a warrant obtained under subsection 43(5).

Subsection 43(5) provides that a justice may issue a warrant for the purposes of subsections 43(1) – (2) if the justice is satisfied on oath that there are in a place records or other things for which there are reasonable grounds to believe that they are relevant to the inspection.

Subsections 43(6) – (7) require a person to provide all records the director considers necessary to determine whether the person has complied with the Act and Regulations, and not to hinder, prevent or attempt to prevent the inspection.

If the records are insufficient to determine the amount owing, the director may make an estimate and assess based on the estimate. See CTA/SEC. 44/Int.

In addition to an assessment, the director may impose a penalty or interest or both. See CTA/SEC. 47/Int.

Section 44 – Estimate Of Unremitted Tax Or Unpaid Security

CTA - SEC. 44/Int.

References:

Act: Section 1 “tax”; Section 51

Motor Fuel Tax Act: Section 42

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 42(1) to provide the director with the authority to make estimates for other amounts not remitted as required under the Act, such as amounts collected as if they were tax or security, and to deem those amounts to be the amount payable.

There are provisions in the Act that require persons to remit amounts owing under the Act that are not tax or security, such as amounts collected as if they were tax and amounts received as if it were security (e.g. section 28). This amendment protects government revenue by ensuring that the director has the authority to make an estimate of such an amount for the purposes of assessing a person.

Effective July 1, 2008, subsection 44(1) provides that the director may estimate the amount owing by a person if:

a person fails to file a return,
pay or remit tax,
pay security as required under the Act, or,
the records of the person do not substantiate a return of the person for tax or security.

On making an estimate under this section, the director must issue a notice of assessment under Section 51.

Section 45 – Assessment Of Amounts

CTA - SEC. 45/Int.

References:

Act: Section 1 “assessment”, “security”, “tax”; Section 51

Motor Fuel Tax Act: Section 43

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended section 45 to help ensure that the director has the authority to make an assessment of any amount owing under the Act, including amounts that are not tax or security such as amounts collected as if they were tax and amounts received as if were security. New amendments also help to create fairness for taxpayers by limiting the circumstances in which the government would retain carbon tax revenue twice for the same fuel.

A new subsection 45(0.1) makes the director's authority to assess a person for failing to pay tax permissive, rather than mandatory, which ensures that the director is not required to assess two different persons for the same amount owing to government.

Subsection 45(1) is amended to clarify that the director has the authority to assess a person for failing to remit other amounts as required under the Act, such as amounts collected as if they were tax and amounts received as if they were security. Subsection 45(1.1) is also amended to expand the circumstances under which subsection 45(1) does not apply, such as where, with respect to the fuel, taxes have already been paid to government, a penalty has already been imposed under section 46 and paid to government, or if tax or security had been paid, it would be refundable.

A new subsection 45(2.01) creates a set of circumstances under which the director is not required to assess a person under subsection 45(2) for claiming a refund or taking a deduction to which they were not entitled. These circumstances include the following with respect to the sale of the fuel by the person or subsequent sale of the fuel:

the tax required to be paid or remitted has been paid or remitted,
a penalty has been imposed and paid in accordance with section 46 for failing to collect the tax, or
a person to whom the fuel was sold would be entitled to a refund had they paid the tax or security.

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 45.

A new section 45(1.3) was added. Section 45(2) requires the director to assess a person that made a deduction under section 41(3) that was in excess of due to the person. Under section 41(3) a person who is required to file a return for tax or security may instead of submitting a refund application, make a deduction from their return. However, the amount claimed is still a refund. Section 41(3) simply provides the claimant with a choice as to how they claim a refund. Conversely, section 38 is structured so as to provide either a refund or a deduction. The deduction is not a refund but rather a deduction of "the amount of the refund payable to the collector."

The new section 45(1.3) explicitly requires the director to assess a person who has made an excess deduction under section 38(3).

New subsections (2.1) and (2.2) were added as a consequence of the changes to the definition of "tax." The definition of "tax" was amended and, for the purposes of section 45, does not include an amount required to be paid under section 53(2) or 65(4). Subsection (2.1) and (2.2) require the director assess a person that has not paid an amount required under section 53(2) or section 65(4).

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014, amended section 45 by adding subsections (1.1) and (1.2).

Subsection 45(1.1) provides that subsection (1) does not apply to the extent the director is satisfied that the person to whom the fuel was sold would be entitled to a refund of the tax or security.

Subsection 45(1.2) provides that if subsection (1) does not apply due to subsection (1.1), then the security is no longer an amount owing to government.

Effective July 1, 2008, Section 45 requires the director to assess a person who has underpaid tax or security, or received an excess refund of tax or security.

On making an assessment under this section, the director must issue a notice of assessment under Section 51.

Section 46 – Failure To Collect Taxes

CTA - SEC. 46/Int.

References:

Act: Section 1 “tax”; Section 51

MFTR: Seections 36 – 37

Motor Fuel Tax Act: Section 44; Section 45

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended section 46 by expanding the circumstances under which the director must not impose a penalty under that section. A new paragraph 46(2)(c) provides that the director must not impose a penalty if the person has already been assessed under subsection 45(2) of the Act. A new paragraph 46(2)(d) states that the director must not impose a penalty in situations where subsection 45(2) does not apply as a result of subsection 45(2.01). Together, these amendments limit the circumstances in which the government would retain carbon tax revenue twice for the same fuel.

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014, amended section 46 by adding a new subsection (1.1) and repealing and replacing subsection (2).

Subsection 46(1.1) provides for a reduced penalty in two situations.

First, if the director must impose a penalty under subsection (1) and the director is satisfied the person liable to pay the tax has paid the tax to government, the director may impose on the person who should have collected the tax a penalty equal to the amount of the penalty that would otherwise be imposed under that subsection less the amount of tax paid to the government.

Second, if the director must impose a penalty under subsection (1) and the director is satisfied the person liable to pay the tax would be entitle to a refund of the tax if the person had paid the tax, then the director may impose a penalty equal to the amount of the penalty that would otherwise be imposed under that subsection less the amount of the refund of tax to which the person would be entitled.

Subsection 46(2) provides that the director must no impose a penalty on a person under subsection (1) or (1.1) if the person is assessed for failing to pay security under section 45(1) or if, in accordance with section 45(1.1), section 45(1) does not apply.

Effective July 1, 2008, Section 46 provides the consequences for failure to collect tax. Each level in the distribution chain has an obligation to collect tax from the level below (Sections 25 – 29).

On making a penalty under this section, the director must issue a notice of assessment under Section 51.

Section 47 – Penalty For Failure To Remit Or Pay Taxes Or Security

CTA - SEC. 47/Int.-R.1

Reference: Section 15, Section 16, Section 26.1, Section 30, Section 51

Interpretation (Issued: 2011/11, Revised: 2017/09)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended section 47 to provide the director with the authority to impose penalties on persons that are in addition to assessments for amounts owed to government, such as amounts collected as if they were tax and amounts received as if they were security, as well as amounts that a person deducts on a return or claims as a refund that is in excess of the amount they are entitled to deduct or receive.

Bill 14 added a transitional provision for this section to provide that the new penalties under subsection 47(1) for a person who deducts an amount in excess of the amount they are entitled to deduct or receives a refund in excess of the amount they are entitled to receive may be imposed by the director within 4 years before the date the amendments came into force.

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014, amended section 47 by repealing and replacing subsections (2) and (3) and adding new subsections (4) and (5).

Subsection (2) provides if the director is satisfied that a vendor sold, within British Columbia, a type or subcategory of a type of fuel before the vendor was appointed a collector for that fuel, the director may impose on the vendor, a penalty equal to the greater of:

10% of the security that the vendor would have been required to pay under section 30 if the vendor had been a collector who was not exempt from the requirement to pay security.
The difference between the total tax payable in respect of the fuel and the amount of tax and security paid or remitted to the government in respect of that fuel.

Subsection (3) provides that if the director is satisfied that a vendor whose appointment is retroactive in accordance with section 16(2.3) sold fuel in the period described in section 26.1, the director may impose a penalty on the vendor equal to 10% of the security that that vendor would have been required to pay under section 30 if at the time of sale the vendor had been a collector.

Subsection (4) provides that for the purposes of subsection (5), a vendor whose appointment is retroactive in accordance with section 16(2.3) is deemed to have been appointed a collector at the time the director made the appointment.

Subsection (5) provides that if the director is satisfied that a vendor wilfully sold fuel contrary to section 15, the director may impose on the vendor, a penalty equal to the amount of security that the vendor would have been required to pay under section 30 if the vendor at the time of sale had been a collector who was not exempt from the requirement to pay security.

Effective March 3, 2010, Bill 2, Budget Measures Implementation Act, 2010 added subsections (2) and (3) to Section 47 and renumbered the former Section 47 as subsection 47(1).

Subsection (2) provides that provides that if a vendor sold fuel for which the vendor was not appointed as a director under Section 15, the director must impose a penalty equal to the security that the vendor would have been required to pay if the vendor, at the time of sale, had been a collector.

Subsection (3) provides that if a vendor wilfully sold fuel for which the vendor was not appointed as a director under Section 15, the director may impose an additional penalty on the vendor for that equal to the security that the vendor would have been required to pay if the vendor, at the time of sale, had been a collector who was not exempt from the requirement to pay security under Section 30.

Effective July 1, 2008, Section 47 provides that the director may impose an additional penalty on a person for that person’s failure to remit tax or security as required. This is a standard provision found in other consumption tax statutes.

R.1 Application of Penalty under Subsection 47(2) (Issued: 2016/01; Revised: 2017/09)

Subsection 47(2) of the CTA provides the director with discretion to impose a penalty where a vendor sold fuel before they were appointed a collector. The penalty only applies when a vendor sold fuel before the vendor was appointed a collector for that fuel. This means that if a vendor is appointed a collector retroactively to a point before they sold the fuel, the subsection 47(2) penalty cannot apply because the vendor, under subsection 16(2.3), would have been a collector at the time the fuel was sold. However, the subsection 47(3) penalty would be available in that situation

The policy rationale for the subsection 47(2) penalty is to provide some consequence for non-compliance with the security scheme even though the government may have received all taxes owing.

If a vendor chooses not to apply to be retroactively appointed, they should not have a lesser consequence than a vendor that does apply to be retroactively appointed.

Given that vendors that apply retroactively may be charged interest (either 60 days - or for the full period) and are subject to a 10% penalty (subsection 47(3)), the penalty for vendors who do not apply retroactively under subsection 47(2) should also be applied in most cases. Otherwise, the ministry's policy creates a disincentive to apply to be a collector retroactively.

However, the one circumstance in which the director may choose not to apply the penalty is where a vendor is no longer operating in BC and made limited sales of fuel to collectors, all of whom paid security on the fuel to government. In this case, there is no revenue loss to the province, other than the additional interest that could have been earned (likely no greater than 60 days).

In addition, although there is no limitation period on the application of the penalty under subsection 47(2), the director will generally not apply the penalty to sales that occurred greater than 4 years prior unless the vendor was willfully selling fuel without a collector appointment.

Section 48 – Board Member’s Liability

CTA - SEC. 48/Int.

References: Section 50; Section 52; Motor Fuel Tax Act Section 45.1

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 48. The amendment clarifies that the joint and several liability of a board member under the section includes liability for interest on penalties.

The amendment also updates cross references to provisions in the Bankruptcy and Insolvency Act (Canada) and the Companies' Creditors Arrangement Act (Canada).

Effective July 1, 2008, Section 48 imposes liability on a board member of a corporation for failure of a corporation to pay or remit tax or security as required by the Act, subject to a number of limits, and subject to the defense that the board member behaved reasonably (known as a “due diligence” defense). Section 48 is a standard provision found in other consumption tax statutes.

Under subsection 48(1), a board member of a corporation is liable for the tax or security required to be paid or remitted by the corporation, but which the corporation failed to pay. The board member may be liable for the entire amount or may share that liability with other board members or the corporation or both.

However, under subsection 48(2), this liability only arises if at least one of the following events occurs:

a) The director has filed a certificate of debt owed by the corporation with the court under Section 61;

b) The corporation has dissolved or commenced proceedings to liquidate or dissolve;

c) The corporation has taken action (assignment in bankruptcy, filed a notice of an intent to make a proposal with an official receiver, or made a proposal) under the Bankruptcy and Insolvency Act (Canada);

d) A receiving order has been made against the corporation under the Bankruptcy and Insolvency Act (Canada);

e) The corporation has obtained a court order granting a stay of proceedings under subsection 11(3) of the Companies’ Creditors Arrangement Act (Canada); or,

f) The corporation has taken action analogous to paragraphs (c) to (e) above in another jurisdiction.

Under subsection 48(3), a board member may defend against liability by showing they exercised the care, diligence and skill that a reasonably prudent person would exercise to prevent the corporation’s failure to remit tax or pay security as required by the Act.

Under Section 50, a person who acts as a board member may be deemed to be a board member.

The amount in which the director may assess the board member is determined by Section 52.

Section 49 – Refunds When Joint And Several Liability

CTA - SEC. 49/Int.

References: Section 48; Motor Fuel Tax Act Section 20.2

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 49 provides that if a board member has overpaid an amount due under Section 48 (board member’s liability for failure of corporation to remit tax or pay security), then the board member may receive a refund, and sets out how the refund is to be calculated.

Subsection 49(1) provides that if only one board member has paid the debt, the excess will be refunded to that board member. If two or more board members have paid the debt, the excess will be divided proportionally between the board members, up to the amount paid by each board member. For example, if two board members paid, the excess will be divided evenly between them up to the amount each paid. After the refunds have been made to the board members, any remaining excess will be refunded to the corporation.

Section 49 operates in spite of the relevant refund provisions that require the payment of a refund of amounts collected or security to a corporation (Sections 36(2) and 37).

Subsection 49(2) sets out that a refund to two or more board members must be based on the ratio of the amounts paid by the board members who are joint and severally liable with the corporation for the period of the refund.

Subsection 49(3) provides that a refund under Section 49 may only be paid to a board member or corporation that has applied for a refund.

Section 50 – Deemed Board Member

CTA - SEC. 50/Int.

