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
5th floor, Tower A, Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 9000268
Attention: [Client]
July 9, 2024
Dear [Client]:
Subject: Removing product from a listed province by a non-registered person
Thank you for your letter dated December 12, 2023, concerning the application of the Greenhouse Gas Pollution Pricing Act (GGPPA) to products being removed from a listed province by a non-registered person.
All legislative references are to the GGPPA and the regulations therein, unless otherwise specified.
We understand from your request that you are concerned that the condition under paragraph 5.1(1)(d) of the Regulations outlined below, exposes [client’s] members to an unacceptable level of risk when they are selling fuel to a non-registered person who is removing the fuel from a listed province.
In accordance with the Regulation the following is required to claim a rebate under paragraph 5.1(1)(d) of the regulations:
- The registered distributor is provided and retains, evidence that the fuel was removed from the listed province and the other conditions are met, if applicable.
Per your request, the [client] feels that the conditions unfairly put the onus on the registered distributor to have knowledge of the ultimate location and use of the fuel by the purchaser. The most onerous of these is the requirement for the provision and retention of proof of removal from the listed province. In contrast to exports from Canada, there are limited sources of third-party evidence for crossing provincial boundaries. The concern is that without adequate sources of proof, members are exposed to an unacceptable level of risk.
The consequence of this is that the members, while acting in good faith, are subject to assessment if the purchasers utilize their own vehicles to remove the fuel and may not be able to provide evidence satisfactory to the Minister in those circumstances.
Interpretation Requested
You are requesting reassurance that previous advice from the CRA regarding a certification from a purchaser that the fuel will be removed from a listed province, is still acceptable to the Minister to satisfy paragraph 5.1(1)(d). If not, you are seeking written clarification as to the type of documentation that the Minister will accept to substantiate proof of removal from a listed province.
Interpretation Given
Where a registered distributor of a type of fuel is delivering that fuel to a purchaser who is not registered, or required to be registered, as a distributor for that type of fuel, and the purchaser removes the fuel from a listed province, the Minister will consider a written declaration by the person that the fuel will be removed from the listed province as acceptable documentation for audit purposes.
In circumstances where the purchaser is removing the fuel either in their own or in a third-party conveyance, it would be appropriate to also request a copy of the manifest that is required to be physically with the driver of the conveyance. Although the primary purpose of the manifest is to document the details regarding the goods being transported for federal or provincial safety regulations, the manifest will detail the type and quantity of fuel being delivered, as well as where the fuel is being delivered which will provide an additional source of documentation to satisfy the third condition in paragraph 5.1(1)(d) of the Regulations.
The interpretation(s) given in this letter, including any additional information, is not a ruling and does not bind the Canada Revenue Agency (CRA) with respect to a particular situation. Future changes to the Act, regulations, or the CRA’s interpretative policy could affect the interpretation(s), or the additional information provided herein. For further information see the publication “Requesting an Excise and Specialty Tax Ruling or Interpretation”.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 905-719-5752.
Sincerely,
Melanie Pearce
Senior Rulings Officer
Fuel Charge Unit
Excise Tax and Fuel Charge Division
Excise and Specialty Tax Directorate
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