Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and Specialty Tax Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Client]
[Client Address]
Date: August 15, 2023
Case Number: 9000208
Dear [Client],
Subject: Application of the fuel charge on fuel brought into a listed province in the supply tank of an aircraft of a registered air carrier
Thank you for your letter dated February 5, 2023, regarding the application of the Greenhouse Gas Pollution Pricing Act (GGPPA) to fuel brought into a listed province in the supply tank of an aircraft belonging to a registered air carrier.
Interpretation requested:
You want to know if the fuel charge is payable on the fuel brought into a listed province (Alberta) for the fuel in the supply tank of the aircraft.
Statement of Facts:
* A commercial airline operates scheduled flights in BC and Alberta (a listed province)
* The airline transports passengers and goods for members of the public
* The airline is registered under the GGPPA as a registered air carrier as most of its flights are intraprovincial
* Approximately 35% of flights and fuel used is for interprovincial flights between Alberta and BC
* Flights arriving in Alberta from outside the province have residual fuel in the supply tank, which could have been purchased either inside or outside of a listed province
Interpretation Given
Unless otherwise stated, references are to Part 1 of the GGPPA:
Note that the GGPPA distinguishes between fuel “brought in” to a listed province and fuel “imported” into a listed province. Fuel brought in to a listed province is coming from another place within Canada, while fuel imported into a listed province is coming from a place outside of Canada. Since the aircraft in your question is travelling from BC to Alberta, the fuel in its supply tank is being “brought in” to the listed province of Alberta.
Subsection 19(1) states that a person who brings fuel into a listed province must pay the fuel charge on that amount of fuel if the person holds certain fuel charge registration types including registered air carriers.
From subsection 19(4) we know that the charge under 19(1) is not payable if the fuel is brought into the listed province (Alberta) in the supply tank of the aircraft and the fuel is for use in the operation of the aircraft itself.
Subsection 19(5) outlines exceptions to subsection 19(4). For the fuel brought in to Alberta in the aircraft’s supply tank to result in a charge, the following conditions would need to be met:
1) The fuel in the supply tank is brought in for use in a covered journey in respect of the listed province (Alberta)
2) The person is an interjurisdictional air carrier for that type of fuel
3) The person is required to be but is not so registered as a air, marine or rail carrier for that type of fuel
Note that the third condition is not met in this case since the airline in your question is registered as an air carrier with respect to the fuel it is bringing in to Alberta in the supply tank of its aircrafts.
This means that subsection 19(5) does not apply and that in accordance with 19(4), the fuel brought into Alberta in the supply tank of the registered air carrier’s aircraft is not subject to the charge under 19(1).
Please note that in accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the interpretation given in this letter, including any additional information, is not a ruling and does not bind the CRA with respect to a particular situation. Future changes to the GGPPA, ETA or any related regulations could affect the interpretation or the additional information provided herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me at 343-551-2259.
William Ferguson
Senior Rulings Officer,
Excise Tax and Fuel Charge Division
Excise and Specialty Tax Directorate
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