References: Section 48; Section 52; Motor Fuel Tax Act Section 45.2

Interpretation (Issued: 2011/11; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under subsection 50(5) consistent terminology for the purposes of clarifying that the general rules for giving documents apply.

Effective July 1, 2008, Section 50 allows the director to deem certain persons to be board members of a corporation, with the result that such persons may be liable for the failure of the corporation to pay tax or security (Section 48). The ability of the director to deem a person a board member is subject to the limitations discussed below.

Subsection 50(1) allows the director to request information from a person or a corporation to confirm or rebut the director’s belief that the person has performed some or all of the functions of a board member despite not being on the board of the corporation.

Subsection 50(2) provides that the director may deem a person to be a board member if the person or the corporation fails or refuses to provide information or if the information provided confirms the director’s belief that the person performed some or all of the functions of a board member.

Subsection 50(3) states that the director must not decide that a person performed some or all of the functions of a board member solely on the basis that the person:

Participated in management of the corporation under direction of a shareholder, a board member or a senior officer,
Was a professional who’s primary participation in the management of the corporation was the provision of professional services,
Was a trustee in bankruptcy in the course of administering the bankrupt’s estate, or
Was a receiver, receiver manager or secured creditor whose primary participation in the management of the corporation was to enforce a debt obligation of the corporation.

Subsection 50(3) states that if a person is deemed to be a board member, the person’s term as board member is the period during which they performed some or all of the functions of a board member.

Subsection 50(3) states that if the director deems a person to be a board member then the director must immediately notify the person and the relevant corporation.

Subsection 50(5) states that the director must give written notice, when deeming a person a board member, to the person to whom the decision relates and to the corporation.

Section 51 – Notice Of Assessment

CTA - SEC. 51/Int.

References: Section 1 “assessment”; Section 55; Section 55.1; Motor Fuel Tax Act Section 46

Interpretation (Issued: 2011/11; Revised: 2016/01; Revised: 2023/08)

Effective March 25, 2021, Bill 12, Miscellaneous Statutes (Minor Corrections) Amendment Act, 2021, provides under subsection 51(1.01) and 51(1.02) consistent terminology for the purpose of clarifying that the general rules for giving documents apply by replacing “issued” with “given”.

Effective April, 2020, Bill 2, Budget Measures Implementation Act, 2018, amends section 51(1)(b) to add that the director must also give a notice of assessment when a fee is imposed.

Subsection 51(1.01) and 51(1.02) are added. Under these new subsections, in the case where a person is audited under multiple acts outside of the province, this amendment provides administrative flexibility for the province to issue one notice of assessment under the Carbon Tax Act (i.e., bill one taxpayer account) where the fee is also imposed under the Provincial Sales Tax Act and/or Motor Fuel Tax Act.

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 51 consistent terminology for the purposes of clarifying that the general rules for giving documents apply. For example, by replacing “issue” with “give”.

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 51.

Subsection (1) was reworded to be consistent with other taxation statutes. Subsection (1) was also made subject to a new subsection (1.2). The new subsection authorizes the director to give a notice of assessment to the custodian or trustee in bankruptcy of a person in relation to whom the director has made an estimate or assessment or has imposed a penalty.

Not only does the amendment make the section consistent with similar provisions of other taxation Acts, the amendment also authorizes the director to give a notice of assessment to a person who has the ability to pay amounts owing to government - the custodian or trustee. In certain situations, the person with the liability may no longer have control over the assets required to satisfy a liability to the government. The amendment will provide government a greater ability to collect amounts owing.

Effective June 23, 2014, Bill 8 - Budget Measures Implementation Act, 2014, amended section 51 by adding subsection (1.1).

Subsection 51(1.1) provides that if the director assesses interest under section 55 or 55.1, the director may give a notice of assessment to the person liable to pay the amount of interest assessed.

Effective July 1, 2008, Section 51 requires the director to give a notice when the director has made an estimate or assessment, or impose a fee or penalty.

Subsection 51(1) requires the director to give a notice of assessment to a person on making an estimate or assessment for tax or security owed, or on imposing a fee or penalty. This is a standard provision in the consumption tax statutes.

Subsection 51.01 provides that the director may include in a notice of assessment given to a person, a fee imposed under section 41.1 [fee for attending at location outside British Columbia] of the Motor Fuel Tax Act as if the fee were a fee imposed under section 43.1 of this Act under certain conditions.

Subsection 51.02 provides that the director may include in a notice of assessment given to a person under subsection (1) of this section a fee imposed under section 196.2 of the Provincial Sales Tax Act as if it were a fee imposed under section 43.1 of this Act under certain circumstances.

Subsection 51(2) provides that a notice of assessment is proof of the amount owing and the burden of proving otherwise is on the person to whom the notice is given.

Subsection 51(3) provides that an estimate, assessment, or penalty is valid and binding despite any errors, defects or omissions, unless amended, changed or varied on appeal or by reassessment.

Subsection 51(4) provides that subject to being amended, changed, or varied by reassessment, a fee imposed under section 43.1 is valid and binding despite any error, defect or omission in the fee or in procedure.

Section 52 – Assessment Against Board Member

CTA - SEC. 52/Int.

References: Section 48; Section 50; Motor Fuel Tax Act Section 46.1

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 52. The amendment clarifies that the director may assess a board member under the section for interest on penalties.

The definition of tax, which includes penalties and interest, caused ambiguity in terms of determining the amount a board member may be assessed when read within the previous provision. The intention is for the amount to include any penalties as well as interest on the tax or security and on any penalties imposed.

Effective July 1, 2008, Section 52 provides a director’s liability provision, which is a standard provision that can be found in other consumption statutes.

Subsection 52(1) states that if the director decides that a board member is jointly and severally liable with a corporation for an amount under Section 48, that board member may be assessed for taxes not collected or remitted or security not paid by the corporation during the board member’s term.

Subsection 52(2) deems that an assessment must be made within two years after the board member ceased to be a board member.

Section 53 – Certificate Required For Sales In Bulk

CTA - SEC. 53/Int.

Reference: Motor Fuel Tax Act Section 49.1

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaces section 53.

Section 53 of the Act provides the rules for sellers and purchasers when fuel is sold at a bulk transaction. "Bulk transaction" is a defined term for the purposes of the provision. Under these rules, the director may issue a clearance certificate to the seller. There is no direct obligation on either the seller or the purchaser to obtain a clearance certificate. However, if the purchaser does not obtain the certificate from the seller, the purchaser becomes liable for an amount equal to the outstanding tax owed by the seller.

The amendment makes the section consistent with similar provisions of other taxation Acts.

The purchaser is only responsible for liabilities related to the seller's fuel or business sold to the purchaser because subsection (2) refers to an amount equal to the total of all amounts owning under the CTA by the seller in respect of the "seller's business." "Seller's business" is defined in subsection (1) as the seller's business referred to in the definition of "bulk sale."

Effective July 1, 2008, Section 53 provides a standard provision found in consumption tax statutes regarding the requirement to get a clearance certificate from the ministry for sales in bulk.

Section 54 – Irregularities

CTA - SEC. 54/Int.

Reference: Motor Fuel Tax Act Section 47

Interpretation (Issued: 2011/11; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 54 consistent terminology for the purposes of clarifying that the general rules for giving documents apply by replacing “of the issuing of the notice of assessment” with “the notice of assessment is given”.

Effective July 1, 2008, Section 54 states that a court must not change or disallow an estimate, assessment or penalty because of an irregularity, informality, omission or error made in complying with the Act up to the date the notice of assessment is given.

Section 55 – Interest Until Notice of Assessment Is Given

CTA - SEC. 55/Int.

References:

Motor Fuel Tax Act: Section 45; Section 48

Interpretation (Issued: 2011/11; Revised: 2017/05; Revised: 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under subsection 55(1), (2) and (12) consistent terminology for the purposes of clarifying that the general rules for giving documents apply by replacing “issued” with “given”.

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended section 55 to expand the director's authority to assess interest only in circumstances where no assessment has been issued. Under the new subsection 55(3.1), the director can assess interest on a refund received that is in excess of the amount for which a person is eligible to receive. Under a new subsection 55(3.2), the director can assess interest on an amount a person deducts that is in excess of the amount for which they were eligible to deduct, even though the person may not be assessed for the excess amount as a result of new section 45(2.01).

Effective June 23, 2014, Bill 8 - Budget Measures Implementation Act, 2014, repealed and replaced section 55.

Section 55(1) provides a definition for "non-assessed amount" and "refund amount." Both these definitions are for the purposes of section 55.

Section 55(2) provides that the director may assess at any time, interest calculated at the prescribed rate and in the prescribed manner, on an amount owing until the date that a notice of assessment is given in relation to the amount owning.

Section 55(3) provides that in relation to security referred to in paragraph (b) of the definition of "non-assessed amount", the director may assess interest on the security as if that security were an amount owing from the date that the person was required to pay that security until 60 days after that date.

Section 55(4) provides the rules for when subsection (5) applies.

Section 55(5) provides that in relation to an assessment of interest for a particular period to which section 55(5) applies, interest may be assessed under subsection (2) in relation to a non-assessed amount for the particular period by assessing interest on the amount equal to the non-assessed amount for the particular period less the refund amount for the particular period.

Section 55(6) provides that if interest is assessed under subsection (2) for a particular period in accordance with section 55(5) no interest is payable for the particular period by the government in relation to the person's refund amount. This rule is despite the Financial Administration Act and the regulations under that Act.

Section 55(7) provides the rules for when subsection (8) applies.

Section 55(8) provides that in relation to a particular period to which section 55(8) applies, interest may not be assessed under subsection (2) in relation to the non-assessed amount for the particular period.

Section 55(9) provides that if interest may not be assessed under subsection (2) for a particular period in accordance with section 55(8), for the purposes of the regulations under section 27(1)(c) of the Financial Administration Act, the amount owing by the government for the particular period is deemed to be reduced by the non-assessed amount for that particular period.

Section 55(10) provides that for the purposes of section 55, the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing to the government.

Section 55(11) provides that for the purposes of section 55 and the regulations under section 27(1)(c) of the Financial Administration Act, the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing by the government.

Section 55(12) provides that for the purposes of section 55, a period of time ends and a new period may begin if the non-assessed amount or refund amount changes, or a notice of assessment is given in relation to all or part of a non-assessed amount.

Effective July 1, 2008, subsection 55(1) provides that interest is payable on amounts owing at the rate and in the manner determined by the regulations from either the date the amount was due or a later date set out in the regulations.

Subsection 55(2) provides that interest may be assessed at any time.

This is a standard provision in provincial tax statutes.

R.1 Application of 60 Days Interest (Issued: 2016/01)

Effective March 24, 2014, Bill 8: Budget Measures Implementation Act, 2014 eliminated the director's obligation to assess a person for the failure to pay security where the director is satisfied that the person to whom the fuel was sold would have been entitled to a refund of security if they had paid it (see subsection 45(1.2)). To ensure that government did not lose revenue in the form of interest earned on security it should have received prior to refunding the security to the person that purchased the fuel, effective June 23, 2014, the director was given the discretion under subsection 55(3) to impose 60 days interest on the security that would have been payable but was not assessed.

The reason that 60 days was chosen was that it was an approximation of the length of time that government would have had the security, paid by the collector before it was refunded to the person to whom the collector sold the fuel (assuming the security scheme worked as intended). While government may have held the security for greater than or less than 60 days, the authority to assess interest is for 60 days.

Given that the 60 days is based on an estimate of the time value of money lost and the fact that there are cases where a person could receive a refund well before government had the security for 60 days, a person that sold fuel will be given a warning in cases where it is the first time that a person has failed to pay security and the director is satisfied that the person to whom the fuel was sold would have been entitled to a refund of security if they had paid it. In addition, the person will be advised that if subsequent errors of this type are discovered, the Branch may assess 60 days interest on the amount of security that should have been paid.

Section 55.1 – Interest After Notice Of Assessment Is Given

CTA - SEC. 55.1/Int

Interpretation (Issued: 2014/07; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under subsection 51.1 consistent terminology for the purposes of clarifying that the general rules for giving documents apply by replacing “issued” with “given”.

Effective June 23, 2014, Bill 8 - Budget Measures Implementation Act, 2014, adds section 55.1.

Section 55.1 provides that the director may assess at any time interest, calculated at the prescribed rate and in the prescribed manner, on an amount owing to the government under this Act from the date that a notice of assessment is given in relation to the amount owing.

Section 56 – Appeal To Minister

CTA - SEC. 56/Int.

References: Regulation 41.8; Motor Fuel Tax Act Section 50

Interpretation (Issued: 2011/11; Revised 2012/03; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 56 consistent terminology for the purposes of clarifying that the general rules for giving documents apply.

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 amends section 56(1)(a).

The amendment adds the words "paid or remitted" after the word "tax." The amendment clarifies that an appeal lies from a decision of the director about a refund of tax paid or remitted.

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009, and B.C. Reg. 292/2009 added appeal provisions relating to refiner collectors. These amendments were consequential to the addition of refiner collectors as a new subcategory of collectors to the Act.

Effective July 1, 2008, under subsection 56(1), decisions by the director about any of the following actions may be appealed to the minister:

A refund of tax or security paid, including a denial of a refund;
A refusal to appoint a collector or refiner collector* or a refusal to issue a registered consumer certificate, registered air service or registered marine service certificate;
An estimate, assessment or a penalty;
A determination that a person carried out the functions of a board member for the purposes of director's liability provisions or that corporations are associated for the purposes of the lien provisions;
A refusal to exempt a collector, deputy collector or retail dealer from the obligation to pay security;

In addition, subsection 56(2) provides that if the director cancels a collector’s appointment or a certificate, the cancellation may be appealed to the minister unless the regulations do not permit an appeal. Note: the regulations to the Act currently have no such restrictions.

Additional appeal provisions are provided in regards to exempt fuel retailer permits by Regulation 41.8. See CTA/Reg. 41.8/Int.

An appeal must be made within 90 days of the date of the director’s notice of decision (subsection 56(3)). The notice of appeal must set out all material facts and reasons for the appeal (subsection 56(4)).

Subsection 56(5) sets out the powers and duties of the minister upon receiving an appeal, including that an appellant must be given prompt notice of the result of the appeal.

Subsection 56(6) provides that if an appeal relates to the refusal of the director to make an appointment or issue a certificate, the minister may either affirm the director’s decision, or direct the director to make the appointment or issue the certificate, subject to the conditions and limitations specified by the director.

Subsection 56(7) provides that if an appeal relates to the refusal of the director to exempt a collector, deputy collector, or retail dealer from the obligation to pay security, the minister may either affirm the director’s decision, or direct the director to grant the exemption, subject to the conditions specified by the director.

Section 56.1 – Notice of Appeal

CTA - SEC. 56.1/Int.

References:

Act: Section 56; Section 73.4

Bulletin GEN 002

Interpretation (Issued: 2022/10)

Effective October 1, 2022, the Carbon Tax Act, as amended by Bill 6, Budget Measures Implementation Act, 2022, provides under section 56.1 that a notice of appeal under section 56 [appeal to minister] is deemed to have been received by the minister when received at a location and by a method specified by the minister.

For the purposes of this section, the minister has specified that a notice of appeal received by the Tax Appeals and Litigation Branch by courier, fax or tracked mail is deemed to have been received by the minister.

Section 73.4 [when documents are given to minister], which states that documents for the minister are deemed to have been received if delivered to the office of the deputy minister, is repealed effective October 1, 2022. However, the previous rules will continue to apply for matters dated on or before September 30, 2022. If an appealable decision under section 56 is dated on or before September 30, 2022, a notice of appeal delivered to the office of the deputy minister will be deemed to have been received by the minister.

Section 57 – Appeal To Court

CTA - SEC. 57/Int.

References: Section 56; Motor Fuel Tax Act Section 51

Interpretation (Issued: 2011/11; Revised: 2023/10)

Effective June 17, 2021, Bill 4, Budget Measures Implementation Act, 2021, repeals subsection 57(7). This change allows parties to appeal a BC Supreme Court decision without first obtaining leave of a justice of the Court of Appeal. The amendment harmonizes appeal procedures with the Court of Appeal Act, which provides an automatic right of appeal of a lower court’s decision.

Effective July 1, 2008, under subsection 57(1), a decision of the minister on an appeal under subsection 56(1) may be appealed to the Supreme Court. The appeal must be filed in the court registry within 90 days after the date on the minister’s notification of decision.

Under subsection 57(5), an appeal to the Supreme Court is considered a new hearing and is not limited to the evidence and issues that were before the minister at the time of appeal.

Subsection 57(6) provides the power of the court to dismiss the appeal, allow the appeal, vary the minister’s decision or require the minister to reconsider the decision.

Under subsection 57(7), a decision of the court may be appealed to the Court of Appeal.

Section 58 – Pending Appeal Not To Affect Tax Collection

CTA - SEC. 58/Int.

References: Section 56; Motor Fuel Tax Act Section 52

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 58. A new subsection (3) was added. The amendment requires an appellant to pay the additional amount owing, and interest on that amount, if the amount of an estimate or assessment or an amount imposed is increased on appeal.

Previously, the government was required to refund an amount when decreased under appeal but there was no requirement for an appellant to pay government when the amount under the appeal was increased.

Effective July 1, 2008, Section 58 provides that the decision to file an appeal, or any delay in the hearing of an appeal, whether to the minister or to the court, does not affect the date when amounts owed must be paid (including interest and penalties), or the amount of any debt, including the amount under appeal. Additionally, any collection action is not delayed due to an appeal.

Subsection 58(2) entitles a person to a refund equal to any excess amount paid, including interest or penalties, if a person’s appeal is successful, or if an amount imposed is reduced on appeal.

Section 59 – Collection Bond

CTA - SEC. 59/Int.

Reference:

Motor Fuel Tax Act Section 53

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 59(5) to clarify that a bond may be applied to other amounts that are not tax or security that are required to be remitted to government, such as amounts collected as if they were tax and amounts received as if they were security.

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaces section 59. The section allows the director to require a vendor who has applied to be appointed as a collector or a person who has applied for a specified certificate (e.g., a retail dealer of natural gas who has applies for a certificate under section 19) to provide a bond.

While the section allows the director to vary the bond amount, the bond must not be more than the "maximum bond amount" which is set out in (1).

The section also allows the director to return a bond, or pay an amount equal to the amount remaining on a bond, to the person who deposited the bond.

The new provision expands the abilities of the director to fairly and efficiently administer bonding requirements. For example, previously the director did not have legislative authority to return a bond when the provider ceased operations.

The director can reduce the burden on the business to offset a risk that no longer exists when the volume of fuel expected to be sold decreases or the director can protect the government from risk if the volume increases.

Effective July 1, 2010, Budget Measures Implementation Act, 2010 amended subsections 59(1) and 59(3) to remove the reference to propane as propane is now subject to the payment of security under the Act. See Notice 2010-004 – Notice to Propane Sellers – Carbon Tax for more information.

Effective January 1, 2010, Budget Measures Implementation Act (No. 2), 2009 amended subsections 59(1) and 59(3) to remove the word “marketable” as the distinction between raw and marketable natural gas was eliminated. Effective January 1, 2010, all natural gas is treated the same regardless of where it is used or sold, and is exempt from the security scheme.

Effective July 1, 2008, subsection 59(1) determines who may be required to provide a collection bond. Every person listed in Section 59 is a person who paid an amount of tax or security directly to the government: collector, a holder of a motive fuel user permit, a retail dealer of natural gas (marketable natural gas prior to January 1, 2010), a registered consumer, registered air service or registered marine service. Prior to July 1, 2010, subsection 59(1) also referenced a retail dealer of propane.

Section 60 – Court Action To Recover Amount Owing

CTA - SEC. 60/Int.

Reference: Motor Fuel Tax Act Section 54

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 60 provides that the government may sue a person in court for an amount owing. This is a standard provision in consumption tax statutes.

Section 61 – Summary Proceedings Without Action

CTA - SEC. 61/Int.

Reference: Motor Fuel Tax Act Section 55

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaced subsection 61(3). The new subsection (3) clarifies that all proceedings may be taken on a certificate issued and filed by the director as if it were a judgment of the court.

The amendment adds a new subsection (4) that provides that the director may issue and file a new certificate if the amount specified in the certificate that has been issued and filed is different from the actual amount owing.

Effective July 1, 2008, Section 61 provides a standard collection provision in provincial tax statutes. Subsection 61(1) provides that the director may issue a certificate for an amount owed under the Act if a person fails to pay or remit an amount owing under the Act.

Subsection 61(2) provides that the certificate issued by the director may be filed with the British Columbia Supreme Court.

Subsection 61(3) deems a filed certificate to have the same effect as a court judgment and may be enforced as if it were a court judgment.

Section 62 – Alternate Remedies

CTA - SEC. 62/Int.

Reference: Motor Fuel Tax Act Section 56

Interpretation (Issued: 2011/11)

Effective July 1, 2008, subsection 62(1) provides that any or all collection tools to recover amounts owing may be exercised separately, concurrently or cumulatively.

Subsection 62(2) provides that the imposition of a fine or penalty for an offence does not mean the person does not have to pay the amount owed which resulted in the fine or penalty.

Section 63 – Attachment Of Funds

CTA - SEC. 63/Int.

Reference: Motor Fuel Tax Act Section 57

Interpretation (Issued: 2011/11; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 63 consistent terminology for the purposes of clarifying that the general rules for giving documents apply regarding the giving of a demand by the director.

Effective July 1, 2008, Section 63 provides a standard provision in the provincial tax statutes.

Subsection 63(1) defines “taxpayer” for the purpose of this section to mean any person who is liable to pay or remit an amount under the Act.

Subsection 63(2) sets out that the director may demand that a person pay all or part of the money that would have been payable to a taxpayer to the government instead for the purpose of paying the taxpayer’s debt.

Subsection 63(3) provides that the director may demand that a person pay money to the government that the person was going to advance to a taxpayer, pay on behalf of a taxpayer, or to pay in respect of a negotiable instrument issued by a taxpayer for the purpose of paying a debt to government.

Subsection 63(4) [Repealed 2019-36-30.]

Subsection 63(5) provides that if the money payable to a taxpayer is interest, rent, remuneration, a dividend, annuity, or other period payment, the demand remains in force until the taxpayer’s debt is satisfied, and the person only has to pay to the government the amount from each periodic payment specified in the demand. For example, if the demand relates to wages, each payment could be a specific percentage of each pay cheque until the debt is paid.

Subsection 63(6) confirms that money in a taxpayer’s bank account is money payable by the bank to the taxpayer within the meaning of this section, whether the money in the account was deposited before or after the demand is given to the bank. This does not include money in a bank account if the taxpayer is acting as a trustee with respect to that money because that money is held on behalf of someone else.

Subsection 63(7) provides that the demand continues in effect until the debt is either paid or 90 days after it is given.

Subsection 63(8) sets out that a demand related to periodic payments ceases to have effect after 90 days if within the first 90 days after it is given, there is no period payment made or liable to be made; otherwise the demand continues until the debt is paid.

Subsection 63(9) provides that money under a demand is payable to the government as soon as the demand is given to an indebted taxpayer or as soon as the person is required to make a payment to a taxpayer.

Subsection 63(10) sets out that if a person does not comply with a demand, they become personally liable to pay the amount they were required under the demand to forward to the government.

Subsection 63(11) sets out that, in the case of money to be advanced to a taxpayer, the person who did not comply with the demand must pay either the amount of the demand or the amount which they advanced to the taxpayer, whichever is less.

Subsection 63(12) deems paying money to government under a demand discharges the person’s liability to the taxpayer, to the extent of the payment.

Subsection 63(13) deems money paid under a demand to have been paid by the person who complied with the demand to the taxpayer.

Section 64 – Lien

CTA - SEC. 64/Int.

References:

Act: Section 71; Motor Fuel Tax Act Section 57.1

Interpretation (Issued: 2011/11; Revised: 2016/01; 2017/05; 2023/08; 2023/10)

Effective May 11, 2023, Bill 10, Budget Measures Implementation Act, 2023, moved the clarification that lien disclosure requirements under subsection 64(9) are permitted, despite the Act’s confidentiality protections, from subsection 64(9) to sections 71(3) and 71(6)(g). The director must continue to disclose lien information as required under section 64(9).

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under subsection 64(13) consistent terminology for the purposes of clarifying that the general rules for giving documents apply. For example by replacing "sent" and "served on" with "given" and "given to".

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended section 64 by modifying the definition of "associated corporation" to make reference to associated corporations within the meaning of section 256 of the Income Tax Act (Canada). This change will help determine whether two corporations are associated in a situation where the director has not gone through the process of requesting documentation under subsection 64(11).

Subsection 64(4) is amended to allow the director to impose a lien as a result of amounts owing to government, other than taxes and security, that are not remitted as required under the Act, such as amounts collected as if they were tax and amounts received as if they were security. Subsection 64(11) is also amended to provide consistency with similar provisions of other taxation Acts.

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 made several amendments to section 64. The amendment adds a definition for "amount owing" to clarify that the lien established under the section applies to all amounts owing under the Act, including amounts owing for interest on penalties.

The amendment also allows the director to revise the amount of the lien by adding a new subsection (8.1). As a result of the director can revise the amount owing so that the correct amount is collected.

Effective December 6, 2010, under the authority of section 12 of the Statute Revision Act, B.C. Reg. 357/2010 corrected paragraph 64(7)(c) of the Carbon Tax Act by adding a comma after “subsection (2)(b)”.

Effective July 1, 2010, Bill 11, Miscellaneous Statutes Amendment Act, 2010 updated the reference to the Supreme Court Civil Rules under subparagraph 64(14)(b)(ii) of the Carbon Tax Act.

Effective July 3, 2010, Bill 20, Miscellaneous Statutes Amendment Act (No. 3), 2010 amended subsection 64(9) to reference subsection 71(1), and not the entire Section 71. This amendment was consequential to the addition of subsection 71(2) to the Act. See CTA/SEC. 71/Int.

Effective July 1, 2008, Section 64 provides the following lien provisions for the purposes of the Act.

There are 2 classes of liens:

Taxes not collected or remitted and security not paid.
Taxes not paid.

This distinction is made because taxes not collected or remitted, and security not paid, are considered to be “funds held in trust” on behalf of the government.

Under subsection 64 (5),the first class of liens have a six-month super priority over most other security interests or liens, except specific types of security interests. The priority of the second class of liens is determined by the date of registration of the lien.

Section 65 – Responsibility Of Person Having Control Of Property

CTA - SEC. 65/Int.

Reference:

Motor Fuel Tax Act: Section 57.2

Interpretation (Issued: 2011/11; Revised: 2017/05)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subsection 65(2) to clarify that section 65 applies to a person who, as assignee, liquidator, administrator or similar person, takes control or possession of the property of a person who is required to remit an amount other than tax or security, such as amounts collected as if they were tax and amounts received as if they were security.

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaced section 65. The section establishes a special rule for persons who take control of the property (such as liquidators, receiver managers or trustees) of someone who has collected tax, someone who has collected an amount as if it were tax, someone who is required to collect or remit tax, or someone who is required to pay security. Under subsection 65(2), before distributing the proceeds from the realization of the property, the person must obtain a certificate from the director. Where the person does not obtain a certificate the person is personally liable for an amount equal to the amount required to be obtained under the certificate.

These rules do not apply to a trustee appointed under the Bankruptcy and Insolvency Act (Canada).

Section 66 – Notice Of Enforcement Proceedings

CTA - SEC. 66/Int.

Reference: Motor Fuel Tax Act Section 58

Interpretation (Issued: 2011/11)

Effective July 1, 2008, subsection 66(1) requires the director to provide notice before taking collection action to enforce payment.

Subsection 66(2) provides that the failure to provide notice does not affect the validity of any of the collection actions taken to enforce payment.

These are standard provisions in provincial tax statutes.

Section 67 – Limitation Period

CTA - SEC. 67/Int.

Reference: Motor Fuel Tax Act Section 59

Interpretation (Issued: 2011/11; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 repealed and replaced section 67. Section 67 sets out the limitation period for collection proceedings. The amendment is consequential to the enactment of the new Limitation Act. Providing the Carbon Tax Act its own limitation period rules ensures the Limitation Act does not impact collection proceedings by government.

Section 68 – Application For Injunction

CTA - SEC. 68/Int.

Reference: Motor Fuel Tax Act Section 60

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 68 permits the director to seek an injunction to prohibit a person from selling fuel until they comply with their obligations under the Act and regulations. This section is a standard provision in the consumption tax statutes.

Section 69 – Appointment Of Director

CTA - SEC. 69/Int.

References: Section 1 “director”; Motor Fuel Tax Act Section 60.1

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 69 authorizes the minister to appoint a person as the director for the purpose of administering the Act.

Section 70 – Delegation

CTA - SEC. 70/Int.

References: Section 1 “director”, “IFTA commercial vehicle”, “motive fuel user permit”; Motor Fuel Tax Act Section 61

Interpretation (Issued: 2011/11)

Retroactive to July 1, 2009, Bill 2, Budget Measures Implementation Act (No. 2), 2009 amended subsection 70(3) by removing “, functions” from the phrase “the director’s powers, functions and duties”.

Effective July 1, 2008, subsection 70(1) authorizes the director to delegate his or her powers, functions, or duties.

Subsection 70(2) provides that the delegation may be to a specific person or a class of persons.

Subsection 70(3) provided that the director may delegate their powers, functions or duties related to IFTA commercial vehicles to a government corporation or another ministry. The purpose of this provision is to delegate duties related to motor fuel user permits and the collect of deposits to the Ministry of Transportation, consistent with current practices under the Motor Fuel Tax Act.

Section 71 – Information Sharing

CTA - SEC. 71/Int.

Reference:

Act: Section 1 “collector”, “fuel”, “registered air service certificate”, “registered consumer”, “registered consumer certificate”, “registered marine service certificate”; Section 64; Section 71 “authorized person”, “confidential information”, “excluded information”, “official”, “police officer”, “US state official”; Section 71.1 “information-sharing agreement”

CTR: Section 41.1 “exempt fuel retailer permit”, “specified fuel”; Section 41.3; Section 45.2

Interpretation (Issued: 2011/11; Revised 2023/10)

Effective May 11, 2023, Bill 10, Budget Measures Implementation Act, 2023, repealed and replaced section 71 as part of standardizing confidentiality provisions across tax and revenue statutes.

The new section 71 outlines how confidential information is used and disclosed. Confidential information:

Relates to one or more persons and would directly or indirectly reveal their identity, and
Is obtained by or on behalf of the minister for the purposes of this Act, or is prepared from such information

Section 71 also defines excluded information that is not considered confidential information:

The name and address of a collector, and whether their appointment has been suspended or cancelled
The name and address of a person who holds or has held an exempt fuel retailer permit; whether their permit has been suspended or cancelled; the specified fuel in the permit; and the percentage of each fuel that they may purchase exempt
The name and address of a person who is or has been a registered consumer; whether their certificate has been suspended or cancelled; and the specified fuel in their certificate
The name and address of a person who holds or has held a registered marine service certificate or a registered air service certificate; whether their certificate has been suspended or cancelled; and the specified fuel in their certificate

For the purposes of excluded information, “name” includes “doing business as” names.

Many of the confidentiality provisions refer to officials. Officials are persons employed or engaged by the government, the government of another province, or Canada, or persons who occupy a position of responsibility in the service of those governments. It also includes persons who were formerly so employed, engaged, or occupied, as they may still hold confidential information.

US state officials are similarly defined as individuals employed or engaged by the government of a U.S. state, or who occupy a position of responsibility in the service of a U.S. state government, or who were formerly so employed, engaged, or occupied.

Subsection 71(3) establishes that, except as authorized by this section, or section 64(9) in relation to liens, officials must not knowingly: provide confidential information; allow it to be provided; allow access to confidential information; or use it other than for the administration and enforcement of the Act or for a purpose for which it was provided under this section.

Subsection 71(4) provides a general prohibition against requiring officials during legal proceedings to disclose confidential information collected under the Act. However, subsection 71(5) further clarifies that subsections 71(3) and 71(4) do not apply to legal proceedings related to the administration or enforcement of provincial tax and revenue statutes, or to criminal proceedings commenced under a federal act.

Subsection 71(6) includes the main list of authorities for disclosing and using confidential information. Officials may:

Under subsection 71(6)(a), provide to any person confidential information to administer or enforce the Act
Under subsection 71(6)(b), provide to any person confidential information necessary to determine:
1. Any tax, security, interest, penalties, or other amounts payable or that may become payable by the person under the Act
2. Any exemptions, deductions, refunds or credits which the person is or may become entitled under the Act, or
3. Any other amounts relevant to make those determinations
Under subsection 71(6)(c), provide confidential information:
- To an official of the Ministry of Finance or an official of the federal Department of Finance to formulate or evaluate fiscal policy
- To an official for the initial implementation of a fiscal policy
- To an official to administer or enforce a B.C. statute that provides for the imposition or collection of a tax or duty, or to administer or enforce Part 10 of the Petroleum and Natural Gas Act and regulations under that Part
- To an official to administer or enforce a federal statute or the statute of another province that provides for the imposition or collection of a tax or duty
- To an official for the government or the federal government to compile statistical information
- To an official to set off debts dur or payable by the government
Under subsection 71(6)(d), provide confidential information to U.S. state officials to administer or enforce state-level taxes or duties
Under subsection 71(6)(e), provide confidential information when required by the Office of the Information and Privacy Commissioner or the Auditor General of British Columbia
Under subsection 71(6)(f), provide confidential information when in receipt of an order under the Family Law Act or the Family Maintenance Enforcement Act, for the purpose of child support and family maintenance
Under subsection 71(6)(g), provide confidential information relating to a person to the person and, with their consent, to any other person. Some lien information is bound by a separate disclosure provision under section 64(9)
Under subsection 71(6)(h), aggregate confidential information so it is no longer identifiable
Under subsection 71(6)(i), provide confitential information for the purpose of sections 17 [write off of assets and uncollectable debts], 18 [extinguishment of debts] and 19 [remissions] of the Financial Administration Act
Under subsection 71(6)(j), use or provide confidential information for the supervision, evaluation or discipline by the government:
1. Of an authorized person, defined as someone who is or was engaged or employed by or on behalf of the government to assist with this Act, and
2. Related to a period during which that person was so engaged or employed
Under subsection 71(6)(k), provide confidential information to a police officer for investigations into whether an offence has been committed under the Criminal Code, or for the laying of an information or the preferring of an indictment, if:
1. It is needed to determine, with respect to an official or anyone related to the official, the circumstances in which the offence may have been committed, or the identity of the person who may have committed the offence, and
2. The official was administering or enforcing this Act and the offence is related to that administration and enforcement
Under subsection 71(6)(l), provide to any person confidential information to which they are legally entitled under a prescribed B.C. statute solely for the purposes for which they are entitled to it under that statute. See Section 45.2, Carbon Tax Regulation, for a list of prescribed statutes.

Subsection 71(7) requires an information-sharing agreement under Section 71.1 for officials to provide confidential information under subsections 71(6)(a) to (d) and (i) to (l) to:

An official of a public body, as defined in the Freedom of Information and Protection of Privacy Act, other than the Ministry of Finance (i.e. information-sharing agreements are required with officials in other ministries)
An official of the government of Canada or the government of another province
A US state official

Subsection 71(8) allows officials to disclose confidential information in circumstantial information in circumstances of imminent danger.

Subsection 71(9) states that the person presiding at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may make orders to protect confidential information. Orders may include:

That the proceedings be held in private
Banning the publication of confidential information
Concealing the identity of the person to whom the information relates
Sealing the records of the proceeding

Subsection 71(10) states that in the event of any inconsistency or conflict with sections 32 and 33 of the Freedom of Information and Protection of Privacy Act, which concern the use and disclosure of “personal information” as defined in that Act, the use and disclosure provisions in this section apply.

Effective June 17, 2021, Bill 4, Budget Measures Implementation Act, 2021, added paragraph 71(1)(c.1), which establishes that information collected under the Act can be disclosed to an official or employee of the Ministry of Finance to formulate or evaluate fiscal policy.

Effective July 3, 2010, Bill 20, Miscellaneous Statutes Amendment Act (No. 3), 2010 added subsection 71(2), which establishes that the prohibition under Section 71 (consequentially renumbered as subsection 71(1)) does not apply in respect of the names and addresses of collectors.

Effective July 1, 2008, Section 71 established that information collected under the Act must not be disclosed except:

To administer or enforce this or another taxation Act,
In court proceedings relating to this or another taxation Act,
In accordance with provisions of the Family Relations Act or Family Maintenance Enforcement Act related to family support payments,
Under an agreement with another government related to the administration or enforcement of tax enactments which provides for the disclosure or exchange of information, or
For the purpose of compiling statistical information by the government or the federal government.

This confidentiality provision is consistent with the confidentiality provisions in other provincial consumption statutes.

Section 71.1 – Information Sharing Agreements

CTA - Sec. 71.1/Int.

References:

Act: Section 71 “confidential information”, “official”, “US state official”; Section 71.1 “confidential information”, “information-sharing agreement”

Interpretation (Issued: 2023/10)

Information-sharing agreements are agreements or arrangements (e.g. a memorandum of understanding) to share information for a purpose described in section 71(6). There are specific types of information sharing with officials and US state officials that require the government to enter into information-sharing agreements, as noted in section 71(7). The minister may also choose to enter into an information-sharing agreement when they are not required to do so.

Subsection 71.1(2) establishes that the minister may enter into information-sharing agreements with public bodies, as defined in the Freedom of Information and Protection of Privacy Act, or with the governments or government agencies of: Canada; provinces or other jurisdictions in Canada; or U.S. states.

Subsection 71.1(3) states that confidential information obtained by the minister under an information-sharing agreement may only be used or disclosed for the purposes for which it was obtained under the agreement, with two exceptions under subsection 71.1(4):

If the confidential information is obtained under an information-sharing agreement with the government of Canada or an agency of that government, it may also be used to administer and enforce the minister’s tax and revenue statutes, as well as Part 10 of the Petroleum and Natural Gas Act and regulations under that Part
Confidential information obtained under an information-sharing agreement may also be used or disclosed to administer and enforce a federal statute that provides for the imposition or collection of a tax or duty

Subsection 71.1(5) permits the Lieutenant Governor in Council to prescribe terms and conditions for information-sharing agreements.

Per subsection 71.1(6), information-sharing agreements entered before this section came into force that were not signed by the minister (e.g. agreements signed by a deputy minister) are considered to have been entered into by the minister.

Section 72 – Demand For Information

CTA - SEC. 72/Int.

Reference: Motor Fuel Tax Act Section 63.1

Interpretation (Issued: 2011/11; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 72 specific rules for giving a demand for information and provides consistent terminology for the purposes of clarifying that the general rules for giving documents apply. Subsection 72(2)(a) is repealed and replaced with a new subsection for the same purpose setting out how a demand of information must be given to a person.

Effective July 1, 2008, Section 72 provides a standard provision found in provincial tax statutes relating to demands for information.

Subsection 72(1) provides that the director may require any person to provide a return, information or additional information, records, or a written statement.

Subsection 72(2) sets out how a demand for information must be given to a person and that the director may require a written statement to be an affidavit or statutory declaration.

Subsection 72(3) provides that a person must comply with a demand for information notice within the time specified in the notice.

Subsection 72(4) provides that an affidavit by the director is proof, unless there is evidence to the contrary, of the director’s compliance with this section or proof that a person has failed to comply with a demand for information.

Section 73 – How And When Documents Are Given By Director

CTA - SEC. 73/Int.

Reference: Motor Fuel Tax Act Section 63

Interpretation (Issued: 2011/11; Revised 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, amends section 73 by repealing the Service of Notices provision and substituting rules for the giving of documents by the director. More specifically, the amendment sets out how documents are given to individuals, corporations, extraprovincial corporations and partnerships. This amendment includes an option to give a document using ordinary mail, which is the method used most often by the ministry to provide documents, and also an option for another communication method agreed to by the person and the director. Further, this amendment allows a document to be given if left with a person employed at the place of business. The amendment also provides that documents that are sent by registered mail, email, fax, or provided by another communication method agreed to by the director and the person, will be conclusively deemed to have been given on the date they are sent or provided, and that if a document is sent by ordinary mail, it will be deemed to have been given by the director on the date it was sent. A new provision is also added intended to clarify that the date of a notice or document given by a director is the date stated on the notice or document.

Effective July 1, 2008, Section 73 specifies when a notice or other document is deemed to have been served on a person. Subsection 73(1) sets out that a notice or document which the director is required or authorized to serve is conclusively deemed to be served if served on the person, or if sent by registered mail, email, or fax to the last known address or fax number of the person.

Section 73.1 – Proof Of Compliance

CTA - SEC. 73.1/Int.

References: Motor Fuel Tax Act Section 73

Interpretation (Issued: 2023/08)

Effective October 31, 2019, Bill 35 Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 73.1 and establishes the rules around the proof of compliance. A similar provision had been in section 73(8) prior to the reorganization of that section under the same bill.

Section 73.2 – Proof Of Receipt

CTA - SEC. 73.2/Int.

References: Motor Fuel Tax Act Section 73

Interpretation (Issued: 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 73.2 and establishes the rules around the proof of receipt of documents given by the director in accordance with section 73(3). A similar provision had been in section 73(7) prior to the reorganization of that section under the same bill.

Section 73.3 – How And When Documents Are Given By Minister

CTA - SEC. 73.3/Int.

References: Motor Fuel Tax Act Section 73

Interpretation (Issued: 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 73.3 and establishes the rules around how documents are given by the minister to a person. The rule references the general rule for how the director must give documents under section 73(2) and allows the minister to provide documents in the same way.

Section 73.3 provides that if, under this Act, a document must or may be given by the minister to a person, the document may be given in accordance with section 73(2).

Section 73.4 – [Repealed 2022-11-13.]

CTA - SEC. 73.4/Int.

References: Motor Fuel Tax Act Section 73

Interpretation (Issued: 2023/08)

Effective October 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, repeals section 73.4.

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 73.4 and establishes the rules regarding when a document is conclusively given to the minister.

Section 74 – Conversion Of Measurement

CTA - SEC. 74/Int.

Reference: Motor Fuel Tax Act Section 63.2

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 74 permits the director to establish formulas for converting a measure of an amount of fuel or combustible into a different measure.

For example, the tax rate for propane is in litres but propane is also commonly sold in pounds and cubic metres. The director’s formulas determine how a seller of propane should calculate the tax payable when they sell in units other than litres.

Section 75 – Offences

CTA - SEC. 75/Int.

References: Section 71; "confidential information"; Section 75.1; Motor Fuel Tax Act Section 64

Interpretation (Issued: 2011/11; Revised: 2016/01; 2023/10)

Effective May 11, 2023, Bill 10, Budget Measures Implementation Act, 2023, repealed the confidentiality offence provision in subsection 75(1) of the Act and replaced it with the standalone section 75.1, offences in relation to confidential information.

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 added subsection 75(5). The new subsection confirms that the offence penalties are in addition to any other penalty under the Act.

Effective July 3, 2010, Bill 20, Miscellaneous Statutes Amendment Act (No. 3), 2010 clarified subsection 75(1) to ensure it only applied to breaches of subsection 71(1), and not the entire Section 71. This amendment was consequential to the addition of subsection 71(2) to the Act. See CTA/SEC. 71/Int.

Effective July 1, 2008, subsection 75(1) established that a person who breached the confidentiality provisions in Section 71 committed an offence, and may have been liable to pay a fine up to $2,000.

Subsection 75(2) lists all of the behaviours which constitute an offence under the Act. The offences under the Act are consistent with the offences under the other consumption tax statutes.

Subsection 75(3) imposes the following penalties for committing an offence listed under subsection 75(2):

A fine up to $10,000, imprisonment for up to 2 years or both, plus
A fine equal to the tax or security not collected, remitted or paid as required.

Subsection 75(4) provides that, during a prosecution of an offence under subsection 75(2), a director’s certificate stating the amount of tax or security not collected, paid or remitted is evidence of the amount of tax or security not collected, paid or remitted.

Section 75.1 - Offences In Relation To Confidential Information

CTA - Sec.75.1/Int.

References:

Act: Section 64; Section 71 “authorized person”, “confidential information”, “official”

Interpretation (Issued: 2023/10)

Effective May 11, 2023, the Budget Measures Implementation Act, 2023 amended the Act as part of standardizing confidentiality provisions across tax and revenue statutes, including adding specific offences related to confidential information. Paragraph 75.1(1)(a) establishes that if a person contravenes section 71(3) it is an offence. Section 71(3) sets out that officials must not knowingly make certain disclosures or use information in certain ways, except as authorized by section 71, or, in relation to liens, section 64(9).

Paragraph 75.1(1)(b) establishes that if a person contravenes section 71(9) it is an offence. Section 71(9) establishes that a person must not violate an order related to the confidentiality of information at a legal proceeding concerning the supervision, evaluation or discipline of an authorized person.

Subsection 75.1(2) establishes that it is an offence if a person has been provided with confidential information for one of the following purposes: 71(6)(a) to (c), (e), (f), (i), (j) or (l), and then, for a purpose other than that for which it was provided:

Uses the information
Provides the information to any person
Allows the information to be provided to any person, or
Allows any person to access the information

Under subsection 75.1(3), the penalty for committing an offence under subsection 75.1(1) or 75.1(2) is a fine of up to $5,000, imprisonment for up to 12 months, or both.

Section 76 – Onus Of Proof

CTA - SEC. 76/Int.

Reference: Motor Fuel Tax Act Section 65

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 76 provides that the burden of proof is on the accused in a prosecution for failure to collect, pay or remit an amount under the Act. This section is a standard provision in provincial tax statutes.

Section 77 – Analyst And Certificate Of Analyst

CTA - SEC. 77/Int.

Reference: Motor Fuel Tax Act Section 66

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 77 provides that in a prosecution of an offence, an analyst may be designated by the director to provide evidence (such as verification of a type or mixture of fuel) about a substance submitted for analysis. The analyst’s evidence is by way of an analyst certificate in which they state that they have analyzed or examined a substance submitted to the analyst and the results of the analysis.

With leave of the court, the analyst may be cross examined on their evidence. The government cannot use an analyst’s certificate as evidence unless reasonable notice of the intention to use the certificate as evidence is provided to the other party along with a copy of the certificate.

Section 78 – Evidence

CTA - SEC. 78/Int.

Reference: Motor Fuel Tax Act Section 67

Interpretation (Issued: 2011/11)

Effective July 1, 2008, subsection 78(1) confirms that in a prosecution of an offence, evidence that a person applied to be appointed a collector or applied for a certificate issued under the Act is proof that the person is appointed a collector or holds the certificate for which they applied.

Subsection 78(1) confirms that in a prosecution of an offence, a notice of assessment is proof that the amount stated on the notice of assessment is due and owing to the government.

Section 79 – Offence By Corporation

CTA - SEC. 79/Int.

Reference: Motor Fuel Tax Act Section 68

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 79 provides that if an employee, officer, board member or agent of a corporation authorized, permitted or acquiesced in a corporation’s offence, they also commit that offence and may be prosecuted for their offence whether or not the corporation is prosecuted or convicted.

This section is a standard provision in provincial statutes.

Section 80 – Time Limit On Prosecution

CTA - SEC. 80/Int.

Reference: Motor Fuel Tax Act Section 69

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 80 provides that a prosecution for an offence must be started no later than six years after the day the alleged offence was committed.

Section 81 – Section 5 Of The Offence Act

CTA - SEC. 81/Int.

Reference: Motor Fuel Tax Act Section 70

Interpretation (Issued: 2011/11)

Section 5 of the Offence Act is a general offence provision which provides that any contravention of a statute or regulation is an offence under the Offence Act.

Effective July 1, 2008, Section 81 provides that section 5 of the Offence Act does not apply to the Carbon Tax Act. As a result, only contraventions of the Carbon Tax Act or its regulations that are identified as offences may be prosecuted as offences.

Section 82 – Definition

CTA - SEC. 82/Int.

Interpretation (Issued: 2011/11)

Effective July 1, 2008, Section 82 clarifies that the definition of greenhouse gas, for the purposes of Part 12 of the Act, has the same meaning as in the Greenhouse Gas Reduction Targets Act.

Section 83 – Modification Of Schedules By Regulation

CTA - SEC. 83/Int.

References: Schedule 1; Schedule 2

Interpretation (Issued: 2011/11)

Schedule 1 and Schedule 2 of the Act have tables listing fuels and combustibles that are taxable under the Act. The tables specify the applicable tax rates for each fuel and combustible from July 1, 2008 to July 1, 2012.

Effective July 1, 2011, Section 83 was repealed by subsection 83(6).

Effective July 1, 2008, Section 83 gave the Lieutenant Governor in Council the following temporary regulation making powers relating to Schedule 1 and Schedule 2 of the Act:

Subsection 83(1) provided the power to amend Schedule 1 and Schedule 2 by regulation on or before July 1, 2011.
Subsection 83(2) provided further clarification on what could have been added, modified or deleted by regulation. Before July 1, 2011, the Lieutenant Governor in Council had the power to amend Schedule 1 and Schedule 2 as follows:
- add a substance as a fuel or combustible;
- modify or delete a fuel or combustible;
- add, modify, or delete a tax rate for a fuel or combustible; or
- add, modify, or delete a definition of a fuel or combustible
Subsection 83(3) clarified that only substances or items which may be burned to produce energy or heat and which produce greenhouse gas when burned could have been added to the schedules by the regulation making powers in Section 83.
Subsection 83(4) gave the Lieutenant Governor in Council the power to make transitional regulations to address any difficulties or problems arising from amendments to the schedules by regulation.
Subsection 83(5) provided that regulations which did not increase the tax rate could be retroactive to July 1, 2008. Regulations that increased the tax rate could only by effective from the date the regulation was made.
Subsection 83(6) provided that regulations made under this section were repealed on July 1, 2011. Therefore, any amendments that were not confirmed by the Legislative Assembly in legislation would have expired.

The regulation making powers in Section 83 were not used after the carbon tax came into effect on July 1, 2008. However, Section 83 was used to create B.C. Reg. 123/2008 and B.C. Reg. 124/2008 to amend the tax rates for items 1 to 6, 12, 13, 16 and 17 of the Table in Schedule 1, effective the day the carbon tax came into effect on July 1, 2008. See CTA/SCHEDULE 1/Int.

Section 84 – Regulations

CTA - SEC. 84/Int.

References: Section 1 ”collector”, ”combustible”, ”deputy collector”, ”fuel”, ”IFTA commercial vehicle”, ”motive fuel user permit”, ”refiner collector”, ”registered air service”, ”registered air service certificate”, ” registered consumer”, ”registered consumer certificate”, ”registered marine service”, ”registered marine service certificate”, ”registration certificate”, ”retail dealer”, ”security” , ”use”, ”vendor”, ”wholesale dealer”; Section 8.1; Section 13; Section 14(2)(g); Section 21; Section 35; Section 39; Section 39.1; Section 53; Section 56; Section 65; Schedule 1; Schedule 2; Carbon Tax Act Regulation

Interpretation (Issued: 2011/11; Revised 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended subsection (3) by adding a new paragraph (r.1). The new paragraph authorizes the Lieutenant Governor in Council to make regulations authorizing the director to suspend or cancel a motive fuel user permit held by a person who refuses or neglects to provide a bond under section 59.

Effective January 1, 2014, Bill 2 - Budget Measures Implementation Act, 2013 added subsection (6.5). The new subsection authorizes regulations made before July 1, 2014 in relation to sections 8.1, 14(2)(g) or 39.1 to be made retroactive to January 1, 2014.

Effective May 1, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, amends section 84 for the purposes of the new section 1.1

Effective February 16, 2011, Bill 2: Budget Measures Implementation Act, 2011 added the following regulation making powers to section 84:

Subsection 84(3)(o.1) authorizes the Lieutenant Governor in Council to make regulations regarding biomethane credits including:

Limiting the retail dealers or classes of retail dealer to whom section 14.1 applies;
Limiting the purchasers or classes of purchaser to whom section 14.1 applies;
Establishing circumstances in which biomethane credits must or must not be provided;
Setting conditions or limitations on the provision of biomethane credits; and
Respecting the duties of retail dealers who are required to provide biomethane credits.
Subsection 84(3)(o.2) authorizes the Lieutenant Governor in Council to make regulations in relation to biomethane refunds including:
- Establishing circumstances in which refunds must or must not be paid;
- Setting conditions or limitations on the payment of refunds; and
- Respecting the repayment of refunds to the government by retail dealers of natural gas.

Subsection 84(6.3) allows for regulations related to the biomethane credit to be made retroactive to February 16, 2011.

Effective September 2, 2009, Bill 2, Budget Measures Implementation Act (No. 2), 2009 added the following regulation making powers to Section 84:

Subsection 84(6.1) provides that a regulation made before December 31, 2009 under Section 21, Section 39 or subsection 84(3)(g), 84(3)(j), 84(3)(k), 84(3)(l) or 84(3)(m) may be made retroactive to July 1, 2008 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Subsection 84(6.2) provides that a regulation made before December 31, 2009 under subsection 84(3)(i)(iv) of this section may be made retroactive to September 2, 2009 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Bill 2 also amended subsection 84(3)(i)(iv) to provide the Lieutenant Governor in Council with the authority to prescribe regulations to provide for appeals from a decision related to a permit. The previous power under subsection 84(3)(i)(iv) was more narrow; it only applied to prescribing regulations to provide for appeals from a decision respecting the issue or cancellation of a permit. This amendment was effective September 2, 2009.

Effective July 1, 2008, Bill 37, Carbon Tax Act added Section 84 to provide the following regulation making powers to the Lieutenant Governor in Council:

Subsection 84(2) – General Provision

This subsection provides the authority to make regulations respecting any matter for which regulations by the Lieutenant Governor in Council are contemplated by the Act.

Subsection 84(3) – Specific Provisions

This subsection provides the following authorities to the Lieutenant Governor in Council to make regulations, including regulations that are considered necessary as a result of amendments to Schedule 1 or Schedule 2 of the Act:

(a) This paragraph provides specific authority to prescribe records to be kept by vendors, wholesale dealers, retail dealers, collectors, deputy collectors, registered consumers, registered air services, registered marine services, motive fuel user permit holders and persons who are required to file returns for the payment of tax under the Act.

(b) This paragraph provides specific authority to prescribe require a person who sells fuel to furnish prescribed information to the person who buys the fuel in prescribed circumstances.

(c) This paragraph provides specific authority to prescribe regulations respecting the duties of vendors, wholesale dealers, retail dealers, collectors, deputy collectors, registered consumers, registered air services, registered marine services and persons who are required to file returns for the payment of tax under the Act.

(c.1) This paragraph provides authority to set the conditions or limitations on the application of section 1.1(2)(a) to (c) to a sale.

(c.2) This paragraph provides authority to make regulations respecting the minimum amount prescribed for a prescribed type of fuel, a prescribed subcategory of a type of fuel or a prescribed class of fuel for the purposes of section 1.1(3)(a)(ii).

(d) This paragraph provides specific authority to prescribe regulations respecting the manner of payment, collection and remittance of tax and payment of security and any other conditions or requirements affecting the payment, collection and remittance of tax or security.

(e) This paragraph provides specific authority to prescribe regulations to establish, for the purposes of Section 13, an amount of tax payable, or a method for determining the amount of tax payable, for a blend or mixture.

(f) This paragraph provides specific authority to prescribe regulations respecting the payment of an allowance under section 35, including the following:

(i) determining the amount of an allowance,

(ii) determining the circumstances in which an allowance or a portion of an allowance is not to be paid, and

(iii) establishing a manner of payment of an allowance.

(g) This paragraph provides specific authority to prescribe regulations to define a word or expression used but not defined in the Act.

(h) This paragraph provides specific authority to, for the purpose of the definition of "use", prescribe circumstances in which a type of activity is a use.

(i) This paragraph provides specific authority to prescribe regulations to establish a system of permits for retail dealers, wholesale dealers and vendors who sell a fuel on which tax is not payable under the Act and for the purpose of establishing a system of permits, may also

(i) prohibit these dealers and vendors from acquiring and selling the fuel on which tax is not payable under the Act in British Columbia unless authorized by a permit,

(ii) prohibit persons from selling the fuel on which tax is not payable under the Act to these dealers and vendors unless the dealer or vendor is authorized to sell that fuel by a permit,

(iii) provide for the issue, refusal to issue, suspension and cancellation of the permits by the director, and

(iv) provide for appeals from a decision respecting the issue or cancellation of a permit (Note: clause (iv) was amended effective September 2, 2009. See above).

(j) With respect to refunds under paragraph (l), (n) or (o), this paragraph provides specific authority to establish regulations that may, without limiting those provisions, do the following:

(i) permit or require the payment of a refund to a person or a class of persons,

(ii) establish circumstances in which a refund may or must be paid, and

(iii) set conditions of, or limitations on, the payment of a refund.

(k) with respect to granting exemptions under paragraph (m), (n) or (o), this paragraph provides specific authority to establish regulations that may, without limiting those provisions, do the following:

(i) provide a full or partial exemption from the payment, collection or remittance of tax or security under one of more provisions of the Act,

(ii) establish circumstances in which an exemption applies, and

(iii) set conditions of, or limitations on, the application of an exemption.

(l) This paragraph provides specific authority to provide for refunds of all or part of a tax, security or other amount paid or remitted under the Act.

(m) This paragraph provides specific authority to provide for exemptions from one or more provisions of the Act.

(n) This paragraph provides specific authority to provide for exemptions from the payment of tax, or for refunds of all or part of the tax paid, with respect to a fuel or combustible that is the source for greenhouse gas emissions that are subject to

(i) section 2 (1)(b) of the Greenhouse Gas Reduction (Cap and Trade) Act,

(ii) section 76.3 (1) of the Environmental Management Act, if equivalent emissions are captured and stored, or captured and sequestered, in accordance with subsection (2) of that section, or

(iii) section 76.4 (b) of the Environmental Management Act.

(o) This paragraph provides specific authority to provide for exemptions from the payment of tax, or for refunds of all or part of the tax paid, with respect to a fuel or combustible that

(i) is used to operate equipment that captures and stores, or captures and sequesters, greenhouse gas in accordance with the regulations, or

(ii) does not or did not emit greenhouse gas into the atmosphere when the fuel or combustible is or was used, as a result of the greenhouse gas being captured and stored, or captured and sequestered, in accordance with the regulations.

(p) This paragraph provides specific authority to prescribe interest rates and the manner of calculating interest for the purposes of the Act.

(q) This paragraph provides specific authority to prescribe regulations respecting fees for certificates under Section 53 and Section 65, including setting the fee and time and manner of payment of the fee.

(r) This paragraph provides specific authority to prescribe regulations respecting appeals to the minister under Section 56, including establishing circumstances in which an appeal to the minister under subsection 56(2) is not permitted.

(s) This paragraph provides specific authority to prescribe regulations respecting duties of persons that own or operate IFTA commercial vehicles to which the Act applies, including:

(i) the payment and refund of deposits, and

(ii) authorizing the director to determine the amount of deposits.

(t) This paragraph provides specific authority to prescribe regulations to establish circumstances in which a retail dealer is exempt from the requirement to collect tax and permitting the director to establish rules for the collection of tax in those circumstances.

(u) This paragraph provides specific authority for a refund under section 41.

(v) This paragraph provides for authority for establishing circumstances to which the exemption under section 14(2)(g) applies and setting conditions of, or limitations on, the exemption.

(w) This paragraph provides for authority for establishing circumstances to which the refund under section 39.1 applies and setting conditions of, or limitations on, the refund.

Subsection 84(4) provides that for the purposes of a regulation made under subsection 84(3)(p), interest may be calculated in a manner that applies, or has the effect of applying, different rates of interest to all or part of an assessment if a person is entitled to a refund under the Act.

Subsection 84(5) provides that in making a regulation under the Act, the Lieutenant Governor in Council may do one or more of the following:

(a) delegate a matter to a person,

(b) confer a discretion on a person,

(c) make different regulations for different persons, fuels, combustibles, places, things, uses or transactions, or classes of persons, fuels, combustibles, places, things, uses or transactions, and

(d) establish or define classes of persons, fuels, combustibles, places, things, uses or transactions.

Subsection 84(6) provided that a regulation made under Section 84 that related to the granting of an exemption or the provision of a refund could have been made retroactive to July 1, 2008 or a later date, and if made retroactive was deemed to have come into force on the specified date. Subsection 84(6) was repealed by subsection 84(6) on July 1, 2011.

Subsection 84(6.4) provides that a regulation made before December 31, 2012 in relation to section 1.1 may be made retroactive to May 1, 2012.

Subsection 84(6.5) provides that a regulation made before July 1, 2014 in relation to sections 8.1, 14(2) or 39.1 may be made retroactive to January 1, 2014.

Section 85 – Regulations –Transitional

CTA - SEC. 85/Int.

Interpretation (Issued: 2011/11)

Effective July 1, 2011, Section 85 was repealed by subsection 85(4).

Effective July 1, 2008, Section 85 gave temporary regulation making powers to the Lieutenant Governor in Council to resolve any difficulties or problems arising from the introduction of the carbon tax.

Section 85 gave the following temporary regulation making powers to the Lieutenant Governor in Council:

85(1) (a) This paragraph provided specific authority to prescribe regulations respecting any matter that the Lieutenant Governor in Council considered was not provided for, or was not sufficiently provided for, in the Act.

(b) This paragraph provided specific authority to prescribe regulations to make provisions that the Lieutenant Governor in Council considered appropriate for the purpose of more effectively bringing the Act into operation.

(c) This paragraph provided specific authority to prescribe regulations to make provisions that the Lieutenant Governor in Council considered appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties in bringing the Act into effect, including, without limitation, provisions that made an exception to or a modification of a provision in an enactment or providing for the application or continued application of a previous enactment.

(d) This paragraph provided specific authority to prescribe regulations that resolved any errors, inconsistencies or ambiguities in the Act.

Subsection 85(2) provided that a regulation made under subsection 85(1) could have been made retroactive to July 1, 2008 or a later date, and if made retroactive was deemed to have come into force on the specified date.

Subsection 85(3) provided that to the extent of any conflict between a regulation under subsection 85(1) and another enactment, the regulation prevails.

Subsection 85(4) provided that any regulations made under this section were repealed on July 1, 2011. Therefore, any amendments that were not confirmed by the Legislative Assembly in legislation would have expired.

Schedule 1

CTA - SCHEDULE 1/Aviation Fuel/Int.

“Aviation Fuel”

References: Schedule 1 “jet fuel”; Motor Fuel Tax Act Section 1 “aviation fuel”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “aviation fuel” is defined under Schedule 1 as a substance suitable to power an aircraft that is not propelled by a turbine. Aviation fuel can be a specialized type of petroleum based fuel used to power piston-powered aircraft. Most aviation fuels are kinds of petroleum spirits used in engines with spark plugs.

See also CTA/SCHEDULE 1/JET FUEL/Int.

CTA - SCHEDULE 1/Biodiesel/Int.

“Biodiesel”

References: Section 1 “biodiesel”, “fuel”; Schedule 1 “light fuel oil”, “renewable diesel fuel”; Motor Fuel Tax Act Section 1 “biodiesel fuel”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, added a definition of “biodiesel” to Schedule 1. Biodiesel is defined as a substance that is made up of mono-alkyl esters of long chain fatty acids derived from plant or animal matter.

This addition was consequential to the inclusion of biodiesel as a taxable Schedule 1 fuel.

Note: the table in Schedule 1 does not include a specific row of carbon tax rates for biodiesel. This is because biodiesel is included in the definition of “renewable diesel fuel”, which is included in the definition of “light fuel oil”. Therefore, biodiesel is captured by the definition of light fuel oil and is subject to the carbon tax rates for light fuel oil.

Prior to January 1, 2010, biodiesel was not a taxable fuel under the Act (biodiesel was specifically excluded from the definition of fuel under Section 1). This was consistent with government’s policy of encouraging the use of biodiesel, and other biofuels, by either not taxing them, or taxing them at a preferential rate.

However, government later chose to pursue the same policy with a different tool, mandating a percentage of fuel sold in the province be “biofuel” or “renewable fuel”. The initial mandated percentage was five per cent, under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, which came into force on January 1, 2010.

CTA - SCHEDULE 1/Diesel Engine/Int.

“Diesel Engine”

References: Schedule 1 “gasoline”, “light fuel oil”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “diesel engine” is defined under Schedule 1 as an internal combustion engine, including a stationary engine, in which internal combustion is initiated by compression. This term is used in the Schedule 1 definitions of “gasoline” and “light fuel oil”.

CTA - SCHEDULE 1/Gas Liquids/Int.

“Gas Liquids”

References: Schedule 1 “natural gas”, “pentanes plus”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, added a definition of “gas liquids” to Schedule 1. Gas liquids is defined as a mixture of two or more of ethane, propane, butane or pentanes plus, whether in gaseous or liquid form, that

(a) is obtained from the processing of natural gas or crude oil, and

(b) has never been processed into separate identifiable fuels,

but does not include a mixture of ethane, propane, butane or pentanes plus that is created after the ethane, propane, butane or pentanes plus have been processed into separate identifiable fuels and then remixed into a blend of one or more of the fuels.

This addition was consequential to the inclusion of gas liquids as a taxable Schedule 1 fuel.

In the first years of the carbon tax an issue arose on how to treat unprocessed fuels that were a blend of Schedule 1 fuels. To resolve this issue, government enacted this definition as part of amendments to treat the fuels as a single fuel until separated.

CTA - SCHEDULE 1/Gasoline/Int.

“Gasoline”

References: Schedule 1 “diesel engine”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “gasoline” is defined under Schedule 1 as a substance suitable for generating power by means of an internal combustion engine, other than a diesel engine, but does not include any other fuel.

SCHEDULE 1

CTA - SCHEDULE 1/General/Int. – R.1

General

References: Section 1 “combustibles”, “fuels”; Schedule 1 “standard reference conditions”; Schedule 2

Interpretation (Issued: 2011/11, Revised: 2014/08)

Effective May 14, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, amends the heading to column 8 of Schedule 1. The new heading reads "Rate of tax for the year starting July 1, 2012 and each subsequent year starting July 1."

Effective January 1, 2010, Bill 2, Budget Measures Implementation Act, 2010 added Subsection (4) to Schedule 1, consequential to the addition of “gas liquids” as a new fuel type subject to tax under the Act.

Effective July 1, 2008, the Table in Schedule 1 provides the enacted carbon tax rates on fuels. Please see R.1 for a history of carbon tax rates on fuels.

Many of the fuels listed are defined under subsection (1).

Subsection (2) provides that measurements of fuel must be done at standard reference conditions. Changes in temperature or pressure, or both, can change the volume of a liquid or gas. Without this provision, the amount of tax payable under the Carbon Tax Act would vary depending on the temperature of the fuel.

Subsection (3) provides that for calculating the amount of tax payable for a fuel set out in column 2 of the table in Schedule 1, when the rate of tax is based on cubic metres, the rate of tax must be multiplied by the amount of liquids or gaseous fuels measured in cubic metres at standard reference conditions.

R.1 History of Carbon Tax Rates on Fuels (Schedule 1) (Issued: 2011/11)

Note: the following tables provide the enacted carbon tax rates on fuels under Schedule 1 and their effective dates. However, only the most recent table should be referenced in regards to actual rates that were payable at any given time, as there has never been a retrospective tax rate change.

For the history of carbon tax rates on combustibles, see CTA/SCHEDULE 2/R.1

Effective March 3, 2010, the following carbon tax rates on fuels under Schedule 1 are in effect:

Carbon Tax Rates on Fuels Under Schedule 1 (March 3, 2010)
Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8
Item	Type of Fuel	Rate of tax for the year starting July 1, 2008	Rate of tax for the period starting July 1, 2009 and ending December 31, 2009	Rate of tax for the period starting January 1, 2010 and ending June 30, 2010	Rate of tax for the year starting July 1, 2010	Rate of tax for the year starting July 1, 2011	Rate of tax for the year starting July 1, 2012
1	Aviation Fuel	2.46 ¢/L	3.69 ¢/L	3.69 ¢/L	4.92 ¢/L	6.15 ¢/L	7.38 ¢/L
2	Gasoline	2.34 ¢/L	3.51 ¢/L	3.33 ¢/L	4.45 ¢/L	5.56 ¢/L	6.67 ¢/L
3	Heavy Fuel Oil	3.15 ¢/L	4.73 ¢/L	4.73 ¢/L	6.30 ¢/L	7.88 ¢/L	9.45 ¢/L
4	Jet Fuel	2.61 ¢/L	3.92 ¢/L	3.92 ¢/L	5.22 ¢/L	6.53 ¢/L	7.83 ¢/L
5	Kerosene	2.54 ¢/L	3.81 ¢/L	3.81 ¢/L	5.22 ¢/L	6.53 ¢/L	7.83 ¢/L
6	Light Fuel Oil	2.69 ¢/L	4.04 ¢/L	3.84 ¢/L	5.11 ¢/L	6.39 ¢/L	7.67 ¢/L
7	Methanol	1.09 ¢/L	1.64 ¢/L	1.64 ¢/L	2.18 ¢/L	2.73 ¢/L	3.27 ¢/L
8	Naphtha	2.55 ¢/L	3.83 ¢/L	3.83 ¢/L	5.10 ¢/L	6.38 ¢/L	7.65 ¢/L
9	Butane	1.76 ¢/L	2.64 ¢/L	2.64 ¢/L	3.52 ¢/L	4.40 ¢/L	5.28 ¢/L
10	Coke Oven Gas	1.61 ¢/m3	2.42 ¢/m3	2.42 ¢/m3	3.22 ¢/m3	4.03 ¢/m3	4.83 ¢/m3
11	Ethane	0.98 ¢/L	1.47 ¢/L	1.47 ¢/L	1.96 ¢/L	2.45 ¢/L	2.94 ¢/L
12	Propane	1.54 ¢/L	2.31 ¢/L	2.31 ¢/L	3.08 ¢/L	3.85 ¢/L	4.62 ¢/L
13	Natural Gas	1.90 ¢/m3	2.85 ¢/m3	2.85 ¢/m3	3.80 ¢/m3	4.75 ¢/m3	5.70 ¢/m3
14	Refinery Gas	1.76 ¢/m3	2.64 ¢/m3	2.64 ¢/m3	3.52 ¢/m3	4.40 ¢/m3	5.28 ¢/m3
15	High Heat Value Coal	20.77 $/tonne	31.16 $/tonne	31.16 $/tonne	41.54 $/tonne	51.93 $/tonne	62.31 $/tonne
16	Low Heat Value Coal	17.77 $/tonne	26.66 $/tonne	26.66 $/tonne	35.54 $/tonne	44.43 $/tonne	53.31 $/tonne
17	Coke	24.87 $/tonne	37.31 $/tonne	37.31 $/tonne	49.74 $/tonne	62.18 $/tonne	74.61 $/tonne
18	Petroleum Coke	3.67 ¢/L	5.51 ¢/L	5.51 ¢/L	7.34 ¢/L	9.18 ¢/L	11.01 ¢/L
19	Gas Liquids	-	-	2.48 ¢/L	3.30 ¢/L	4.13 ¢/L	4.95 ¢/L
20	Pentanes Plus	-	-	2.64 ¢/L	3.52 ¢/L	4.40 ¢/L	5.28 ¢/L

Bill 2, Budget Measures Implementation Act, 2010 amended the Schedule 1 rates for kerosene (item 5) only. The carbon tax rates for kerosene were increased to equal the jet fuel carbon tax rates, to remove a costly compliance burden.

Effective January 1, 2010, the following carbon tax rates on fuels under Schedule 1 were in effect:

Carbon Tax Rates on Fuels Under Schedule 1 (January 1, 2010)
Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8
Item	Type of Fuel	Rate of tax for the year starting July 1, 2008	Rate of tax for the period starting July 1, 2009 and ending December 31, 2009	Rate of tax for the period starting January 1, 2010 and ending June 30, 2010	Rate of tax for the year starting July 1, 2010	Rate of tax for the year starting July 1, 2011	Rate of tax for the year starting July 1, 2012
1	Aviation Fuel	2.46 ¢/L	3.69 ¢/L	3.69 ¢/L	4.92 ¢/L	6.15 ¢/L	7.38 ¢/L
2	Gasoline	2.34 ¢/L	3.51 ¢/L	3.33 ¢/L	4.45 ¢/L	5.56 ¢/L	6.67 ¢/L
3	Heavy Fuel Oil	3.15 ¢/L	4.73 ¢/L	4.73 ¢/L	6.30 ¢/L	7.88 ¢/L	9.45 ¢/L
4	Jet Fuel	2.61 ¢/L	3.92 ¢/L	3.92 ¢/L	5.22 ¢/L	6.53 ¢/L	7.83 ¢/L
5	Kerosene	2.54 ¢/L	3.81 ¢/L	3.81 ¢/L	5.08 ¢/L	6.35 ¢/L	7.62 ¢/L
6	Light Fuel Oil	2.69 ¢/L	4.04 ¢/L	3.84 ¢/L	5.11 ¢/L	6.39 ¢/L	7.67 ¢/L
7	Methanol	1.09 ¢/L	1.64 ¢/L	1.64 ¢/L	2.18 ¢/L	2.73 ¢/L	3.27 ¢/L
8	Naphtha	2.55 ¢/L	3.83 ¢/L	3.83 ¢/L	5.10 ¢/L	6.38 ¢/L	7.65 ¢/L
9	Butane	1.76 ¢/L	2.64 ¢/L	2.64 ¢/L	3.52 ¢/L	4.40 ¢/L	5.28 ¢/L
10	Coke Oven Gas	1.61 ¢/m3	2.42 ¢/m3	2.42 ¢/m3	3.22 ¢/m3	4.03 ¢/m3	4.83 ¢/m3
11	Ethane	0.98 ¢/L	1.47 ¢/L	1.47 ¢/L	1.96 ¢/L	2.45 ¢/L	2.94 ¢/L
12	Propane	1.54 ¢/L	2.31 ¢/L	2.31 ¢/L	3.08 ¢/L	3.85 ¢/L	4.62 ¢/L
13	Natural Gas	1.90 ¢/m3	2.85 ¢/m3	2.85 ¢/m3	3.80 ¢/m3	4.75 ¢/m3	5.70 ¢/m3
14	Refinery Gas	1.76 ¢/m3	2.64 ¢/m3	2.64 ¢/m3	3.52 ¢/m3	4.40 ¢/m3	5.28 ¢/m3
15	High Heat Value Coal	20.77 $/tonne	31.16 $/tonne	31.16 $/tonne	41.54 $/tonne	51.93 $/tonne	62.31 $/tonne
16	Low Heat Value Coal	17.77 $/tonne	26.66 $/tonne	26.66 $/tonne	35.54 $/tonne	44.43 $/tonne	53.31 $/tonne
17	Coke	24.87 $/tonne	37.31 $/tonne	37.31 $/tonne	49.74 $/tonne	62.18 $/tonne	74.61 $/tonne
18	Petroleum Coke	3.67 ¢/L	5.51 ¢/L	5.51 ¢/L	7.34 ¢/L	9.18 ¢/L	11.01 ¢/L
19	Gas Liquids	-	-	2.48 ¢/L	3.30 ¢/L	4.13 ¢/L	4.95 ¢/L
20	Pentanes Plus	-	-	2.64 ¢/L	3.52 ¢/L	4.40 ¢/L	5.28 ¢/L

Bill 2, Budget Measures Implementation Act (No. 2), 2009 reduced rates for gasoline (item 2) and light fuel oil (item 6) by five per cent, consequential to the imposition of a five per cent renewable fuel standard (RFS) under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act effective January 1, 2010. See CTA/SEC. 1/FUEL/Int. for more details on the RFS.

Bill 2 also enacted the following additional changes to the table in Schedule 1:

“Marketable natural gas” (item 12) was removed from the table, consequential to the elimination of the distinction between raw and marketable natural gas. As a result, all natural gas is taxed at the rate provided for “Natural Gas” (item 13). As a result of the deletion of item 12, the previous items 13-19 received new item numbers.
Rates were added for “gas liquids” and “pentanes plus” (items 19 and 20 respectively) consequential to the addition of these fuel categories to the Act.

No changes were made to the rates for items 1, 3-5, and 7-18.

Effective July 1, 2008, Bill 37, Carbon Tax Act and B.C. Reg. 124/2008 enacted the following carbon tax rates on fuels under Schedule 1:

Carbon Tax Rates on Fuels Under Schedule 1 (July 1, 2008)
Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
Item	Type of Fuel	Rate of tax for the year starting on July 1, 2008	Rate of tax for the year starting on July 1, 2009	Rate of tax for the year starting on July 1, 2010	Rate of tax for the year starting on July 1, 2011	Rate of tax for the year starting on July 1, 2012
1	Aviation Fuel	2.46 ¢/L	3.69 ¢/L	4.92 ¢/L	6.15 ¢/L	7.38 ¢/L
2	Gasoline	2.34 ¢/L	3.51 ¢/L	4.68 ¢/L	5.85 ¢/L	7.02 ¢/L
3	Heavy Fuel Oil	3.15 ¢/L	4.73 ¢/L	6.30 ¢/L	7.88 ¢/L	9.45 ¢/L
4	Jet Fuel	2.61 ¢/L	3.92 ¢/L	5.22 ¢/L	6.53 ¢/L	7.83 ¢/L
5	Kerosene	2.54 ¢/L	3.81 ¢/L	5.08 ¢/L	6.35 ¢/L	7.62 ¢/L
6	Light Fuel Oil	2.69 ¢/L	4.04 ¢/L	5.38 ¢/L	6.73 ¢/L	8.07 ¢/L
7	Methanol	1.09 ¢/L	1.64 ¢/L	2.18 ¢/L	2.73 ¢/L	3.27 ¢/L
8	Naphtha	2.55 ¢/L	3.83 ¢/L	5.10 ¢/L	6.38 ¢/L	7.65 ¢/L
9	Butane	1.76 ¢/L	2.64 ¢/L	3.52 ¢/L	4.40 ¢/L	5.28 ¢/L
10	Coke Oven Gas	1.61 ¢/m	32.42 ¢/m	33.22 ¢/m	34.03 ¢/m	34.83 ¢/m3
11	Ethane	0.98 ¢/L	1.47 ¢/L	1.96 ¢/L	2.45 ¢/L	2.94 ¢/L
12	Marketable Natural Gas	1.90 ¢/m3	2.85 ¢/m3	3.80 ¢/m3	4.75 ¢/m3	5.70 ¢/m3
13	Propane	1.54 ¢/L	2.31 ¢/L	3.08 ¢/L	3.85 ¢/L	4.62 ¢/L
14	Raw Natural Gas	1.90 ¢/m3	2.85 ¢/m3	3.80 ¢/m3	4.75 ¢/m3	5.70 ¢/m3
15	Refinery Gas	1.76 ¢/m3	2.64 ¢/m3	3.52 ¢/m3	4.40 ¢/m3	5.28 ¢/m3
16	High Heat Value Coal	20.77 $/tonne	31.16 $/tonne	41.54 $/tonne	51.93 $/tonne	62.31 $/tonne
17	Low Heat Value Coal	17.77 $/tonne	26.66 $/tonne	35.54 $/tonne	44.43 $/tonne	53.31 $/tonne
18	Coke	24.87 $/tonne	37.31 $/tonne	49.74 $/tonne	62.18 $/tonne	74.61 $/tonne
19	Petroleum Coke	3.67 ¢/L	5.51 ¢/L	7.34 ¢/L	9.18 ¢/L	11.01 ¢/L

CTA - SCHEDULE 1/Heavy Fuel Oil/Int.

“Heavy Fuel Oil”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “heavy fuel oil” is defined under Schedule 1 as a substance that is a distillate or a residual of crude oil and that has a viscosity of greater than 14 centistokes at 50°C.

Heavy fuel oil has a variety of uses, including in marine bunkers, and for asphalt and roofing tar.

Residual oil is crude oil left in the subsurface rock after primary oil production. Viscosity is a measure of the internal resistance or friction of a fluid to flow, or stress rate. The viscosity of the oil will influence the rate of oil production and the amount of ultimate recovery of the oil. Centistokes are a unit of viscosity.

Crude oil is a natural liquid that comes from wells. It varies in chemical composition and physical properties.

Note: crude oil is not heavy fuel oil. In order to be taxed, it must be a distillate or residual.

CTA - SCHEDULE 1/High Heat Value Coal/Int.

“High Heat Value Coal”

Reference: Schedule 1 “low heat value coal”

Interpretation (Issued: 2011/11; Revised: 2015/08)

Effective July 1, 2008, “high heat value coal” is defined under Schedule 1 as bituminous coal and any other coal with a heating value greater than 27,000 kJ per kg.

"High heat value coal" is any coal (including sub-bituminous coal) with a heat value of greater than 27,000 kJ per kg. A "heating value" greater than 27,000 kJ per kg refers to how much energy the coal releases when combusted under regular conditions. A “heating value” greater than 27,000 kJ per kg refers to how much energy the coal releases when combusted under regular conditions.

To provide a clear rule that would capture all ranks and sub-ranks (and blends) of coal, it was necessary to describe them based on their heat value. To take another approach would have added significantly more complexity to the scheme and increased the risk that some type of coal (or blend) would be not captured by the carbon tax.

See also CTA/SCHEDULE 1/LOW HEAT VALUE COAL/Int.

CTA - SCHEDULE 1/Hydrogenated-Derived Renewable Diesel Fuel/Int.

“Hydrogenated-Derived Renewable Diesel Fuel”

References: Section 1 “biodiesel”, “fuel”; Schedule 1 “biodiesel”, “light fuel oil”, “renewable diesel fuel”; Motor Fuel Tax Act Section 1 “hydrogenated-derived renewable diesel fuel”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, added a definition of “hydrogenated-derived renewable diesel fuel” to Schedule 1. Hydrogenated-derived renewable diesel fuel is defined as a substance that is made from plant or animal matter using a hydrogenation process.

This addition was consequential to the inclusion of biodiesel as a taxable Schedule 1 fuel.

Note: the table in Schedule 1 does not include a specific row of carbon tax rates for hydrogenated-derived renewable diesel fuel. This is because hydrogenated-derived renewable diesel fuel is included in the definition of “renewable diesel fuel”, which is included in the definition of “light fuel oil”. Therefore, hydrogenated-derived renewable diesel fuel is captured by the definition of light fuel oil and is subject to the carbon tax rates for light fuel oil.

CTA - SCHEDULE 1/Internal Combustion Engine/Int.

“Internal Combustion Engine”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “internal combustion engine” is defined under Schedule 1 as including a turbine engine that generates power by the use of fuel.

CTA - SCHEDULE 1/Jet Fuel/Int.

“Jet Fuel”

References: Schedule 1 “aviation fuel”; Motor Fuel Tax Act Section 1 “jet fuel”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “jet fuel” is defined under Schedule 1 as a substance suitable to power an aircraft that is propelled by a turbine.

Notes about jet fuel:

Jet fuel is a mixture of a large number of different hydrocarbons.
Jet aircraft engines typically use fuels with higher flash points which are less flammable and therefore safer to transport and handle. Most jet fuels are kerosene based.
Jet fuel is very similar to diesel fuel and may be burned in diesel engines.

See also CTA/SCHEDULE 1/AVIATION FUEL/Int.

CTA - SCHEDULE 1/Light Fuel Oil/Int.

“Light Fuel Oil”

References: Section 1 “biodiesel”, “fuel”; Schedule 1 “biodiesel”, “diesel engine”, “gas liquids” “jet fuel”, “kerosene”, “pentanes plus”, “refinery gas”, “renewable diesel fuel”; Motor Fuel Tax Act Section 1 “heating oil”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, amended the definition of “light fuel oil” under Schedule 1. Light fuel oil is now defined as a substance that is

(a) a distillate of crude oil that has a viscosity of not greater than 14 centistokes at 50°C,

(b) renewable diesel fuel, or

and is suitable

(d) for generating power by means of a diesel engine, or

(e) for use in a furnace, boiler or open flame burner

but does not include butane, ethane, gas liquids, jet fuel, kerosene, naphtha, propane, pentanes plus or refinery gas.

This amendment was consequential to the inclusion of biodiesel, gas liquids and pentanes plus as taxable Schedule 1 fuels. Biodiesel is now included in the definition of light fuel oil under paragraph (b) of the amended definition, and is therefore subject to the carbon tax rates for light fuel oil.

Effective July 1, 2008, “light fuel oil” was defined as a substance that is a distillate of crude oil, has a viscosity of not greater than 14 centistokes at 50°C and is suitable

(a) for generating power by means of a diesel engine, or

(b) for use in a furnace, boiler or open flame burner;

but does not include butane, ethane, jet fuel, kerosene, naphtha, propane and refinery gas;

CTA - SCHEDULE 1/Low Heat Value Coal/Int.

“Low Heat Value Coal”

Reference: Schedule 1 “high heat value coal”

Interpretation (Issued: 2011/11; Revised: 2015/08)

Effective July 1, 2008, “low heat value coal” is defined under Schedule 1 as sub-bituminous coal and any other coal with a heating value up to and including 27,000 kJ per kg.

"Low heat value coal" is any coal (including bituminous coal) with a heat value of up to and including 27,000 kJ per kg. A "heating value" up to and including 27,000 kJ per kg refers to how much energy the coal releases when combusted under regular conditions.

See also CTA/SCHEDULE 1/HIGH HEAT VALUE COAL/Int.

CTA - SCHEDULE 1/Marketable Natural Gas/Int.

“Marketable Natural Gas”

References: Section 1 “natural gas”; Schedule 1 “natural gas liquids”, “natural gas”, “raw natural gas”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, repealed the definition of “marketable natural gas”. This amendment was consequential to the elimination of the distinction between raw and marketable natural gas. The definitions of “natural gas liquids” and “raw natural gas” were also repealed, and a new definition of “natural gas” was enacted under Schedule 1. As a result, all natural gas is treated the same regardless of where it is used or sold.

Prior to January 1, 2010, “marketable natural gas” was defined as natural gas, whether or not the natural gas

(a) occurs naturally or results from processing, and

(b) contains natural gas liquids,

and includes compressed natural gas but does not include raw natural gas or refinery gas.

CTA - SCHEDULE 1/Natural Gas/Int.

“Natural Gas”

References: Section 1 “natural gas”; Schedule 1 “marketable natural gas”, “natural gas liquids”, “raw natural gas”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, added a definition of “natural gas” to Schedule 1. Natural gas is defined as natural gas, whether or not the natural gas

(a) occurs naturally or results from processing, or

(b) contains gas liquids,

but does not include refinery gas.

This amendment was consequential to the elimination of the distinction between raw and marketable natural gas. The definitions of “marketable natural gas”, “natural gas liquids” and “raw natural gas” were repealed. As a result, all natural gas is treated the same regardless of where it is used or sold.

CTA - SCHEDULE 1/Natural Gas Liquids/Int.

“Natural Gas Liquids”

References: Section 1 “natural gas”; Schedule 1 “marketable natural gas”, “natural gas”, “raw natural gas”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, repealed the definition of “natural gas liquids”. This amendment was consequential to the elimination of the distinction between raw and marketable natural gas. The definitions of “marketable natural gas” and “raw natural gas” were also repealed, and a new definition of “natural gas” was enacted under Schedule 1. As a result, all natural gas is treated the same regardless of where it is used or sold.

Prior to January 1, 2010, “natural gas liquids” was defined as butane, ethane, propane and other condensates, whether in a gaseous or liquid form. The table in Schedule 1 did not include a specific row of carbon tax rates for natural gas liquids. This is because the term was included in the definitions of “marketable natural gas” and “raw natural gas”, each of which had a specific row of carbon tax rates.

Butane is a waste product removed from natural gas during processing that can be blended with traditional gasoline. Butanes are highly flammable, colorless, odorless, easily liquefied gases.

Ethane is a byproduct of petroleum refining. Its chief use is as petrochemical feedstock for ethylene production.

Propane is a three-carbon alkane, normally a gas, but compressible to a transportable liquid. It is derived from other petroleum products during oil or natural gas processing. It is commonly used as a fuel for engines, barbeques, and home heating systems.

Note: the definition implied that butane, ethane and propane were a form of condensate, however, in industry, they are not considered condensates.

At standard reference conditions, condensates are liquid. Condensates are removed and sold separately (for example, they can be used in plastic production).

CTA - SCHEDULE 1/Pentanes Plus/Int.-R.1

“Pentanes Plus”

Reference: Schedule 1 “natural gas”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, added a definition of “pentanes plus” to Schedule 1. Pentanes plus is defined as pentane, heavier hydrocarbons or a combination of both, but does not include any other fuel.

Prior to January 1, 2010, the Ministry considered pentanes plus or condensates to be part of natural gas. However, industry indicated that pentanes plus were a distinct fuel. Therefore, Schedule 1 was amended to better align the statutory taxonomy with industry terms.

R.1 Iso-octane (Issued 2014/10)

Iso-octane is used as a component of fuel used in internal combustion engines and often as an anti-knocking additive to the fuel. It falls under the category of pentanes plus for the purposes of the Act, as it is a hydrocarbon and it is heavier than pentane.

CTA - SCHEDULE 1/Raw Natural Gas/Int.

“Raw Natural Gas”

References: Section 1 “natural gas”; Schedule 1 “marketable natural gas”, “natural gas”, “natural gas liquids”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, repealed the definition of “raw natural gas”. This amendment was consequential to the elimination of the distinction between raw and marketable natural gas. The definitions of “marketable natural gas” and “natural gas liquids” were also repealed, and a new definition of “natural gas” was enacted under Schedule 1. As a result, all natural gas is treated the same regardless of where it is used or sold.

Prior to January 1, 2010, “raw natural gas” was defined as natural gas, whether or not it contains natural gas liquids, that occurs naturally, is not processed, and had not been and is not removed from the well site.

CTA - SCHEDULE 1/Refinery Gas/Int.

“Refinery Gas”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “refinery gas” is defined under Schedule 1 as gas for use in an oil refinery that is produced as a result of distillation, cracking, reforming or other oil refining processes.

CTA - SCHEDULE 1/Renewable Biodiesel Fuel/Int.

“Renewable Diesel Fuel”

References: Section 1 “biodiesel”, “fuel”; Schedule 1 “biodiesel”, “light fuel oil”, “hydrogenated-derived renewable diesel fuel”; Motor Fuel Tax Act Section 1 “renewable diesel fuel”

Interpretation (Issued: 2011/11)

Effective January 1, 2010, Bill 2 – Budget Measures Implementation Act (No. 2), 2009, added a definition of “renewable diesel fuel” to Schedule 1. Renewable diesel fuel is defined as biodiesel fuel, or hydrogenated-derived renewable diesel fuel.

This addition was consequential to the inclusion of biodiesel as a taxable Schedule 1 fuel.

Note: the table in Schedule 1 does not include a specific row of carbon tax rates for renewable diesel fuel. This is because renewable diesel fuel is included in the definition of “light fuel oil”. Therefore, renewable diesel fuel is captured by the definition of light fuel oil and is subject to the carbon tax rates for light fuel oil.

CTA - SCHEDULE 1/Standard Reference Conditions/Int.

“Standard Reference Conditions”

Reference: Motor Fuel Tax Act Section 1 “standard reference conditions”

Interpretation (Issued: 2011/11)

Effective July 1, 2008, “standard reference conditions” is defined under Schedule 1 as, in the case of:

(a) A gas, a temperature of 15°C.

(b) A liquid, a temperature of 15°C.

This definition is used for the purposes of subsections (2) and (3) of Schedule 1 to ensure the correct amount of tax is payable under the Carbon Tax Act.

Schedule 2

CTA - SCHEDULE 2/Int. – R.2

References: Section 1 “combustible”, “fuel”; Schedule 1

Interpretation (Issued: 2011/11, Revised: 2014/08)

Effective May 14, 2012, Bill 21-2012 Budget Measures Implementation Act, 2012, amends the heading to column 8 of Schedule 2. The new heading reads "Rate of tax for the year starting July 1, 2012 and each subsequent year starting July 1."

Effective July 1, 2008, the Table in Schedule 2 provides the enacted carbon tax rates on combustibles. Only 3 combustibles were added to Schedule 2: “peat”, “tires – shredded”, and “tires – whole”. None of these combustibles are defined under the Act or Regulations.

Please see R.1 for a history of carbon tax rates on combustibles.

R.1 History of Carbon Tax Rates on Combustibles (Schedule 2) (Issued: 2011/11)

Note: For the history of carbon tax rates on fuels, see CTA/SCHEDULE 1/GENERAL/R.1

Effective July 1, 2008, Bill 37, Carbon Tax Act enacted the following carbon tax rates on combustibles under Schedule 2:

Carbon Tax Rates on Combustibles Under Schedule 2 (July 1, 2008)
Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
Item	Type of Combustible	Rate of tax for the year starting on July 1, 2008	Rate of tax for the year starting on July 1, 2009	Rate of tax for the year starting on July 1, 2010	Rate of tax for the year starting on July 1, 2011	Rate of tax for the year starting on July 1, 2012
1	Peat	10.22 $/tonne	15.33 $/tonne	20.44 $/tonne	25.55 $/tonne	30.66 $/tonne
2	Tires - Shredded	23.91 $/tonne	35.87 $/tonne	47.82 $/tonne	59.78 $/tonne	71.73 $/tonne
3	Tires - Whole	20.80 $/tonne	31.20 $/tonne	41.60 $/tonne	52.00 $/tonne	62.40 $/tonne

R.2 Tires – Shredded (Issued: 2011/11)

Some tire recyclers produce a product called “tire fluff.” Tire fluff is the textile cord reinforcements and other fibres contained in tires. Tire recyclers shred tires and separate the fluff from the steel and rubber contained in the tire. The recycler then sells the fluff. Tire fluff is often purchased for combustion in cement plant kilns. In most cases, the tire fluff contains incidental amounts of steel and rubber.

Tire fluff is included in the meaning of “Tires – Shredded” for the purposes of the Table in Schedule 2. Accordingly, tire fluff is a taxable combustible and subject to the carbon tax.

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Tax Interpretation Manual: Carbon Tax Act - Sections

Section 1 – Interpretation

CTA - SEC. 1/Assessment/Int.

“Assessment”

CTA - SEC. 1/Biodiesel/Int.

“Biodiesel”

CTA - SEC. 1/Int.

"Biomethane"

CTA - SEC. 1/Int.

"Biomethane Credit"

CTA - SEC. 1/Board Member/Int.

“Board Member”

CTA - SEC. 1/Buy/Int.

“Buy”

CTA - SEC. 1/Collector/Int.

“Collector”

CTA - SEC. 1/Combustible/Int.

“Combustible”

CTA - SEC.1/Common Carrier/Int.

Common Carrier

CTA - SEC. 1/Deputy Collector/Int.

“Deputy Collector”

CTA - SEC. 1/Director/Int.

“Director”

CTA - SEC. 1/Farmer/Int.

"Farmer"

CTA - SEC. 1/Fuel/Int. – R.2

“Fuel”

R.1 Ethanol (Issued: 2011/11)

R.2 Tank Bottoms (Issued: 2011/11)

CTA - SEC. 1/IFTA Commercial Vehicle/Int.

“IFTA Commercial Vehicle”

CTA - SEC. 1/Litre/Int.

“Litre”

CTA - SEC. 1/Month/Int.

“Month”

CTA - SEC. 1/Motive Fuel User Permit/Int.

“Motive Fuel User Permit”

CTA - SEC. 1/Motor Vehicle/Int.

“Motor Vehicle”

CTA - SEC. 1/Natural Gas/Int.

“Natural Gas”

CTA - SEC. 1/Person/Int.

“Person”

CTA - SEC. 1/Purchaser/Int.

“Purchaser”

CTA - SEC. 1/Refiner Collector/Int.

“Refiner Collector”

CTA - SEC. 1/Registered Air Service/Int.

“Registered Air Service”

CTA - SEC. 1/Registered Air Service Certificate/Int.

“Registered Air Service Certificate”

CTA - SEC. 1/Registered Consumer/Int.

CTA - SEC. 1/Registered Consumer Certificate/Int.

“Registered Consumer Certificate”

CTA - SEC. 1/Registered Marine Service/Int.

“Registered Marine Service”

CTA - SEC. 1/Registered Marine Service Certificate/Int.

“Registered Marine Service Certificate”

CTA - SEC. 1/Registration Certificate/Int.

“Registration Certificate”

CTA - SEC. 1/Retail Dealer/Int. – R.1

“Retail Dealer”

R.1 Recycled Fuels (Issued: 2011/11)

CTA - SEC. 1/Scheduled Rate Change/Int.

“Scheduled Rate Change”

CTA - SEC. 1/Security/Int.

“Security”

CTA - SEC. 1/Sell/Int.

“Sell”

CTA - SEC. 1/Ship/Int.

“Ship”

CTA - SEC. 1/Tax/Int.

“Tax”

CTA - SEC. 1/Unscheduled Rate Change/Int.

“Unscheduled Rate Change”

CTA - SEC. 1/Use/Int. – R.2

“Use”

R.1 Use as a Feedstock or Non-Energy Use (Issued: 2011/11)

PART 2
PLANS AND REPORTS RESPECTING THE CARBON TAX